Code: S2C1
ECTS: 6
Semester: 2nd
This course delves into the field of network economics, exploring how the structure of relationships and connections between individuals, firms, or even countries influences economic outcomes. We will analyse how social and economic networks affect behaviours, decisions, and ultimately, market dynamics.
Key concepts and topics covered include:
- Fundamentals of Network Theory: We’ll introduce the basic concepts of graph theory and social network analysis, including network topology, centrality measures, and network formation models.
- Network Effects: Explore the economic implications of network effects, where the value of a good or service increases with the number of users. Analyse direct and indirect network effects, network externalities, and their impact on market competition.
- Game Theory on Networks: Study how strategic interactions are influenced by network structures. Learn about concepts like network games, diffusion of information and innovation, and the role of social influence in decision-making.
- Information Economics in Networks: Examine how information flows through networks and affects economic outcomes and analyse information asymmetry.
- Market Competition and Network Structure: Explore how market competition is shaped by the underlying network structure. Analyse models of competition in industries with network effects, platform markets, and the role of network centrality in determining market power.
- Applications of Network Economics: Apply the theoretical framework to real-world scenarios, including social media platforms, telecommunications networks, financial markets, and innovation diffusion.
Introduction to the economic study of networks and interconnected systems; basic concepts of graph theory and network analysis relevant to economic reasoning; network structures, nodes, ties, centrality, and diffusion processes; direct and indirect network effects and network externalities; formation and dynamics of social and economic networks; strategic interaction and decision-making in networked environments; information flows, influence, and coordination in networks; competition and market power in networked and platform-based markets; applications to digital platforms, social media, telecommunications, innovation ecosystems, and financial networks; critical examination of how network structures shape value creation, market behaviour, and economic transformation.
- Search, analysis and synthesis of data and information, with the use of the necessary technology
- Adaptability to new situations
- Decision-making
- Working independently
- Working in an interdisciplinary environment
- Production of new research ideas
- Criticism and self-criticism
- Production of free, creative and inductive thinking
Upon successful completion of the course, students will be able to:
Knowledge
- explain the main concepts of network theory and their relevance to economic behaviour and market structures;
- describe direct and indirect network effects, network externalities, and the role of information diffusion in economic systems;
- discuss how network structures influence competition, innovation, and market power.
Skills
- analyse economic situations using concepts from network economics and social network analysis;
- interpret the effects of network topology, centrality, and interdependence on strategic decision-making;
- apply theoretical models to platform markets, communication networks, and digitally mediated economic ecosystems.
Competences
- critically evaluate contemporary digital markets from a network-economics perspective;
- connect abstract theoretical models with real-world socio-economic phenomena;
- formulate analytical arguments regarding the role of networks in shaping digital transformation processes.
