Bachelor
2024/2025
Mechanism Design
Type:
Compulsory course (Economics)
Area of studies:
Economics
Delivered by:
Department of Economics
When:
4 year, 1 module
Mode of studies:
offline
Open to:
students of one campus
Instructors:
Aleksei Kondratev
Language:
English
ECTS credits:
4
Contact hours:
42
Course Syllabus
Abstract
Mechanism design is a science of how to construct economic mechanisms (rules, environments, institutions) with desirable properties. While the usual microeconomic approach aims at understanding how agents behave in certain environments given certain rules, Mechanism design aims at finding "good" rules that lead to desirable outcomes. At the same time the rules themselves have to be simple and non-manipulable, i.e. provide incentives to participate sincerely. Mechanism design uses game theory tools and can be considered as its most applied part. The range of applications is very broad: from auctions and internet marketplaces to admission of young students to colleges, voting mechanisms, online dating services, and many others.
Learning Objectives
- overview of general methods used to design mechanisms in different areas of life
- provide an overview of general methods used to design mechanisms in different areas of life
- rovide an overview of general methods used to design mechanisms in different areas of life
Expected Learning Outcomes
- Able to identify deficiencies in real-life markets
- Know Revenue Equivalence Theorem, its assumptions and applications
- Know standard auction forms and able to find optimal bidding functions
- Know types of games and solution concepts
- Understand the main concepts and properties of mechanism design
- Able to define and apply fair division, assignment, matching and voting mechanisms; know properties of these mechanisms
Course Contents
- 1. Example of market design problem.
- 2. Revenue equivalence.
- 3. Matching.
- 4. Assignment.
- 5. Voting and ranking.
- 6. Positional voting rules, iterative scoring rules and their properties.
- 7. Strategic voting.
Bibliography
Recommended Core Bibliography
- Haeringer, G. (2018). Market Design: Auctions and Matching. The MIT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.mtp.titles.0262037548
- Handbook of Computational Social Choice. (2016). Cambridge University Press. https://doi.org/10.1017/cbo9781107446984
Recommended Additional Bibliography
- Paul Klemperer. (2004). Auctions: Theory and Practice. SUNY-Oswego, Department of Economics. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.oet.tbooks.auction1