Econ 521b: Advanced Economic Theory: Topics (2010)

Spring 2010
9:00-10:20 T/TH, 28 Hillhouse, Room 106

Dirk Bergemann
30 Hillhouse Avenue, #24
432-3592, Email
Office hours T 1:00-3:00

Juuso Valimaki
30 Hillhouse Avenue, #6
432-6519, Email
Office hours T 1:00-3:00

Topic: This course covers selected topics in the economics of information and uncertainty. The first part of the course will cover the theory of mechanism design and some of its applications. The second part of the course will cover some recent papers in communication, learning and networks..

Course Requirements: This course has five basic requirements. They are: (i) reading the assigned papers before the presentation in class, (ii) solving the problem sets, (iii) presenting one research paper, (iv) writing six referee reports (before the presentation of the papers) and (v) writing a term paper. The assignments will be given biweekly. Class participation, assignments, and the term paper will jointly determine the final grade.

Readings: The current reading list will be completed as the class proceeds.

Schedule:

Tuesday, January 12 (DB): Dynamic Mechanism Design: Efficiency

“The Dynamic Pivot Mechanism” Econometrica, forthcoming
“The Dynamic Pivot Mechanism: Slides”

Thursday, January 14 (DB): Dynamic Mechanism Design

“Bandit Problems”
First Referee Report: Sequential Screening
First Problem Set: Bandit Problems and Information Disclosure
First Problem Set Solution: Bandit Problems and Information Disclosure

Tuesday, January 19 (DB): Sequential Screening

Sequential Screening
An excellent introduction into the theory of stochastic orders is given by
M. Shaked and J. G. Shanthikumar, Stochastic Orders and their Applications, Associated Press, 1994.
“Regulation and Information in a Continuing Relationship” is a two-period generalization of the earlier and seminal paper:
“Regulating a Monopolist with Unknown Cost”
A recent and considerable generalization is offered in:
Dynamic Mechanism Design
Dynamic Mechanism Design: Slides