J7SC 2BA00 - Market Design

In this course, we explore the theory and practice of market design. economists study markets and are also involved in the design of marketplaces. Key examples include auctions to sell electricity, radio spectrum or broadcasting rights for sport events; mechanisms to sell online ads; algorithms to match candidates with jobs, students with schools, to allocate university courses to students. the field of market design studies how different market organization perform along a variety of criteria. It builds on the tools of game theory and mechanism design. In this course, we will seek to understand the underlying theory in an intuitive way and discuss actual designs. An underlying goal is to understand why some market institutions succeed while others fail.

A background in economics and mathematics is recommended. The course is ideal for students who have followed the economics major at Sciences Po and want to learn more about microeconomics and its direct applications.

The course is based on lectures to expose the theory, and class discussion of applications.

Course validation is based on two problem sets as homework and a short paper. For the paper, writing alone or in groups, students will write a short essay that identifies an area of their choice where ideas from market design can be fruitfully applied and propose a new design or substantive improvements over existing ones. If time allows, hey will also present their work during the last session of the class.