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Economic Design (ECON90028)
Graduate courseworkPoints: 12.5Not available in 2025
About this subject
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: 8 November 2024