- 19 Mar 2018
- Working Paper Summaries
Lone Wolves in Competitive Equilibria
The Lone Wolf Theorem states that any agent who is unmatched in one stable partnership assignment is unmatched in every stable assignment. This new study in matching theory broadens the Lone Wolf Theorem to exchange economies, with implications for the strategy-proof negotiation of job contracts.
- 19 Sep 2017
- Working Paper Summaries
An Invitation to Market Design
Effective market design can improve liquidity, efficiency, and equity in markets. This paper illustrates best practices in market design through three examples: the design of medical residency matching programs, a scrip system to allocate food donations to food banks, and the recent “Incentive Auction” that reallocated wireless spectrum from television broadcasters to telecoms.
- 14 Jun 2017
- Working Paper Summaries
Minimizing Justified Envy in School Choice: The Design of New Orleans' OneApp
TCC (Top Trading Cycles) and DA (deferred acceptance) are the two main algorithms for priority-based resource allocation. In 2012, the New Orleans school system tried to use TCC for school assignments, but dropped it after one year. The authors of this paper compared data from New Orleans and Boston in order to review designs and algorithms for better school assignment systems.
- 16 Sep 2015
- Research & Ideas
Can Applied Economics Save Homeless Puppies?
At a startup she co-founded while pursuing a doctorate in economics, Christine L. Exley is rescuing dogs with principles of market design. Open for comment; Comment(s) posted.
Trust and Disintermediation: Evidence from an Online Freelance Marketplace
Intermediaries such as brokers, distributors, and agents all face a risk of disintermediation, when two sides circumvent the intermediary and thus avoid the intermediary’s fees. This study of a large online freelance marketplace finds that enhanced user trust increases this risk, alongside other contributing factors like being geographically near one another, having easily divisible jobs, and clients themselves having high ratings.