Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.
LEARNING OUTCOMES
This course provides an introduction into the theory and practice of pricing. Theoretical concepts from information economics and game theory are applied in a variety of applications with relevance to market design and real world managerial problems.
Credits: 6
Schedule: 07.09.2020 - 19.10.2020
Teacher in charge (valid 01.08.2020-31.07.2022): Pauli Murto
Teacher in charge (applies in this implementation): Pauli Murto
Contact information for the course (valid 14.08.2020-21.12.2112):
Teacher: Pauli Murto (pauli.murto@aalto.fi)
Teaching assistant: Riku Buri (riku.buri@aalto.fi)
CEFR level (applies in this implementation):
Language of instruction and studies (valid 01.08.2020-31.07.2022):
Teaching language: English
Languages of study attainment: English
CONTENT, ASSESSMENT AND WORKLOAD
Content
Valid 01.08.2020-31.07.2022:
Amongst the topics covered in the course are: Price discrimination,
failure of law of one price, bundling and versioning, revenue management,
auctions and market design.
Assessment Methods and Criteria
Valid 01.08.2020-31.07.2022:
- Exam
- Assignment
- Exercise sets
Applies in this implementation:
This year, there are four components in the course that are weighted as follows:
Reading assignments for the lectures: 20% of the grade
Case assignment (group work): 20% of the grade
Exercises: 20% of the grade
Exam: 40 % of the final grade
Workload
Valid 01.08.2020-31.07.2022:
The course has 4 learning elements: lectures, assignments, exercises and final examination.
Lectures and background readings (48h)
- Conceptual background
- Theory and applicationsAssignments (42 h)
- Problems with a real-case connection (themes will be given)
Exercises: (42h)
- Three exercise sessions.
- The students work independently on problem sets and hand them in before the exercise sessions.
Exam and preparation (28h)
DETAILS
Study Material
Valid 01.08.2020-31.07.2022:
There is no required textbook for the course. A list of readings is provided at the beginning of the course.
Applies in this implementation:
The main study material consists of the lecture slides and problem sets that will be posted on the course web-page as the course proceeds. There will also be some required readings for the reading assignments, and those will also be pointed out on the course web-page.
There is no official text book for the course, but there are many textbooks that cover some parts of the course. The following IO-textbooks are useful for much of the contents of the course:
- Belleflamme and Peitz: “Industrial Organization”, Cambridge University Press, 2015.
- Pepall, Richards, and Norman: “Contemporary Industrial Organization”, Wiley, 2011.
Solid knowledge of basic level microeconomics is assumed, so you are advised to consult any intermediate level microeconomics textbook whenever needed. Some basic knowledge of game theory is also needed. For this, you may consult for example:
- Robert Gibbons: “An Introduction to Applicable Game Theory”, Journal of Economic Perspectives, 11(1), 1997 (available through Aalto library)
or, for a full text book treatment:
- Robert Gibbons: “Game Theory for Applied Economists”, Princeton University Press.
Lecture slides will also point out some further supplementary readings.
Prerequisites
Valid 01.08.2020-31.07.2022:
Bachelor's level courses including 31C01100 Mathematical Methods for Economics (or equivalent methodological studies) completed.
SDG: Sustainable Development Goals
9 Industry, Innovation and Infrastructure
- Teacher: Murto Pauli