by Dushko Josheski (Author), Elena Karamazova (Author), Mico Apostolov (Author)
This books covers three topics in mathematical economics and economics theory which are solved by the use of methods from mathematical statistics. It starts with a mechanism design that covers themes such as: Vickrey-Clarke-Groves Mechanism, Vickrey auction, Mechanism Design Illustrated in a Walrasian Example, Constructing Decentralized Mechanisms, from Parameter Indexed Product Structures: Transition to Message-Indexed Product Structures. Than it continues with Prospect theory that covers themes such as: Prospect theory and Cumulative prospect theory, and their use in explanation of overbidding. And the final essay is: Myerson-Satterthwaite theorem and asymmetric FPA auctions, that includes numerical solution of the asymmetric auctions