Online marketplaces include the classic e-commerce sector (B2C and B2B), auction platforms, but also stock exchanges ("many to many electronic exchanges"). Students know the relevant theoretical and empirical backgrounds and relationships for the respective online markets. Students know the economic peculiarities relevant for strategic company decisions on online marketplaces. Students understand the resulting consequences of the usage of information and communication technologies on these markets. Students understand how online marketplaces work and they are able to apply simple economic principles in the design of these online marketplaces. Students understand the strategic incentives that different allocation mechanisms offer on online marketplaces and they can derive optimal behavioral strategies for market participants.

Students of the Master's program in "Economic and Business Analytics". But also students from other fields, with an interest

• in theoretical and empirical backgrounds and relationships of online marketplaces
• in management decisions on online marketplaces
• in the analysis of data
• in information and communication technologies

The course deals with the functionalities and the specialties of online marketplaces. In addition to an introduction to game theory and the associated economic competition models, simple basics of mechanism design are discussed. The theoretical and empirical features of e-commerce, auctions and exchanges are discussed (functionality, welfare implications, optimal strategic behavior, ...). The course also discusses how blockchains and cryptocurrencies work.

Course Objectives:

• Introduction of the fundamentals of mechanism design and its role in creating efficient market systems.
• Highlighting the importance of incentive compatibility and individual rationality in mechanism design.
• Exploring the structure and dynamics of B2C and B2B e-commerce markets.
• Presenting different auction formats, including English, Dutch, first-price, and second-price auctions.
• Discussing the challenges of common-value auctions and multi-unit auctions
• Explaining the concept of many-to-many electronic exchanges, including stock exchanges and commodity markets.
• Introducing the basics of blockchain technology and its applications in online marketplaces.
• Discussing the economic implications of cryptocurrencies and their role in decentralized markets.
• Providing a basic understanding of game theory principles and their application to online marketplaces. (Dominant and Nash Equilibria, Mixed Strategies, Bayesian Nash Equilibria)
• Illustration of the relevance of game theory in strategic decision-making within e-commerce and online auctions.
• Guiding students in applying simple economic principles to the design and analysis of online marketplaces.

• The course is held in form of distance learning. Hence, we will not meet in class. The whole content of the course (videos, slides, additional material) is accessible via the JKU's Moodle system. This enables students to study the content asynchronously and therefore also during the summer vacation. (Hence, this course is also an offer for part-time students who have professional commitments alongside their studies.)
• Students (or groups of students) have the obligation for personal meetings with the lecturer either in person or via videoconference to discuss open questions or topics that are difficult for them. There is time to discuss their perspective on the prepared material. Some students make use of this opportunity once or rarely; other students make use of it frequently.
• Students have to write a term paper in which they have to select a very specific online marketplace for which empirical data is available that can be used for a small data analysis exercise. The term paper should include a discussion of (i) general strategic aspects of the chosen online marketplace and (ii) a simple data analysis exercise based on the data for this online marketplace.

• Game Theory 101 from William Spaniel (gametheory101.com).
• Robert Gibbons, A Primer in Game Theory, Harvester Wheatsheaf, 1992
• The Economics of E-Commerce, Nir Vulkan, Princeton University Press, 2003
• Krishna, Vijay, , Auction Theory, second edition, Elsevier, 2009.
• Paul Milgrom, Putting Auction Theory to Work, Cambridge University Press, 2004.
• Aleksandar Pekec, Michael Rothkopf, Combinatorial Auction Design, Management Science 2015
• E-Commerce Economics, David VanHoose, Baylor University, 2003
• Nir Vulkan, The Economics of E-Commerce. A strategic guide to understanding and designing the Online Marketplace; Princeton University Press 2003.
• Industrial Organization, Lynne Pepall, Dan Richards & George Norman, Blackwell Publishing, 2008
• Niklaus Hofer („Vimja“): https://media.ccc.de/v/33c3-7824-einfuhrung_zu_blockchains, opens an external URL in a new window
• Several additional scientific journal articles on specific aspects of online market places 
• , Lynne Pepall, Dan Richards & George Norman, Blackwell Publishing, 2008 (hier nur die Kapitel 5, 6, 17 und 18)

Given an admission to the master program "Economic and Business Analytics" there are no additional requirements. Given basic knowledge in microeconomics and statistics (it is helpful to have an idea of regression analysis), the course should be feasible for all interested students (all necessary basics are discussed in the course)!

Course Language is English

You have to write a positive exam (at least 10 from 20 points). 

Exam Dates: 

• Thu. July 3rd, 2025, HS 16
• Thu. October 2nd, 2025, HS 3
• There will be a third exam end of October, beginning of November 2025

You have to write a term paper (at least 5 from 10 points).