Overview
The focus of the lectures will be on foundations of mechanism design and applications of
mechanism design and game theory on Financial Markets. Topics include but are not limited to:
Implementation, Revelation Principle; Direct Mechanisms, Incentive Compatibility; First Price and Second Prim Auctions, Revelation Equivalence; Optimal Mechanisms; Efficient Mechanisms, Vickrey-Clarke¬Groves; Single Object Auction Design-Correlation (full surplus extraction); Bilateral Trading and Budget-Balance- Myerson-Satterthwaite Theorem; Common Value Auctions; Dynamic Mechanism Design; Credit Default Swaps; Treasury Auctions; Dynamic Trading Models.