Syllabus

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: 05.09.2022 - 19.10.2022

Teacher in charge (valid for whole curriculum period):

Teacher in charge (applies in this implementation): Pauli Murto

Contact information for the course (applies in this implementation):

Teacher: Pauli Murto (pauli.murto@aalto.fi)

Teaching assistant: Riku Buri (riku.buri@aalto.fi)

CEFR level (valid for whole curriculum period):

Language of instruction and studies (applies in this implementation):

Teaching language: English. Languages of study attainment: English

CONTENT, ASSESSMENT AND WORKLOAD

Content

• valid for whole curriculum period:

  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 for whole curriculum period:

  • 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 for whole curriculum period:

  The course has 4 learning elements: lectures, assignments, exercises and final examination.

  Lectures and background readings (48h)
  - Conceptual background
  - Theory and applications 

  Assignments (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

• applies in this implementation

  The main study material consists of the lecture handouts 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-textbook is useful for much of the contents of the course:
  

  - Belleflamme and Peitz: “Industrial Organization”, Cambridge University Press, 2015.

  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 full text book treatments:

  - Robert Gibbons: “Game Theory for Applied Economists”, Princeton University Press.

  or

  - Martin Osborne: "An Introduction to Game Theory", Oxford University Press.

  Lecture notes will also point out some further supplementary readings.

  
  

Substitutes for Courses

• valid for whole curriculum period:

  Substitutes for Courses

Prerequisites

• valid for whole curriculum period:

  Prerequisites

SDG: Sustainable Development Goals

9 Industry, Innovation and Infrastructure

FURTHER INFORMATION

Further Information

• valid for whole curriculum period:

  Teaching Language : English

  Teaching Period : 2022-2023 Autumn I
  2023-2024 Autumn I

  Enrollment :

  Registration in Sisu. 

Description