As more of the economy goes digital, the BEPP department has a brand-new course called Digital Economics for Business that is perfect for students who are interested in getting a better understanding of the key economic forces at play. The course, which will be rolled out in the spring of 2023, will cover key economic concepts, business models & strategies in the context of economics, and actual business applications. Students will examine the markets where digitization is occurring and discuss what that means in terms of how firms compete. Plus, they will dissect what the market structure looks like.
The course, which will count as an elective for the business analytics co-major, will be taught by BEPP Chair Jeff Prince. He’ll start off the semester by examining specific industries.
“I want them to have the skills to be able to look at an industry’s key features, see where digitalization plays a role, and identify the key economics that they need to be thinking about for this industry,” says Prince.
For example, if they are the decisionmaker, they might ask, “What should I be thinking about when it comes to pricing strategies or rolling out new products?’” If, however, they are a buyer or customer, they may ask, “What should I be anticipating? Where might I expect the industry to be moving? Should I expect different pricing strategies over time as the industry evolves?”
Jeff Prince, Professor and Chair, Business Economics and Public Policy
“It’s really just being able to bring that critical eye to different business situations and identify the relevant economics of what it means in terms of making good decisions,” says Prince. “Because digital economics is an ongoing process, we’ll talk about where we see things emerging and where we see transformation in progress.”
The course will also talk about regulations as regulating the big digital platforms has been a hot-button topic. That certainly provides a lot of interesting conversations about the economics, in and of itself, but Prince plans to reach beyond that.
“There will be ongoing conversations about data privacy laws that’s going to go well beyond Google and Amazon,” he says. “Some people want to act like digital markets are this unicorn thing, but it’s not necessarily new.”
The key economic forces that drive optimal decision making will change. It’s not that they are new economic forces; it’s that they are playing a more prominent role and understanding of how that change is taking place and what that means in terms of best practices. This applied economics course is designed to help students navigate those things.
“It’s trying to help students bridge the abstract notions of things like having zero marginal costs, switching costs, surge costs, lock-in standardization,” says Prince. “And then thinking about how that applies to actual managerial decisions they might have to make or how it applies in markets they might have touch points with.”
Teaching this course is in Prince’s wheelhouse. Not only does much of his research touch on these topics but he also recently took a year-long sabbatical to work at the Federal Communications Commission.
“Telecommunications plays a central role in all of this so I have a good combination of skills and experience to offer this course,” says Prince.
And the timing couldn’t be better as digital economics is only going to become more prominent across industries.
“I believe that we will be one of the early undergrad programs to offer a program like this, but I think it’s the kind of thing that we’ll see more of over time,” says Prince, who anticipates that there will be demand on both sides—both students who will want this content as well as employers who will want students to understand these concepts.
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