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A Nobel laureate reveals the often surprising rules that govern a vast array of activities -- both mundane and life-changing -- in which money may play little or no role. If you've ever sought a job or hired someone, applied to college or guided your child into a good kindergarten, asked someone out on a date or been asked out, you've participated in a kind of market. Most of the study of economics deals with commodity markets, where the price of a good connects sellers and buyers. But what about other kinds of "goods," like a spot in the Yale freshman class or a position at Google? This is the territory of matching markets, where "sellers" and "buyers" must choose each other, and price isn't the only factor determining who gets what. Alvin E. Roth is one of the world's leading experts on matching markets. He has even designed several of them, including the exchange that places medical students in residencies and the system that increases the number of kidney transplants by better matching donors to patients. In Who Gets What -- And Why, Roth reveals the matching markets hidden around us and shows how to recognize a good match and make smarter, more confident decisions.
This book, which comprises eight chapters, presents a comprehensive critical survey of the results and methods of laboratory experiments in economics. The first chapter provides an introduction to experimental economics as a whole, with the remaining chapters providing surveys by leading practitioners in areas of economics that have seen a concentration of experiments: public goods, coordination problems, bargaining, industrial organization, asset markets, auctions, and individual decision making. The work aims both to help specialists set an agenda for future research and to provide nonspecialists with a critical review of work completed to date. Its focus is on elucidating the role of expe...
Two-sided matching provides a model of search processes such as those between firms and workers in labor markets or between buyers and sellers in auctions. This book gives a comprehensive account of recent results concerning the game-theoretic analysis of two-sided matching. The focus of the book is on the stability of outcomes, on the incentives that different rules of organization give to agents, and on the constraints that these incentives impose on the ways such markets can be organized. The results for this wide range of related models and matching situations help clarify which conclusions depend on particular modeling assumptions and market conditions, and which are robust over a wide range of conditions. 'This book chronicles one of the outstanding success stories of the theory of games, a story in which the authors have played a major role: the theory and practice of matching markets ... The authors are to be warmly congratulated for this fine piece of work, which is quite unique in the game-theoretic literature.' From the Foreword by Robert Aumann
How our lives are shaped not only by the choices we make, but by the choices we have. In many parts of life - jobs, housing, medical care, education, even a date on the internet - price is not the only determinant of who gets what. So how do the other processes that influence who gets which goods, jobs, university places and partners really work? In 'Who Gets What', Nobel Prize winning economist Alvin Roth uncovers the global rules of how markets allocate, how matchmaking shapes lives, where markets exist that we may not even realise, and how everything about our biggest experiences - from getting accepted at university or living where we want - can be better understood and negotiated when one understands the design of those matching markets. The distribution of rewards is often unfair, but it's seldom as random as it seems, and Roth reveals just how much of our life takes place in marketplaces, and leads us to a new understanding of who gets what and why. For fans of 'Freakonomics' and 'Thinking Fast and Slow' this groundbreaking book sheds new light on the politics of free markets, and how many things that we choose in life also must choose us.
This book shows how our lives are shaped not only by the choices we make, but by the choices we have. From dating, school and university applications to the job market, understand the most important decisions you'll ever make with insights from a Nobel Prize-winner. Who Gets What and Why is a piquantly written, mind-expanding exploration of the markets that matter most to many of us. If you've ever sought a job or hired someone, applied to university or guided your child into a good school, asked someone out on a date or been asked out, you have participated in a matching market. They are everywhere around us and account for some of the biggest technological successes of the decade, like Ube...
This book provides a comprehensive picture of the new developments in bargaining theory.
Composed in honour of the sixty-fifth birthday of Lloyd Shapley, this volume makes accessible the large body of work that has grown out of Shapley's seminal 1953 paper. Each of the twenty essays concerns some aspect of the Shapley value. Three of the chapters are reprints of the 'ancestral' papers: Chapter 2 is Shapley's original 1953 paper defining the value; Chapter 3 is the 1954 paper by Shapley and Shubik applying the value to voting models; and chapter 19 is Shapley's 1969 paper defining a value for games without transferable utility. The other seventeen chapters were contributed especially for this volume. The first chapter introduces the subject and the other essays in the volume, and contains a brief account of a few of Shapley's other major contributions to game theory. The other chapters cover the reformulations, interpretations and generalizations that have been inspired by the Shapley value, and its applications to the study of coalition formulation, to the organization of large markets, to problems of cost allocation, and to the study of games in which utility is not transferable.
This Handbook brings together the latest research on applied market design. It surveys matching markets: environments where there is a need to match large two-sided populations to one another, such as law clerks and judges or patients and kidney donors.
Testing economic propositions in laboratory experiments has proven a very fruitful research endeavor in recent years. This volume brings together the major contributors to experimental economics. The papers present their views on the way experiments should be done, on the power and limitations of the techniques, and on the areas in which experimentation could contribute substantially to our understanding of economic behavior. This book distills the main lessons from great experience in experimental work. It will be essential reading for all who wish to follow experimental work or who wish to do such work themselves.
Traditional economic theory studies idealized markets in which prices alone can guide efficient allocation, with no need for central organization. Such models build from Adam Smith’s famous concept of an invisible hand, which guides markets and renders regulation or interference largely unnecessary. Yet for many markets, prices alone are not enough to guide feasible and efficient outcomes, and regulation alone is not enough, either. Consider air traffic control at major airports. While prices could encourage airlines to take off and land at less congested times, prices alone do just part of the job; an air traffic control system is still indispensable to avoid disastrous consequences. With...