AØKK08201U Mechanism Design
MSc programme in Economics – elective course
The PhD Programme in Economics at the Department of Economics:
- The course is an elective course with research module. In order to register for the research module and to be able to write the research assignment, the PhD students must contact the study administration AND the lecturer.
- The course is a part of the admission requirements for the 5+3 PhD Programme. Please consult the 5+3 PhD admission requirements.
This is a course about the economics of asymmetric information and ways to reveal it. How can a seller learn the buyers’ willingness to pay? How can a decision-maker ensure that an expert with a conflict of interest makes the best recommendation? How can a society decide whether a public project or a piece of legislation is worth implementing? When is simple communication enough and when are other tools needed, – and which tools could that be?
Where game theory explores how players act in a given environment, mechanism design takes a dual approach and asks instead how we should design the environment to induce the desirable behavior. Real-world applications include market design, organization of social choice and voting mechanisms, design of regulations and institutional design in general, and many others. The course introduces the students to both classic results and methods of mechanism design, and the bleeding-edge ideas from the research frontier.
After completing the course the student is expected to be able to:
Knowledge:
- Account for the fundamental ideas behind and approaches to mechanism design.
- Define main trade-offs arising in information extraction problems.
- Identify the limitations of existing approaches to mechanism design.
- Explain and discuss key theoretical concepts from academic articles, as well as discuss their interpretation
Skills:
- Set up policy, trade, and management issues as mechanism design problems.
- Propose mechanisms that induce the desired outcomes in various environments.
- Analyze the drawbacks of existing institutions and suggest alternatives or identify reasons why none are available.
Competencies:
- Apply the most relevant theoretical apparatus to analyze case-based problems.
- Applicate reasoning by using the analytical framework of mechanism design in real-world institutions, proposed policies, and market strategies
Slides and lecture notes are the main source of material. Various papers and surveys will be referenced throughout the course that can be used as supplementary readings.
The following textbook (available online via library) can be used as an additional aid, but the students are not expected to buy it:
- Narahari, Yadati. Game theory and mechanism design. Vol. 4. World Scientific, 2014.
The students are expected to have a good grasp on the material from the mathematics courses in the Bachelor program of Economics as "Mathematics A", "Mathematics B" and "Probability Theory and Statistics", and be able to solve maximization problems, work with probability distributions, calculate conditional expectations etc.
It is strongly recommended to have followed "Microeconomics III" at the Study of Economics, University of Copenhagen or a similar course, prior to taking this course. The students are expected to be familiar with Bayes-Nash Equilibrium and Perfect Bayesian Equilibrium solution concepts, and to be able to find equilibria in basic games of incomplete information with minimal guidance.
Having followed Advanced Game Theory could be helpful.
3 hours of lectures every week from week 36 to 50 (except week 42).
Schema:
The overall schema for the Master can be seen at KUnet:
MSc in Economics => "Courses and teaching" => "Planning and overview" => "Your timetable"
Timetable and venue:
To see the time and location of lectures please press the link under "Timetable"/"Se skema" at the right side of this page (E means Autumn).
You can find the similar information partly in English at
https://skema.ku.dk/ku2425/uk/module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-E25; [Name of course]””
-Select Report Type: “List – Weekdays”
-Select Period: “Efterår/Autumn”
Press: “ View Timetable”
Please be aware:
- The schedule of the lectures and the exercise classes can change without the participants´ acceptance. If this occur, you can see the new schedule in your personal timetable at KUnet, in the app myUCPH and through the links in the right side of this course description and at the link above.
- It is the students´s own responsibility continuously throughout the study to stay informed about their study, their teaching, their schedule, their exams etc. through the curriculum of the study programme, the study pages at KUnet, student messages, the course description, the Digital Exam portal, Absalon, the personal schema at KUnet and myUCPH app etc.
- Category
- Hours
- Lectures
- 42
- Preparation
- 140
- Exam
- 24
- Total
- 206
The lecturer gives collective oral feedback during lectures, individual oral feedback upon request, and individual written feedback on the problem set.
Office hours: Tuesdays 14:00-15:00.
for enrolled students: Rules etc at Master(UK) and Master(DK)
Foreign students and guests: Information about admission requirements, application, tuition fee, registration at Study Economics. Please read the curriculum before enrolment.
Efteruddannelse, gæste- og enkelfagsstuderende: Ansøgning, optag, pris etc. se Uddannelse i Økonomi. Læs venligst studieordningen inden tilmelding.
- Credit
- 7.5 ECTS
- Type of assessment
- Written assignment, 12 hours
- Type of assessment details
- Individual. Max 10 standard pages.
- Exam registration requirements
There are no requirements during the course that the student has to fulfill to be able to sit the exam.
- Aid
- All aids allowed
Use of AI tools is permitted. You must explain how you have used the tools. When text is solely or mainly generated by an AI tool, the tool used must be quoted as a source.
- Marking scale
- 7-point grading scale
- Censorship form
- No external censorship
- Exam period
Exam information:
The examination date can be found in the exam schedule here
More information is available in Digital Exam from the middle of the semester.
More information about examination, rules, aids etc. at Master (UK) and Master (DK).
- Re-exam
Same as the ordinary exam.
Reexam info:
The reexamination date/period can be found in the reexam schedule here
More information is available in Digital Exam in February.
More info: Master(UK),Master(DK)
Criteria for exam assesment
Students are assessed on the extent to which they master the learning outcome for the course.
In order to obtain the top grade "12", the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.
In order to obtain the passing grade “02”, the student must in a satisfactory way be able to demonstrate a minimal acceptable level of the knowledge, skills and competencies listed in the learning outcomes.
Course information
- Language
- English
- Course code
- AØKK08201U
- Credit
- 7.5 ECTS
- Level
- Full Degree MasterPh.D.
- Duration
- 1 semester
- Placement
- Autumn
- Go to 'Signup' for information about registration and enrollment.
- Schedule
- and venue:
- For teaching: Go to 'Remarks'.
- For exam and re-sits: Go to 'Exam'.
Study board
- Department of Economics, Study Council
Contracting department
- Department of Economics
Contracting faculty
- Faculty of Social Sciences
Course Coordinators
- Egor Starkov (egor.starkov@econ.ku.dk)
Lecturers
See 'Course Coordinators'
Please read "Remarks" regarding the schedule of the
teaching.