Tepper School of Business






45-871 Trade and Investment Strategy (draft for 2021/22)


Robert A. Miller  ramiller@cmu.edu











Assignment 1

Assignment 2

Take Home Exam

Strategic Play - Draft





Monday October 26:              

Wednesday October 28:        


Monday November 2:            

Wednesday November 4:      


Monday November 9:            

Wednesday November 11:    


Monday November 16:          

Wednesday November 18:    


Monday November 30:          

Wednesday December 2:       


Monday December 7:            

Wednesday December 9:       







1 Texas CD Auctions

2 Auction Formats


3 Revenue Equivalence

4 Procurement Contracts


5 Limit Order Markets

6 Liquidity and Market Dynamics


7 Arbitrage Pricing

8 Price Discovery


9 Lifecycle Consumption Smoothing

10 Uncertainty and Risk


11 Portfolio Investment

12 Governance






Discussion Questions on Texas CD Auctions

Discussion Questions on Auction Formats


Discussion Questions on Revenue Equivalence

Private Value Auctions for Multiple Units


Discussion Questions on Procurement Contracts



Discussion Questions on Limit Order Markets

Discussion Questions on Liquidity and Market Dynamics


Discussion Questions on Liquidity and Market Dynamics

Discussion Questions on Arbitrage Pricing







Bidding Frictions in Ascending Auctions

Auction game (right click to save)


First Price Sealed bid Auction Game (right click to save)

English Auction Game (right click to save)


Winning by Default: Why is There so Little Competition in Government Procurement?



Landing game (right click to save)



Recycling game (right click to save)

Estimating the Gains from Trade in Limit Order Markets



Currency game (right click to save)