Summary
This course examines platform economics, integral to the digital economy. It begins with an exploration of network effects, definitions of platforms, and their typologies, followed by an analysis of their business, entry and growth mechanisms, pricing strategies and non-pricing strategies are also covered. The latter part of the course applies these concepts to specific platform types like search engines and peer-to-peer networks, exploring their unique properties. Discussions also extend to the regulation of these markets, either ex ante or ex post.
Detailed Course Outline
Introduction
This course is specifically designed for graduate students in engineering who aspire to deepen their understanding of platform markets—a key area of modern economics and business strategy. Platform markets, which include businesses like online marketplaces, social media networks, and other digital intermediaries, have distinct economic dynamics and regulatory challenges. By exploring these complex interactions, students will gain insights into how these platforms operate, grow, and influence global markets.
Course Learning Objectives
Throughout this course, participants will engage in comprehensive studies that include case analyses of successful platform businesses such as Amazon, Airbnb, and Uber. They will examine critical factors that contribute to the success or failure of these platforms, including network effects, platform design, and competitive strategy. Additionally, the course will cover regulatory considerations, such as antitrust issues and data privacy concerns, which are increasingly important as digital platforms become more pervasive in our daily lives.
Methodology
The course is structured to not only provide theoretical knowledge but also practical skills that can be directly applied in a variety of professional settings. Students will learn to:
- Analyze and evaluate the economic principles driving platform markets: Understanding the unique aspects of platform economics, such as multi-sided markets and network externalities.
- Develop strategies for platform growth and sustainability: Crafting business strategies that leverage platform strengths, mitigate risks, and navigate competitive landscapes.
- Navigate regulatory and ethical issues: Identifying and addressing the legal and ethical challenges that emerge when operating or competing with platform businesses.
- Apply insights to real-world scenarios: Through project-based learning, students will apply their knowledge to propose innovative solutions to real challenges faced by platform businesses, preparing them for strategic roles in their careers.
Target Audience
This course is particularly beneficial for those planning to enter industries dominated by platform dynamics or considering launching a startup in the digital economy. It provides the tools and insights necessary to navigate the complexities of platform markets, making it a valuable addition to the academic journey of any aspiring engineer or business strategist looking to make a significant impact in today’s technology-driven world.