Simon Fraser University
Econ 383
Fall 2015
Selected Topics: Auction Theory
Lectures (D100): Thursday 12:30–2:20, AQ3153
Instructor: Songzi Du, songzid@sfu.ca
Office Hours: Thursday 9:30–11:20 in WMC 4657, or by special appointment.
Class website: http://www.sfu.ca/~songzid/383/
TA information:
• Xin Li, xla142@sfu.ca. Office hours: Monday 12:30 — 2:30, WMC 3607.
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Syllabus
1.1
Course Description
This class introduces students to various formats of auctions and related mechanisms, which
are ubiquitous in the modern economy (eBay, Google AdWords, financial exchange, etc.).
We analyze behaviors and incentives in auctions with the tools of game theory. We also
play auction games in class using Moblab software. No prior knowledge of game theory is
assumed; to succeed in the class, the student must be good at basic calculus and probability.
Prerequisites: ECON 201 or ECON 301; BUEC 232 or STAT 270; and 60 units.
1.2
Grading
1. 10% Moblab participation
2. 40% midterm, Thursday Oct. 29, in class
3. 50% final, Monday Dec. 14, 8:30–11:30 AM
4. Practice problems, not graded
Half of the midterm points can be transferred to the final: you are graded according to
the higher of (1) 40% midterm and 50% final, or (2) 20% midterm and 70% final. The
participation points cover the various games that we play in class through Moblab; I will
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send emails with the instructions. To play on Moblab in class you need either a (Apple or
Android) smartphone or tablet, or a laptop computer; please email me if you do not have
any of these.
1.3
Textbook
Easley, David and Jon Kleinberg. Networks, Crowds, and Markets: Reasoning about a Highly
Connected World. Cambridge University Press, 2010.
(Our focus is on the “markets” part of the book.)
1.4
Assignments
Problems from the textbook will be assigned (but not graded). Solve (or at least make some
attempts at) these problems before the tutorial when the TA will discuss them. Do not
simply copy the TA’s solution from the tutorial. Treat these problems as practice for exams.
1.5
Course Outline
(Chapters from Easley and Kleinberg)
1. Basic game theory: Chapter 6 (optional: 6.7, 6.8 (mixed strategy), 6.10C (dynamic
games))
2. Auctions of a single good: Chapter 9
3. Auction of multiple goods / Matching: Chapter 10 (optional: 10.6 (Advanced Material))
4. VCG mechanism, online advertisement auction: Chapter 15 (optional: 15.9 (Advanced
Material))
5. Generalized second price auction: Chapter 15 (optional: 15.9 (Advanced Material))
6. Double auction experiments
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Course Policies
2.1
Communication
You are responsible for checking the class website and reading all emails sent to you by the
course staff. Website and emails may contain important announcements.
2.2
Tutorial
Attendance in tutorial is mandatory. The TA will discuss practice problems in the tutorial.
2.3
Exams (Midterm and Final)
The exams are closed-book. You may bring a simple (non-graphing) calculator. Write out
all steps in your reasoning and calculation when answering an exam question. If you want
your midterm exam to be eligible for a regrade, write in pen.
2.4
Missing an Exam
You will receive a “0” on that exam, with no makeup, except in the case of:
1. a medical emergency (you or immediate family): provide a complete Health Care
Provider Statement (see http://www.sfu.ca/students/health/resources/faq/sick-notes.
html) within 2 days of the exam — this is the ONLY form that I will accept, and
a scanned copy is fine; you must also email me within 24 hours of the start of
the final if you missed the final for a medical emergency. You can miss either the
midterm or the final, but not both, for medical emergency.
2. a documented reason that is approved by me for the assignments, quiz and midterm
at least ten days in advance. For missing the final, only religious reason can be
approved — email me by the end of the first week if you will miss the final exam
due to a religious reason.
If (1) or (2) is satisfied for the midterm, your (missing) midterm points will be transferred
to the final. If (1) or (2) is satisfied for the final, you can take a make-up final exam.
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2.5
Regrade Policy for Exams
If there is a mistake in totaling points, just show your exam to your TA and do not formally
request a regrade. Your grade will be changed automatically.
To request more points on a particular question, you must have answered the question in
pen (for midterm), and there must be no reason to believe that your solutions may have
been altered. You must also do BOTH of the following:
1. Detail, in writing, where and why you believe there was an error. Use separate sheets;
do not write on your exam booklet. Generic statements such as, but not limited to,
“my explanation was close” or “I deserve partial credit” do not satisfy this requirement:
you must be specific about which parts of your answer deserve more credit and how
they relate to a correct solution.
2. Submit your request (which must include all parts of your original exam booklet and
your explanations for regrade) to your TA or Professor Du within ten days from the
first day when the exam is handed back or available for viewing.
If your request does not satisfy both of the above criteria, it will be rejected.
Make sure to include ALL disputed questions on your request: you can submit at most one
request per exam.
Professor Du or a TA will regrade the listed question(s): your score may increase, stay
the same, or decrease. You will also lose points if Professor Du or the TA notices that
too many points have been awarded anywhere else on the exam.
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