This module aims at providing students an introduction to theoretical and empirical fundamentals of market design. Students learn how to analyse various aspects of economic interaction and how to carefully interpret scientific insights in this field. Therefore required handling of theoretical models is practiced in the lecture. After taking this module students should be able to apply the methodical instruments to a specific issue of market design in practice to achieve a scientifically sound statement.

The lecture provides an introduction to the theoretical fundamentals of market design and the methodology of experimental economics. We discuss how theoretical and experimental analysis engage with each other – for example in price formation of auctions or organisation of markets. By means of particular case examples we show how political and economic consulting can profit from comprehensive analysis.