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ECO339 - Economics of AI

Department of Politics and Economics, Ankara University

2025-2026 Academic Year, Fall Term Course


Lecturer & TA Information


Course Overview

This course explores the economic consequences of disruptive technologies, with a particular emphasis on artificial intelligence (AI). We will focus on the technological (r)evolution that began in the 1960s and transformed the world into a networked economy in the following decades. This transformation has had significant economic implications, as disruptive technologies like the internet, social media, and AI have revolutionized market institutions, including firms, governments, and regulatory frameworks. Today, some scholars argue that AI-based technologies offer the potential to create a more efficient, free, and just society. Others, however, believe that AI companies should be regulated, as they may contribute to job loss, income inequality, and the undermining of democratic institutions.

Research questions

In what ways do peer-to-peer interactions on digital platforms contribute to economic value creation? How do these interactions affect market structures? What economic models underpin the provision of “free” services by social media companies, and how do these companies monetize user interactions and data to generate revenue? What are the legal and ethical considerations surrounding data ownership in the context of AI model training, and how do regulatory frameworks address the rights of data contributors versus AI companies? To what extent do digital markets adhere to the principles of the “invisible hand”? How is the automation of tasks through AI and robotics impacting job markets? What sectors or professions are most vulnerable to displacement or transformation in the coming decades?

And most importantly: (Why) Should we (i.e., netizens) care?

Evaluation

The course grade will consist of a 40% midterm exam and a 60% final exam. Attendance is not compulsory; however, students will be assigned to participate in online and offline activities during class hours. Participation in these activities will impact the final grade.

Resources

Nayak, Bhabani Shankar and Nigel Walton. 2024. Political Economy of Artificial Intelligence. Springer. Available via Ankara University Library.

Stuart Russel's Youtube Video

Main Data Source

Our World in Data

Form Links and Midterm + Final Announcements

Note: Form links will be inactive at 23:59.

Topic 1: The Simple Economics of AI PPT File // Class Assignment // Lecture Notes 1

Topic 2: Can Capitalism Survive PPT File // Class Assignment // Lecture Notes 2A // Lecture Notes 2B // Lecture Notes 2C

Topic 3: (Small) Data, Big Data, and Prosumption PPT File // Class Assignment // Lecture Notes 3A // Lecture Notes 3B // Lecture Notes 3C // Lecture Notes 3D // Lecture Notes 3E

Topic 4: Digital Protectionism PPT File // Lecture Notes 4

Overview of Economics of AI: PPT File // Lecture Notes Overview 1 // Lecture Notes Overview 2

Sample Final: Previous Exam

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The public repository of my course, "Economics of Artificial Intelligence."

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