Lectures


The information contained in these lecture notes was compiled by the course TAs in 2017 and 2018, including Takehiro Oyakawa, Gianluca Pane, Gabe Bankman-Fried, and Enrique Areyan-Viqueira. They based these notes in large part on the lecture notes and accompanying videos of Tim Roughgarden's CS 364A and CS 364B courses at Stanford, and Jason Hartline's Mechanism Design and Approximation textbook.

Lecture Topic Readings
0 Guidelines for Class Participation
Help Sessions Probability
Proof Techniques
Linear Programming
Markov Decision Processes and Reinforcement Learning
1 Introduction to Game Theory
Normal-Form Games
Battle of the Sexes
Beauty Contest
Essentials of Game Theory: Chapters 1 & 2 by Kevin Leyton-Brown and Yoav Shoham
2 Introduction to Auctions
Incomplete-information Games
Bayesian Battle of the Sexes
Second-price Auctions
First-price Auctions (Uniform Case)
Order Statistics and Revenue Equivalence
First-price Auction Bayes-Nash Equilibrium (General Case)
Essentials of Game Theory: Chapter 7 by Kevin Leyton-Brown and Yoav Shoham
3 Auction Design & the VCG Mechanism
The Revelation Principle
Independent Private Values
Auction Design Goals
The VCG Mechanism
Badminton and the Science of Rule Making
Real Badminton Rally
Fixed Badminton Rally
4 Welfare Maximization & Myerson's Lemma
Myerson's Payment Characterization
Applications of Myerson's Lemma
Welfare-Maximizing Auctions
Myerson's Lemma with Discrete Values
Myerson's Lemma (Stanford CS 364A)
5 Revenue Maximization & Myerson's Theorem
Myerson's Optimal Auction
Applications of Myerson's Theorem
Revenue-Maximizing Auctions
Regular and MHR Distributions
Myerson's Theorem (Stanford CS 364A)
6 Posted-Price Mechanisms
Inverse Transform Sampling
Introduction to Approximation Algorithms
Posted-Price Mechanisms: Approximating Revenue
Posted-Price Mechanisms: Approximating Welfare
Prior-Independent Approximations (Mechanism Design & Approximation)
7 Simple vs. Optimal Mechanisms
Prophet Inequality
Prophet Inequality and Bulow-Klemperer (Stanford CS 364A)
An Economic View of Prophet Inequalities
8 Iterative Auctions
Ascending Auctions
Combinatorial Auctions
EPIC Ascending Auctions
The Magic of Auctions
EPIC Auctions (Stanford CS 364B)
9 Walrasian Equilibrium
Unit-Demand Valuations and the CK Auction
Unit-Demand Valuations (Stanford CS 364B)
CK Auction (Stanford CS 364B)
10 Primal-Dual Auctions
Unit-Demand Valuations and the Demange, et al. Auction
Multi-item Auctions (Demange, Gale, and Sotomayor)
11 Clinching Auction
Gross Substitutes
Clinching Auction (Stanford CS 364B)
Gross Substitutes (Stanford CS 364B)
Final Project Advertising Exchanges
AdX Game
AdX Game, Formalized
AdX Agent Design
TAC AdX Game Specification (2012)