B5729 - MARKET DESIGN AND BEHAVIORAL ECONOMICS

Conoscenze e abilità da conseguire

Il corso esplora i fondamenti della progettazione dei mercati, delle aste, delle strategie di negoziazione e dell'economia comportamentale, con un’attenzione particolare alle applicazioni nel mondo reale e ad esperimenti pratici. Gli studenti acquisiranno conoscenze su come funzionano i mercati, impareranno tecniche di negoziazione e analizzeranno il comportamento umano nelle decisioni economiche attraverso esperimenti pratici e discussioni in classe. Al termine del corso, saranno in grado di affrontare le sfide del mondo reale, armati di solide competenze che combinano teoria, pratica e la scienza del comportamento umano.

Contenuti

This course provides a comprehensive exploration of market design, auctions, negotiation strategies, and behavioral economics. Market design focuses on creating effective and efficient markets by structuring them to achieve desired outcomes, such as maximizing welfare or ensuring fair distribution of resources. Auctions, a primary mechanism in market design, involve structured processes for buying and selling goods and services through bidding. Students will learn about different auction types, their theoretical foundations, and practical implementations. Negotiations, another crucial component of market interactions, involve discussions to reach mutually acceptable agreements. The course covers various negotiation techniques and strategies to improve outcomes. Understanding market design, auctions, and negotiations is crucial for ensuring efficient and fair resource allocation, making strategic business decisions, and developing effective negotiation skills. Behavioral economics provides insights into human decision-making, helping to predict and influence behavior in market settings. This knowledge is vital for professionals in business and economics, policymakers, and individuals aiming to improve their negotiation skills and influence market dynamics. By the end of the course, students will possess a robust skill set combining theory, practical applications, and behavioral insights, enabling them to confidently tackle real-world business challenges.

Topics covered in the lessons will include:

- Introduction to market design

- Fundamentals of auction theory

- Applications of auction theory

- Negotiation and bargaining

- Foundations of behavioral economics

- Cognitive biases and heuristics

- Behavioral economics in market design

- Real world applications and case studies

Prerequisite Knowledge:

To successfully complete this course, students should have a foundational understanding of microeconomics, including concepts such as supply and demand, market equilibrium, and basic game theory. Prior coursework in introductory economics or business studies will help in grasping the more advanced topics covered in market design, auctions, and negotiation strategies. Additionally, an interest in behavioral economics and a willingness to engage in hands-on experiments and class discussions will enhance the learning experience.

Testi/Bibliografia

• Haeringer (2018), Market Design: Auctions and Matching, MIT Press (only the sections specified in class)
• Kahneman, D. (2011), Thinking Fast and Slow, Farrar, Straus, and Giroux, New York (only the sections specified in class).

Further readings will be provided during the course.

 

Metodi didattici

This course employs a variety of teaching methods to ensure a comprehensive and engaging learning experience.

Lectures will provide the foundational theoretical knowledge on market design, auctions, negotiation strategies, and behavioral economics. These sessions will include interactive elements such as real-time polling and Q&A segments to encourage student participation.

Case Studies will be utilized to bridge theory and practice, offering students the opportunity to analyze real-world applications and outcomes. Through these case studies, students will gain insights into the practical challenges and solutions in market design and negotiations.

Hands-On Experiments are a crucial component of this course. Students will participate in simulated auctions, negotiation exercises, and behavioral experiments to apply theoretical concepts in a controlled environment. These activities will help students understand the practical implications of the theories discussed in lectures.

Class Discussions will foster a collaborative learning environment. Students are encouraged to share their perspectives and experiences, which will enrich the collective understanding of the course material. Discussions will often revolve around current events, recent studies, and emerging trends in market design and behavioral economics.

Modalità di verifica e valutazione dell'apprendimento

Students attending lectures:

Participation and Attendance (counting for 10% of the final grade): Active participation in lectures, class discussions, and hands-on experiments is crucial. Students are expected to contribute to discussions, engage with course materials, and collaborate with peers during group activities.

Group paper (max 3000 words, counting for 40% of the final grade) investigating a real-world market design, auction, or negotiation scenario of your choosing. You may gather data on the scenario through secondary sources (media accounts, books, scholarly research) or primary sources (e.g., interviews with relevant stakeholders). Apply the concepts analyzed in the class and readings to explain the situation and provide suggestions for improving market outcomes, auction designs, or negotiation strategies. Groups must consist of 5 members maximum. All members of the group will be evaluated equally, and it is essential to negotiate an equitable distribution of efforts and contributions within your group. The responsibility for ensuring effective group collaboration and equitable participation lies entirely with the group members. Any issues related to unequal contributions or free riding must be resolved internally within the group, as the instructor will not intervene in these matters. The paper must be submitted on the day of the first exam session following the end of the course.

Written exam (counting for 50% of the final grade): A 1 hour and 15 min., closed-book, written examination, testing the theoretical knowledge acquired during the course.

