Digital Strategy and Markets

Interactive simulations used in the MSc course Digital Strategy and Markets at Nova SBE.

• The production function: a service desk chooses how much to spend on AI tools.
• Substitutes and complements: the service desk chooses how many workers and AI capacity to contract to meet the fixed demand.
• Search costs and price dispersion: a buyer checks prices one shop at a time; cheaper checking narrows what people pay.
• Firm boundaries: forty activities can be bought on the market or made inside the firm; moving either cost line shifts where the boundary falls.
• The long tail in production: cheaper publishing lets more songs enter, and how much that is worth depends on how well success can be predicted.