This lecture introduces an innovative learning format centered around dynamic, AI-assisted self-study, complemented by in-person discussion sessions to deepen content understanding. Instead of traditional lecture-based teaching (Frontalunterricht), we are piloting a type of flipped-classroom approach. The course is designed to be co-developed by students and lecturers—for example, through the creation of podcasts using AI tools like NotebookLM in small groups. This not only reinforces your grasp of the material but also builds your AI literacy.

The course will be graded with 80 points total. 60 of them can be earned in the exam at the end of the semester. The remaining 20 points can be earned in the exercise, where a podcast of a part of the lecture content has to be generated. For outstanding podcast submissions, you can receive up to 10 additional bonus points.

Digital platforms and markets play an increasingly vital role in modern economies and societies. Understanding how to engineer these systems for efficiency, fairness, and societal benefit is crucial for shaping the digital future. By combining economic theory, engineering principles, and hands-on applications, this course prepares you to address real-world challenges in eCommerce, digital media, and digital democracy.
This lecture provides an in-depth exploration of the theoretical foundations, practical applications, and engineering principles essential for understanding and designing modern markets and digital platforms.

We aim to:

• Equip students with the ability to analyze, design, and evaluate digital markets and platforms.
• Provide an understanding of market mechanisms, economic principles, and the role of digital infrastructure in shaping economic and social interactions.
• Explore the influence of digital platforms on media, democracy, and citizen participation.
• Explore ethical implications of digital platforms and online market mechanisms.
• Apply generative AI tools to analyze, structure, and communicate topics from the lecture.
• Develop skills in critical evaluation of AI-generated content.

Course Structure:

1. Foundations of Platform & Market Engineering
   
   1. Market Engineering and Institutional Economics
   2. The "House of Market Engineering"
   3. Key concepts: efficiency, fairness, incentive compatibility, market convergence
2. Applications and Principles of Markets
   1. Market Engineering and Institutional Economics
   2. Economic theories in digital markets and platforms
3. Market Engineering Microstructure and Infrastructure
   
   1. Game Theory
   2. Mechanism Design
   3. Trust and Enforcement
   4. Auctions (single-item, combinatorial)
   5. IT & Business Infrastructure
   6. Evaluating Market Engineering: Experimental Economics
4. Digital Platforms and the Media
5. Digital Democracy:
   
   1. Online Polarization and Disinformation
   2. Digital Participation Engineering
   3. Digital Citizen Science Engineering
6. Ethical Implications

• Roth, A., The Economist as Engineer: Game Theory, Experimental Economics and Computation as Tools for Design Economics. Econometrica 70(4): 1341-1378, 2002.
• Weinhardt, C. ,Holtmann, C., Neumann, D., Market Engineering. Wirtschaftsinformatik, 2003.
• Wolfstetter, E., Topics in Microeconomics - Industrial Organization, Auctions, and Incentives. Cambridge, Cambridge University Press, 1999.
• Smith, V. "Theory, Experiments and Economics", The Journal of Economic Perspectives,Vol. 3, No. 1, 151-69 1989

ehemals: "Market Engineering: Information in Institutions"