Microeconomics and Market Design

2 Credits.

This course develops the students’ ability to apply fundamental microeconomics concepts and tools to decision making by consumers and firms, and to understand economic exchanges and market mechanisms. The first half of the course covers consumer choice and market demand, production costs and firms’ profit maximization, market competition and equilibrium, market power and the implications of different market structures for output and pricing decisions. The second half is devoted to understanding the principles and design of practical market mechanisms; topics include game theory, auctions, matching markets, and market “platforms”.