Market Design

Prerequisites: ECON G6211, ECON G6212. Market Design is an emerging field in economics that attempts to devise a practical scheme for allocating scarce resources to individuals who value them. Its applications involve many important real life problems ranging from allocation of government resources such as public land, fishing/mineral rights, radio spectrum licenses, allocation of school choice and transplantable human organs, assignment of workers to jobs, to placement of advertising in Internet search engines. Mechanism design underpins the field as a general methodological framework, which is in turn operationalized by two branches of theories: 1) Auction Theory and 2) Matching Theory. The course will provide a guide through these theories and discusses a few applications along the way.