The exam consists of 1 open question (with choice, 1 of 2 available questions, maximum 16 points) and 4 multiple-choice questions (in which the student is asked to justify their answers based on the theory studied - maximum 4 points each) on the whole program. The whole exam is worth a total of 32 points maximum.

In their answers to the open question, students have to prove a good mastering of the topics, ability to perform critical analysis and appropriate technical jargon.

Excellence (16 points) is awarded to answers showing excellent mastering of the topic (exhaustive, correct and complete), excellent analysis and perfect use of the jargon.

Very good performance (14 - 15 points) is achieved with correct, fully exhaustive and complete answers, showing a very good critical thinking.

Good performance (11 - 13 points) is achieved with correct answers, showing a good level of completeness and exhaustivity and fairly good critical analysis.

Sufficiency (9 - 10 points) is achieved with correct answers, showing a satisfactory ability to perform critical analysis and mostly correct jargon.

Insufficiency (6 - 8 points) is achieved with partially correct answers, that lack completeness and depth and show limited critical analysis, with superficial explanations and few connections between concepts. The use of technical jargon may be incorrect or inconsistent.

Failure (0 - 5 points) is achieved when the answer is mostly incorrect or incomplete, lacking essential elements of the topic or is off-topic.

In multiple choice questions, in addition to selecting the correct answer, students are required to justify their choices based on the theory studied. The evaluation criteria focus on the correctness of the answer, the quality of the justification, and the use of appropriate technical jargon.

Excellence (4 points) is awarded when the selected answer is correct, the justification demonstrates an excellent understanding of the relevant theory, with a perfect use of the technical jargon.

Good Performance (3 points) is awarded when the selected answer is correct, the justification is thorough and demonstrates a very good understanding of the relevant theory, with minor omissions or errors. Technical jargon is mostly correct.

Sufficiency (2 points) is awarded when the selected answer is correct; the justification shows a good level of understanding of the relevant theory, though it may not be exhaustive. Technical jargon is somehow correct.

Insufficiency (1 point) is awarded when the selected answer is incorrect, but the justification shows some understanding of the relevant theory.

Failure (0 points) is awarded when the selected answer is incorrect, and the justification shows minimal or no understanding of the relevant theory.

Students getting more than 30 points in the overall, consolidated grade will get a “cum laude” evaluation.

Students not attending lectures:

Written exam (counting for 100% of the final grade): A 2 - hour, closed-book written examination, testing the theoretical knowledge acquired during the course.

The exam consists of 2 open questions (8 points each maximum) and 8 multiple-choice questions (in which the student is asked to justify their answers based on the theory studied - 2 points each maximum) on the whole program. The whole exam is worth a total of 32 points maximum.

In their answers to the open question, students have to prove a good mastering of the topics, ability to perform critical analysis and appropriate technical jargon.

Excellence (8 points) is awarded to answers showing excellent mastering of the topic (exhaustive, correct and complete), excellent analysis and perfect use of the jargon.

Very good performance (7 – 7.5 points) is achieved with correct, fully exhaustive and complete answers, showing a very good critical thinking.

Good performance (5.5 – 6.5 points) is achieved with correct answers, showing a good level of completeness and exhaustivity and fairly good critical analysis.

Sufficiency (4.5 - 5 points) is achieved with correct answers, showing a satisfactory ability to perform critical analysis and mostly correct jargon.

Insufficiency (3 - 4 points) is achieved with partially correct answers, that lack completeness and depth and show limited critical analysis, with superficial explanations and few connections between concepts. The use of technical jargon may be incorrect or inconsistent.

Failure (0 – 2.5 points) is achieved when the answer is mostly incorrect or incomplete, lacking essential elements of the topic or is off-topic.

In multiple choice questions, in addition to selecting the correct answer, students are required to justify their choices based on the theory studied. The evaluation criteria focus on the correctness of the answer, the quality of the justification, and the use of appropriate technical jargon.

Excellence (2 points) is awarded when the selected answer is correct, the justification demonstrates an excellent understanding of the relevant theory, with a perfect use of the technical jargon.

Good Performance (1.5 points) is awarded when the selected answer is correct, the justification is thorough and demonstrates a very good understanding of the relevant theory, with minor omissions or errors. Technical jargon is mostly correct.

Sufficiency (1 points) is awarded when the selected answer is correct; the justification shows a good level of understanding of the relevant theory, though it may not be exhaustive. Technical jargon is somehow correct.

Insufficiency (0.5 point) is awarded when the selected answer is incorrect, but the justification shows some understanding of the relevant theory.

Failure (0 points) is awarded when the selected answer is incorrect, and the justification shows minimal or no understanding of the relevant theory.

Students getting more than 30 points in the exam will get a “cum laude” evaluation.

Strumenti a supporto della didattica

https://virtuale.unibo.it/

Link ad altre eventuali informazioni

https://virtuale.unibo.it/

Orario di ricevimento

Consulta il sito web di Emanuela Carbonara