Modul

The assessment is carried out as partial exams (according to Section 4(2) of the examination regulation) of the single courses of this module, whose sum of credits must meet the minimum requirement of credits of this module. The assessment procedures are described for each course of the module seperately.

The overall grade of the module is the average of the grades for each course weighted by the credits and truncated after the first decimal.

The student

• knows coordination and motivation methods and analyzes them regarding their efficiency,
• classifies markets and describes the roles of the participants in a formal way,
• knows the conditions for market failure and knows and develops countermeasures,
• knows institutions and market mechanisms, their fundamental theories and empirical research results,
• knows the design criteria of market mechanisms and a systematical approach for creating new markets,
• models, analyzes and optimizes the structure and dynamics of complex business applications.

None

What are the conditions that make electronic markets develop, and how can one analyze and optimize such markets?

In this module, the selection of the type of organization as an optimization of transaction costs is treated. Afterwards, the efficiency of electronic markets (price, information and allocation efficiency) as well as reasons for market failure are described. Finally, motivational issues like bounded rationality and information asymmetries (private information and moral hazard), as well as the development of incentive schemes, are presented. Regarding the market design, especially the interdependencies of market organization, market mechanisms, institutions and products are described, and theoretical foundations are lectured.

Electronic markets are dynamic systems that are characterized by feedback loops between many different variables. By means of the tools of business dynamics, such markets can be modelled. Simulations of complex systems allow the analysis and optimization of markets, business processes, policies, and organizations.

Topics include

• classification, analysis, and design of markets
• simulation of markets
• auction methods and auction theory
• automated negotiations
• nonlinear pricing
• continuous double auctions
• market-maker, regulation, control

None

The total workload for this module is approximately 270 hours. For further information see German version.