Auctions are a central instrument of the digital economy—often visible, as on eBay, but also hidden, operating automatically in the background during every Google search. But what strategic incentives shape bidders’ behavior, and how can auction mechanisms be designed to maximize efficiency or revenue?

This course conveys the theoretical foundations and methodological tools for analyzing and designing auctions and mechanisms. Students will learn the equilibrium concepts of strategic interaction in auction markets, compare auction formats in terms of efficiency and revenue, and become familiar with the principles of (Bayesian) mechanism design. Mechanism design can be understood as the deliberate design of games to achieve specific economic objectives.

The course is aimed at anyone interested in the game-theoretic modeling of markets and the design of economic incentive mechanisms—from theoretical foundations to practical applications in modern platform economies. The game-theoretic concepts required for the course will be explained during the class.