Economics of the Internet: The Digital Revolution

Using microeconomic theory and case studies, this course examines the impact of digital communication technology (DCT) on markets. DCT has made information access instant, continuous and ubiquitous. Economic drivers of networked markets are faster data transfer, elimination of intermediaries, a content tsunami and a scarcity of time. Models examined include graph theory, game theory, imperfect information, behavioral economics, network effects. The new business model is one of engaging and empowering communities, while being asset-light and scalable, as seen in startups in Asia and Africa. Implications for technology policy will be discussed.