Economic Design (ECON90028)

Graduate courseworkPoints: 12.5Not available in 2018

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Overview

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This subject is an introduction to Economic Design and the interaction of modern economic theory, economic policy and experimental economics. The subject will cover mechanism design, auction theory, contract theory, and the fundamental results on the limits to efficiency in asymmetric information environments. The theory will be illustrated with case studies of recent policy applications of economic design techniques.

Intended learning outcomes

On successful completion of this subject, students should be able to:



  • Set up and solve contact design problems in asymmetric information environments;
  • Analyse bidder behaviour in standard auction forms;
  • Set up and solve auction design problems in common and independent private value environments;
  • Explain and apply the Envelope Theorem, the Revelation Principle and the Revenue Equivalence Theorem, and their implications for auction theory and contract theory; and
  • Explain the fundamental results of mechanism design and implementation theory on the limits to efficiency in asymmetric information environments.

Generic skills

On successful completion of this subject, students should have improved the following generic skills:

  • Written communication
  • Collaborative learning
  • Problem solving
  • Team work
  • Mathematical reasoning
  • Application of theory to practice
  • Interpretation and analysis
  • Critical thinking

Last updated: 3 November 2022

Eligibility and requirements

Prerequisites

Code Name Teaching period Credit Points
ECON40001 Advanced Microeconomics
Semester 1 (On Campus - Parkville)
 12.5

or

Code Name Teaching period Credit Points
ECON90002 Microeconomics
Semester 1 (On Campus - Parkville)
 12.5

Corequisites

None

Non-allowed subjects

Code Name Teaching period Credit Points
ECON40006 Economic Design
Not available in 2018
 12.5

Inherent requirements (core participation requirements)

The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.

Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home

Last updated: 3 November 2022

Assessment

Additional details

  • 1.5 hour mid-semester examination and one 3-hour end-of-semester examination (totalling 80% and split between the midterm and the final as the maximum of 10% for the midterm plus 70% for the final and 30% for the midterm plus 50% for the final) - 80% (10%+70% or 30%+50%, whichever is greater); and
  • Five 400-word homework assignments (4% each) due in weeks 3, 5, 7, 9 and 12

Last updated: 3 November 2022

Dates & times

Not available in 2018

Time commitment details

Estimated total time commitment of 170 hours per semester

Last updated: 3 November 2022

Further information

  • Texts

    Prescribed texts

    You will be advised of prescribed texts by your lecturer.

  • Subject notes

    Students may not receive credit for both ECON90028 Economic Design and ECON40006 Economic Design.

  • Related Handbook entries

    This subject contributes to the following:

    TypeName
    CourseMaster of Economics
  • Available through the Community Access Program

    About the Community Access Program (CAP)

    This subject is available through the Community Access Program (also called Single Subject Studies) which allows you to enrol in single subjects offered by the University of Melbourne, without the commitment required to complete a whole degree.

    Please note Single Subject Studies via Community Access Program is not available to student visa holders or applicants

    Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.

  • Available to Study Abroad and/or Study Exchange Students

    This subject is available to students studying at the University from eligible overseas institutions on exchange and study abroad. Students are required to satisfy any listed requirements, such as pre- and co-requisites, for enrolment in the subject.

Last updated: 3 November 2022