The ongoing advancements in information technology have revolutionized traditional business processes and given rise to electronic marketplaces. In contrast to physical marketplaces, electronic markets do not just evolve, but must be carefully designed, implemented and monitored and evaluated. Moreover electronic markets demand open and flexible platforms as well as adequate standards and information services. Future Market Engineers must therefore be able to consider the economic, legal and technological dimension of markets simultaneously. The lecture focuses on the discussion of (1) Microstructure, (2) IT Infrastructure, and (3) Business Structure of electronic markets. Hence, students will be taught the economic incentives that a market can impose on market participants, development models for implementing markets, and business models for the application of markets.

• Roth, A., The Economist as Engineer: Game Theory, Experimental Economics and Computation as Tools for Design Economics. Econometrica 70(4): 1341-1378, 2002.
• Weinhardt, C. ,Holtmann, C., Neumann, D., Market Engineering. Wirtschaftsinformatik, 2003.
• Wolfstetter, E., Topics in Microeconomics - Industrial Organization, Auctions, and Incentives. Cambridge, Cambridge University Press, 1999.
• Smith, V. "Theory, Experiments and Economics", The Journal of Economic Perspectives,Vol. 3, No. 1, 151-69 1989

The ongoing advancements in information technology have revolutionized traditional business processes and given rise to electronic marketplaces. In contrast to physical marketplaces, electronic markets do not just evolve, but must be carefully designed, implemented and monitored and evaluated. Moreover electronic markets demand open and flexible platforms as well as adequate standards and information services. Future Market Engineers must therefore be able to consider the economic, legal and technological dimension of markets simultaneously. The lecture focuses on the discussion of (1) Microstructure, (2) IT Infrastructure, and (3) Business Structure of electronic markets. Hence, students will be taught the economic incentives that a market can impose on market participants, development models for implementing markets, and business models for the application of markets.

None.

The total workload for this course is approximately 135.0 hours. For further information see German version.

The students

• understand the role of an economist as an engineer to design markets,
• compare different markets and market mechanisms to evaluate their efficiency,
• apply game theoretic modelling and mechanism design as well as auction theory for interdisciplinary evaluation.

The assessment consists of a written exam (60 min) (according to §4(2), 1 of the examination regulation). By successful completion of the exercises (according to §4(2), 3 of the examination regulation) up to 6 bonus points can be obtained. The bonus points only apply to the first and second exam of the semester in which they were obtained.