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ES50153: Game theory, mechanism design, and experimental methods

[Page last updated: 23 October 2023]

Academic Year: 2023/24
Owning Department/School: Department of Economics
Credits: 10 [equivalent to 20 CATS credits]
Notional Study Hours: 200
Level: Masters UG & PG (FHEQ level 7)
Period:
Semester 2
Assessment Summary: CW 60%, OT 40%
Assessment Detail:
  • Presentation 1 (OT 10%)
  • Coursework 1 (CW 20%)
  • Coursework 2 (CW 20%)
  • Presentation 2 (OT 30%)
  • Coursework 3 (CW 20%)
Supplementary Assessment:
Like-for-like reassessment (where allowed by programme regulations)
Requisites:
Learning Outcomes: At the end of this unit students should be able to:
* Analyze markets and allocation problems with the tools of mechanism- and market design;
* Outline and evaluate the main results in the literature of mechanism design;
* Create solutions to real-life design problems by applying and adapting concepts and tools developed in the unit;
* Detecting incentive problems in the presence of private information and constructing methods of eliciting private information in allocation and matching problems;
* Design experiments to analyse properties of mechanisms in economic, financial, and business contexts;
* Design and program experimental instructions using computer software;
* Construct behavioural predictions drawing on economic theory, behavioural economics or finance, and psychology;
* Empirically investigate experimental results and behaviour using econometric tools;
* Evaluate findings using insights from economic and psychological research.


Aims: The aim of this unit is to provide students with knowledge and skills on how to apply mechanism design and experimental methods from economics and psychology to address practical economic, financial, and business problems.

Skills: Ability to apply theoretical, algorithmic, and empirical mechanism design techniques to practical problems

Ability to create logically rigorous arguments

Ability to analyse and synthesize information

Ability to plan, design, and execute programming tasks.

Content: The Mechanism Design Problem

Dominant Strategy Implementation
* Dominant Strategies
* Direct Mechanisms and the Revelation Principle
* The Gibbard-Satterthwaite Theorem
* Groves Clarke Mechanisms

Bayesian Implementation
* Bayesian Revelation Principle
* Expected Externality Mechanism
* Auctions and Revenue Equivalence

Experimental economics and game theory
* Collective action problems
* Zero-sum game
* Coordination problems

Market experiments
* Buying and selling strategies
* Market structure and competition
* Asymmetric information and adverse selection

Auction experiments

Bargaining experiments.

Course availability:

ES50153 is a Designated Essential Unit on the following courses:

Department of Economics
  • THES-AFM30 : MSc Economics for Business Intelligence and Systems

Notes:

  • This unit catalogue is applicable for the 2023/24 academic year only. Students continuing their studies into 2024/25 and beyond should not assume that this unit will be available in future years in the format displayed here for 2023/24.
  • Courses and units are subject to change in accordance with normal University procedures.
  • Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.
  • Find out more about these and other important University terms and conditions here.