Auction Theory and Market Design

What it is about

You learn game-theoretic fundamentals and mechanism design as well as the theory and practical realization of various auction and matching formats. In the end you will be able to explain properties and payment rules of open and closed auctions, model strategic interactions, and justify the selection of auction formats with regard to efficiency or revenue goals.

What you will be able to do

• Understand open and closed auction formats and their payment rules
• Apply game-theoretic models (e.g. dominant strategies, Nash equilibrium)
• Critique strategic interactions between bidders and the auctioneer
• Explain incentive and complexity issues in combinatorial auctions
• Assess and defend the choice of auction formats with respect to efficiency and revenue
• Familiarity with mechanism design theory, combinatorial auctions and matching markets
• Familiarity with approximation mechanisms and practical applications (e.g. frequency auctions, procurement)

What the module consists of

• VorlesungPresents the theoretical foundations and showcases application examples of different auction formats
• ÜbungSupervised individual work on practice problems for applying and evaluating game- and auction-theoretic models

Teaching method

• Vortrag (Dozent)Explains concepts and shows practical application examples
• Betreute ÜbungsaufgabenEnable applying, evaluating and critically reflecting modeling approaches, especially in combinatorial auctions