DESCRIPTION OF THE TOPICS TO BE STUDIED IN THE COURSE:



Auctions of goods or services. Bidding strategies in auctions. Auctions and collusion. Asymmetries between bidders. Internet auctions. Tenders for works, services and supplies. Auction design for a good or service.



Common value auctions. Auctions of multiple units of a good or service. Public debt auctions. Auctions of pollution permits. Design of multi-unit auctions.



Information asymmetries in markets. Hidden characteristic or type and adverse selection. Signalling. Separation through alternative offers. Mechanisms and responses developed in markets to solve problems caused by information asymmetries caused by information asymmetries.



CONTEXTUALISATION OF THE SUBJECT



In most of economic situations, there is no complete information and many times the information available to the different economic agents (individuals, families, companies, governments, etc.) is not complete.



The subject analyzes the relationships between economic agents in situations in which there are asymmetries of information between them and, also, the effects of information on the decisions of these agents. The analysis of auctions and tenders for works, services and supplies occupies a large part of the syllabus of the course.

- Understand the usefulness of auctions as an economic allocation mechanism and their general application.

- Understand the relevant aspects for the design of auctions.

- Ability to relate auction theory to current auctions and tenders for works, services and supplies.

currently carried out.

- Understand the information acquisition decisions of economic agents. Understand the effects of

to understand the effects of information arrival forecasts on the flexibility of economic agents' decisions.

- Understand the interaction between economic agents with information differences.

- Understand the responses that have been given in the markets to resolve information asymmetries.

- Capacity for analysis, resolution and synthesis of theoretical and practical problems.

- Development of critical and innovative thinking.

Topic 1: Economic analysis of auctions of a good or service.

Topic 2: Common value auctions, bidding and multi-unit auctions of a good.

Topic 3: Problems caused by information asymmetries between economic agents and mechanisms and responses developed in markets to solve these problems.

developed in markets to solve these problems.

In the classes, a complete reflection on the problems studied is carried out. For this purpose, formal analysis is combined with classroom discussion of existing mechanisms and experiences in the economic reality. Learning through problems to be solved in class is also part of the methodology used.

• Continuous Assessment System
• Final Assessment System
• Tools and qualification percentages:
  • Written test to be taken (%): 100

The evaluation of this subject will be carried out through continuous assessment, which consists of several mid-term exams and a final exam.



The final grade of the continuous assessment will be calculated according to the following

weightings:



* Mid-term exams whose date will be specified on the first day of class: 40%.



* Final exam to be taken on the date set by the centre: 60%.



Students who do not pass the partial exam of the continuous assessment will have to take a final exam which will comprise 100% of the mark for the subject and which will take place in January on the date scheduled by the centre.



Students who have not taken the partial exam and who, therefore, do not participate in the continuous assessment will be able to take the final exam which will comprise 100% of the mark for the subject and which will take place in January on the date scheduled by the centre.



If, for extra-academic reasons, the exam cannot be taken in person, the type of exams may be modified. In any case, these tests will be announced to students in advance.

In the second sit, the regulations established by the University of the Basque Country UPV/EHU will be applied and the grade obtained in a final exam which will be 100%.

BOOK: José María Usategui: Diseño de Subastas y Licitaciones: Una Introducción, 2020, Ed. Universidad del País Vasco/EHU.

DOCUMENT: José María Usategui: Información y su Valor. Nivel de Información Óptimo. Valor de la Flexibilidad, 2020
(en la página web de la asignatura en eGela se depositará este documento).

Basic bibliography

BOOK: José María Usategui: Diseño de Subastas y Licitaciones: Una Introducción, 2020, Ed. Universidad del País Vasco/EHU.



DOCUMENT: José María Usategui: Información y su Valor. Nivel de Información Óptimo. Valor de la Flexibilidad, 2020

(en la página web de la asignatura en eGela se depositará este documento).

In-depth bibliography

BOOK: Inés Macho y David Pérez Castrillo: Introducción a la Economía de la Información, 2005, Ed. Ariel.

BOOK: Paul Klemperer: Auctions: Theory and Practice. Princeton University Press, 2004..

Web addresses

OMIE (Operador del Mercado Ibérico de Electricidad): https://www.omie.es/
CNMC (Comisión Nacional de los Mercados y Competencia): https://www.cnmc.es/