ECON 287: Market Design in th Age of Transformative AI: Agents, Alignment, and Institutional Change (MS&E 365)

Course Description

The rapid deployment of large language models and autonomous AI agents reshapes how markets are structured, how participants interact, and the resulting market outcomes. These technologies raise important questions about incentives, information, and institutional design in environments where human and artificial agents coexist. This Ph.D.-level course examines how AI-based capabilities challenge and enrich traditional approaches to market design. We investigate when new analytical tools are required to understand AI-mediated markets and when classical models should be adapted, reinterpreted, or extended. Central questions include: In what ways does the presence of autonomous agents alter strategic behavior? How should markets be designed when AI systems act as complements or substitutes for human participants? How do we achieve alignment in marketplaces with AI agents? How can AI algorithms be incorporated into the design of marketplaces? This Ph.D.-level course surveys recent research from economics, operations research, and computer science to understand the models and analytical tools necessary to design and analyze markets in the age of transformative AI. The course encourages students to begin research projects in this emerging field. The course assumes basic knowledge in game theory and market design.