Course content

Course is composed from three parts central to modern digital economics: Economics and planning of networks, telecommunications and information industry, modeling of telecommunication systems with the help of the methods of operations research and managerial economics, and planning of competitive IKT services, in particular internet based services and mobile data services.

Learning outcome

Position and function within the study program: This is an elective course in the 8. semester of the MTIØT program, and is obligatory for students that focus on digital economy within the specialization in Financial Engineering. We make use of the knowledge gained in the compulsory courses in mathematics, statistics and information technology, in TIØ4118 Industrial economic analysis and in TIØ4126 Optimization and Decision Support. The course fits well with TIØ4140 Project Evaluation and Financing. It contributes to the learning objective of the MTIØT program, point 4.1, "Interface between finance and operations" and point 4.2 "Microeconomic theory; Game theory; Production economics; Optimization models used within production, resource allocation and energy; Stochastic models". the course is also advised for students in the 4th year of the study program in Communications Technology who takes Digital Economy as their main profile. The course will convey the following knowledge: - The theoretical foundation regarding analysis of economic dimensions of projects in information technology, telecom and data nets, advanced ICT services. Knowledge of optimization based planning methods for data networks. Usage of financial methodology like real options, portfolio theory, risk management for analysis of ICT projects. - Knowledge of important concepts of ICT economics as: long tail markets, network effects, modeling of markets with positive feedback and estimation of cost of ICT equipment. The course will develop the following skills: - Training in utilization of general microeconomic, financial and operations research methods together with special properties of ICT networks for analysis of projects in development of telecommunications and data networks and related services. Other important learning objectives: Give training in usage of relevant software for economics and planning of ICT technology and services.

Learning methods and activities

Lectures and seminar presentations. There is also mandatory requirement to be present in the discussions linked to the project assignment. The course will be held in English.

Recommended previous knowledge

Knowledge which corresponds to TIØ4118 Industrial economic analysis and TIØ4126 Optimization and Decision Support for Industrial Buisness Planning.

Course materials

Is given at the beginning of semester.

Credit reductions