Carnegie Mellon University

Market Design and Digital Economics

Advances in digital technology are permitting business and government to collect, store, process, and share information at ever greater speed and scale. Tech companies are becoming market designers: creating digital economic environments in which firms and households trade. Market design is a cutting edge area of economics that seeks to understand why some market arrangements succeed and others fail, to improve existing market arrangements, and to create blueprints for new markets that attain the goals of their designer. 

As businesses, entrepreneurs, and policymakers take advantage of technology to facilitate exchanges that were previously infeasible, market design provides crucial guidance on how to proceed. Applications include the design of auctions for the sale of advertising inventory, surge pricing systems for the trading of rides, review and reputation systems for enhancing customer trust, cryptocurrencies, and large-scale matching systems such as those for organ exchange and school choice.

The Market Design and Digital Economics concentration offers an exciting selection of courses that bring students to the frontier of this field.

 Courses in the concentration include:

  • 73-315: Market Design
  • 73-347: Game Theory Applications for Economics and Business
  • 73-353: Financial Regulation in the Digital Age
  • 73-365: Firms, Market Structures, and Strategy
  • 73-366: Designing the Digital Economy
  • 73-408: Law and Economics