316-408 Economic Design

Students may not gain credit for both 316-408 Economic Design and 316-684 Economic Design.

316-338 Mathematical Economics and 316-402 Advanced Microeconomics

This subject is an introduction to economic design, 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.

• High level of development: problem solving; statistical reasoning; application of theory to practice; interpretation and analysis; critical thinking.

• Moderate level of development: accessing data and other information from a range of sources.

• Some level of development: oral communication; written communication; collaborative learning; team work; synthesis of data and other information; evaluation of data and other information.

One 3-hour end-of-semester exam (80%), assignments and weekly problem sets not exceeding 2000 words (20%).

• P Milgrom, Putting Auction Theory to Work. Cambridge University Press, 2004. B Salanie, The Economics of Contracts, MIT Press, 1997.