Market Design

The theory of auctions and matching have been one of the most important successes of applied game theory. Auctions have become a central institution for resource allocation in real world markets; instrumental in allocating resources as varied as natural resources, spectrum rights, electricity generating capacity and more. Matching algorithms play a central role in allocation of discrete resources. This course aims to prepare the students to be able to analyze auctions and matching markets using tools from economics and game theory.

1. Students can analyze bidder behavior in standard auction formats.
2. Students can discuss the most important considerations that go into practical auction design.
3. Students can analyze matching markets for resource allocation with appropriate notion of stability.