Which of the following is a key goal of market design?
a. Maximizing government intervention in markets
b. Minimizing competition among buyers and sellers
c. Ensuring efficiency and fairness in market outcomes
d. Eliminating all forms of price discrimination
What does the term "double auction" refer to in market design?
a. An auction where two identical items are sold simultaneously
b. An auction where both buyers and sellers can submit bids and offers
c. A market structure with twice the number of participants
d. A type of auction only used for luxury goods
In market design, what does the term "matching market" typically involve?
a. Markets where buyers and sellers negotiate prices directly
b. Markets where participants are paired based on preferences
c. Markets focused solely on the trading of commodities
d. Markets where prices are determined by government authorities
Which concept in market design emphasizes the importance of information symmetry between buyers
and sellers?
a. Price discrimination
b. Market power
c. Asymmetric information
d. Monopolistic competition
What is the role of a clearinghouse in market design?
a. Setting maximum prices for goods and services
b. Facilitating the exchange of financial instruments
c. Regulating the market to prevent fraud
