The course combines theoretical and empirical insights, drawing on both seminal contributions and recent research in the field.

While lectures include some light formalization, the content remains fully accessible to students enrolled in the program. No specific prerequisites are required beyond a basic understanding of economics.

This course explores how digital platforms operate, compete, and innovate in today's economy. Applying concepts from managerial economics and strategy, we examine the distinctive features of platform-based markets, particularly two-sided markets, and how they shape firm behaviour, competitive dynamics, and innovation patterns.

The course combines theoretical foundations with recent empirical findings and real-world case studies. Topics include network effects, pricing strategies, platform governance, competitive interactions within and between platforms, and the impact of emerging technologies such as artificial intelligence and data-driven innovation.

By the end of this course, course participants will be able to:
(i) understand the economic foundations of two-sided markets and digital platforms,
(ii) analyse pricing, differentiation, and market entry strategies in platform settings,
(iii) evaluate competitive dynamics between platforms and complementors,
(iv) assess the role of platform design and governance in shaping ecosystem outcomes and
(v) explore how AI and Big Data influence strategic decisions in platform markets.

Course structure

*Day 1*: Foundations: Understanding two-sided markets
We begin with covering the economic logic behind platform markets, discussing network effects, pricing structures, and adoption dynamics. Cases: (i) From disruption to decline? The rise and fall of Skype, (ii) Piggybacking: Facebook’s integration of Instagram.

*Day 2*: Platforms' strategic tools: Pricing and differentiation
We explore how platforms design pricing structures and differentiate themselves, leveraging their complementor (and user) installed bases. Cases: (i) From couchsurfing to luxe: Airbnb’s differentiation strategies, (ii) Playing for keeps: exclusive content and rivalry in the gaming industry.

*Day 3*: Competition within and across platforms
We investigate competition both between rival platforms and within ecosystems - especially between platforms and complementors. We also discuss recent and important competition policy issues. Cases: (i) Operating system wars: How Apple and Google claimed the mobile world, (ii) An Epic entry: Competition in the digital video game market.

*Day 4*: Innovation in platform ecosystems
This session focuses on platform-enabled innovation, and complementors strategies. We will also study how platforms can foster (or hinder) innovation in their own ecosystems. Cases: (i) Apple’s App Store: Control, ratings, and innovation incentives, (ii) Creating under constraints: How YouTube’s rules shape innovation by content creators.

*Day 5*: When platforms learn: AI, big data, and the future of strategy
We conclude with a discussion on how AI and Big Data reshape value creation, competition, and governance in digital markets. Cases: (i) Disruption by design: AI and the future of app stores, (ii) Feeding the algorithm: Data strategy at Amazon and TikTok.

Assessment: (1) Attendance to the class, 50% of the grade. (2) Group work, 50% of the grade.

Group work will take place during the afternoon sessions, in which participants will collaborate on case studies. For each case, one group will be randomly selected to deliver a short presentation to the class. However, all groups are expected to prepare presentation slides for both cases. Slides must be submitted to the instructor at the end of each session. This preparation and submission form part of the overall grade.