CS6280 Algorithms and Protocols for Internet Market

Part I

Course Duration: One semester
Credit Units: 3
Level: P6
Medium of Instruction: English
Prerequisites:
CS5222 Computer Networks and Internets or
CS5285 Information Security for eCommerce or
CS5286 Algorithms & Techniques for Web Searching, or equivalent
Precursors: Nil
Equivalent Courses: Nil
Exclusive Courses: Nil 
  
Part II

Course Aims
The aim of this course is to introduce students to an emerging and dynamic field in the interface of economics and computer science.  Concepts, principles, and applications of market mechanisms are introduced with a special focus on information goods created over the Internet.  Knowledge and skills for Internet market design and implementations are covered to provide the know-how in the making of the growing Internet Economics.

Course Intended Learning Outcomes (CILOs)
Upon successful completion of this course, students should be able to:

Teaching and Learning Activities (TLAs)
(Indicative of likely activities and tasks designed to facilitate students’ achievement of the CILOs. Final details will be provided to students in their first week of attendance in this course)

   Teaching pattern:
   Suggested lecture/tutorial/laboratory mix: 2 hrs. lecture; 1 hr. tutorial.

This course will focus on introducing the fundamental and state-of-the-art techniques in Internet market design, with a focus on markets of information goods.

The topics to be covered will be three major components: 1.) classical results in economic analysis of markets, 2.) digital goods and internet market models, 3.) advanced topics in applications of Internet markets.

The first component is fundamental but the last two parts may vary from year to year, depending on the trend and direction of this emerging field.  Instructor will introduce background information, fundamental methodologies and advanced topics.  Students are then required to have a comprehensive understanding of the field by learning the fundamentals through completing assignments/quizzes/examinations, gaining insight in the current development by either in the system development part, or writing an essay on important topics together with extensive readings of the literatures.

Assessment Tasks/Activities
(Indicative of likely activities and tasks designed to assess how well the students achieve the CILOs. Final details will be provided to students in their first week of attendance in this course)

   Examination duration:  2 hours
   Percentage of coursework, examination, etc.:  50% CW; 50% Exam

Grading of Student Achievement: Refer to Grading of Courses in the Academic Regulations (Attachment) and to the Explanatory Notes.
Grading pattern: Standard (A+, A, A-…F)
For a student to pass the course, at least 30% of the maximum mark for the examination must be obtained.

A formative assessment will be made on the students’ ability to apply tools and knowledge to different situation.  The equal weighting of coursework and examination assessment is due to the emphasis on both the practicality and the theory of market design models.

Part III

Keyword Syllabus:

Auction protocol, mechanism design, envy-free, incentive compatibility, Nash equilibrium, cooperative games, arbitrage, equilibrium, pricing, sponsored search, pay-per-click, advertisement allocation, generalized second price auction, market clearance, Walrasian equilibrium, cross-market arbitrage, revenue opimtization, buyers, sellers, market makers, advertisers, prediction market, information market, opinion aggregating, outcome forecasting, pari-mutuel, spam, phishing.

Syllabus