Digital economySyllabus

Subject code

İF-2613y

Credits

6

Student workload

120

Semester

Spring semester

Academic year

2025-2026

Subject type

Mandatory

Form of education

Full-time

Language of instruction

Azerbaijani

In-class hours

including 30 hours of lectures and 30 hours of practical sessions.

Out-of-class hours

Independent study (IS) amounts to 120 hours and includes the completion and submission of independent assignments, as well as preparation for lectures, seminars, and colloquia.

The course "digital economy" includes 60 contact hours, including 30 hours of lectures and 30 hours of practical sessions. independent study (is) amounts to 120 hours and includes the completion and submission of independent assignments, as well as preparation for lectures, seminars, and colloquia. students are assigned one independent project, either individually or in groups. independent work is graded on a scale of 1–10 points and constitutes a total of 10 points for the semester. at the end of the semester, assessment is distributed as follows: attendance – 10 points; practical sessions and colloquia – 30 points; independent assignment – ​​10 points. the remaining 50 points are awarded based on the final examination. the course is delivered in the second semester and concludes with a final examination. the course carries 6 ECTS credits within the academic program.

• lecture
• interactive discussion
• seminar
• case study
• presentations

No learning outcomes have been added.

1. 1.
   Theoretical and structural foundations of the digital economyLecture

   Industrial revolutions and the evolution of digitalization; the concept and key features of the digital economy; the transition from the information economy to the digital economy; platform economy and network effects; digital transformation and business model innovation; the structure of digital markets; and information and digital resources as sources of economic value.

2. 2.
   Foundations of the digital economy i: digital goods and servicesLecture

   The concept, key characteristics, and classification of digital goods and services; the features of marginal and transaction costs in the digital economy; the average revenue per user (arpu) indicator in digital business models; public good characteristics of digital services; and bundling and digital commodification of digital products.

3. 3.
   Foundations of the digital economy ii: production models in the digital economyLecture

   Forms of production of digital goods and services; the in-house production model; the commons-based peer production (cbpp) model; the crowdsourcing mechanism; the open-source software model and its economic characteristics; and algorithmic coordination.

4. 4.
   Value models in the digital economy IIILecture

   Platform-based value creation; multi-sided platforms (msps); network effects; data-driven value creation; digital monetization mechanisms; and digital ecosystems.

5. 5.
   Network effects and market dynamics in digital marketsLecture

   Positive and negative network effects; same-side and cross-side effects; path dependency; and market concentration and structural changes in digital markets.

6. 6.
   Consumer dependency mechanisms and the formation of market power in digital marketsLecture

   Lock-in and switching costs; lock-in mechanisms; regulation of lock-in; the formation of monopolies in the digital economy; mergers and acquisitions; standards; and the long tail phenomenon.

7. 7.
   Measurement and indicators of the digital economyLecture

   Gdp, measurement and development indicators of the digital economy, g20 metrics, and measurement tools and analytical approaches (descriptive, predictive, prescriptive).

8. 8.
   Big data and data-driven decision makingLecture

   The 5v characteristics of big data; data collection and processing systems; data monetization; descriptive analytics, predictive analytics, and prescriptive analytics; data visualization and decision support systems; applications of big data in financial analytics, including credit scoring and risk modeling.

9. 9.
   Effect of shock wave on people and objectsIndependent work

   Analysis of the nature and degree of damage to people by shock waves (injuries of different severity) and classification of damage to buildings, structures and equipment (full, strong, medium, weak destruction) with different values ​​of excess pressure.

10. 10.
    Financial technologies (fintech) and digital financeLecture

    The concept and economic significance of fintech; fintech ecosystems and key participants; digital banking and neobank models; open banking and the API economy; electronic payment systems and digital money instruments; central bank digital currencies (cbdcs); financial innovations and digital financial infrastructure.

11. 11.
    Blockchain technology and decentralized systemsLecture

    The economic logic of blockchain; distributed ledger technology (dlt); consensus mechanisms (pow, pos, etc.); smart contracts; token economy; decentralized finance (defi); DAO models; and blockchain applications in the real sector.

12. 12.
    Digital assets, data, and valuation modelsLecture

    The economic nature of cryptoassets and digital assets; tokenomics and incentive mechanisms; blockchain-based data structures and transparency; on-chain data analysis and market indicators; valuation models for cryptoassets; volatility and behavioral factors; algorithmic trading and data-driven price forecasts; and ESG and energy consumption considerations.

13. 13.
    Evolution of digital markets and s-curvesLecture

    S-curve in markets; empirical evidence; competition, collaboration, and cooperation; and the role of electronic banking.

14. 14.
    State policy and regulation of the digital economyLecture

    Digital taxation and data policy; anti-monopoly mechanisms in platform markets; regulation of cybersecurity and digital assets; and national and international digital development strategies.

15. 15.
    The role of the state in the development of the digital economy in azerbaijanLecture

    The role of e-government in digital economy development; the e-government portal and its services; verification tools for electronic transactions in the e-government system; the legal framework for the digital economy; electronic registration of business entities; and key areas of state support for digital economy development.

1. • harald overby, jan a. audestad. introduction to digital economics: foundations, business models and case studies, second edition, 2021. • harald overby, jan a. audestad. digital economics: how information and communication technology is shaping markets, businesses, and innovation, 2018. • romana bookth & richard heeks. defining, conceptualising and measuring the digital economy, global development institutes working paper series, 2017. • avi goldfarb & catherine tucker. digital economics, NBER working papers, 2017. • g20 argentina, detf. toolkit for measuring the digital economy, 2018. • v. qasimli, m. talibova, g. guliyeva, a. museyibov, f. mirzayev, a. gadashov, g. ahmadova. digital economy. baku: azprint, 2023, 262 pages. • strategy. harvard business review: "top 10" must-reads. translated from english, 2021. • k.e. case, r.c. feyr & sh.m. oster. principles of microeconomics, 12th edition, pearson, 2017. translated from english, baku, 2018. • gregory n. mankiw. principles of economics, 3rd edition, harvard university. translated from english, baku, 2008. • digital transformation: most effective management ideas from harvard business review. istanbul, 2022.