Alvin Roth

26 results back to index


pages: 398 words: 105,032

Soonish: Ten Emerging Technologies That'll Improve And/or Ruin Everything by Kelly Weinersmith, Zach Weinersmith

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 23andMe, 3D printing, Airbnb, Alvin Roth, augmented reality, autonomous vehicles, connected car, double helix, Elon Musk, en.wikipedia.org, Google Glasses, hydraulic fracturing, industrial robot, information asymmetry, Kickstarter, low earth orbit, market design, megastructure, microbiome, moral hazard, multiplanetary species, orbital mechanics / astrodynamics, personalized medicine, placebo effect, Project Plowshare, QR code, Schrödinger's Cat, self-driving car, Skype, stem cell, Tunguska event

Imagine if every time you wanted to buy a meatball sub, you had to write a sonnet to the nice lady slinging cheese at Subway. This thou perceiv’st, which makes thy love more strong: Toast not the bread, for I must leave ere long. Historically, which markets are more money driven and which are more match driven has been sociological, with different cultures working it out in their own way. Dr. Alvin Roth (Nobel Prize–winner and author of Who Gets What—and Why) at Stanford invokes the concept of “repugnance” to explain why many markets are match driven. For cultural reasons, and perhaps biological reasons, many transactions are considered to be, well, repugnant when money comes into play. Adopting a child is okay. Buying a child is weird. Falling in love is okay. Paying for love is (in modern history) weird.

This probably wasn’t a good idea for them or for, you know, society, but we really appreciate it. Many of these experts were kind enough to read their relevant sections of the book, or (in a few cases) the whole damn thing. We thank Aysegul Gunduz, Gerwin Schalk, Eric Leuthardt, Beth Shapiro, George Church, Joff Silberg, Pamela Silver, Ramon Gonzalez, Marcela Maus, Steven Keating, Kirstin Matthews, Daniel Wagner, John Mendelsohn, Sandeep Menon, Jordan Miller, Gabor Forgacs, Alvin Roth, Erik Demaine, Cynthia Sung, Skylar Tibbits, Serena Booth, Alan Craig, Caitlin Fisher, Gaia Dempsey, Jonathan Ventura, Justin Werfel, Kirstin Petersen, Christopher Willis, Behrokh Khoshnevis, Richard Hull, Daniel Brunner, Bruce Lipschultz, Alex Wellerstein, Robert Kolasinski, Margaret Harding, Per Peterson, Jessica Lovering, Jason Derleth, Ron Turner, Michel van Pelt, Phil Plait, Daniel Faber, James Hansen, Martin Elvis, Karen Daniels, Steven Munger, Bryan Caplan, Noah Smith, Inna Vishik, Kevin Ringelman, John Timmer, Jonathan Dowling, Alan Winfield, Andrew Reece, Jeffrey Lipton, David White, Aindrila Mukhopadhyay, Sridhar Ramesh, Gerhard Schall, Nick Matteo, Cin-Ty Lee, Dana Glass, Omar Renteria, Javier Omar Garcia, Greg Lieberman, Brian Pickard, Michael Johnson, Scott Egan, Scott Solomon, Paul Robinette, Patricia Smith, Martin Weiner, Alexander Roederer, Rick Karnesky, Rhett Allain, Alexander Bolonkin, Lloyd James, James Lloyd, Ann Chang, Sean Leonard, Scott Aaronson, Rosemary Mosco, Aaron Sabolch, Joe Batwinis, Emily Lakdawalla, Steven Cavins, Jacob Stump, Linda Novitski, James Ashby, Ian McNab, Jennifer Drummond, James Cropcho, Daniela Rus, Kurt Schwenk, Chad Jones, James Redfearn, Kevin Berry, and Richard Prenzlow.

“Developing Robots That Impact Human-Robot Trust In Emergency Evacuations.” PhD thesis. Georgia Institute of Technology, 2015. Romanishin, J. W., Gilpin, K., and Rus, D. “M-Blocks: Momentum-Driven, Magnetic Modular Robots,” 4288–95. IEEE/RSJ International Conference on Intelligent Robots and Systems, Piscataway, N.J.: IEEE Publishing, 2013. Rose, David. Enchanted Objects: Innovation, Design, and the Future of Technology. New York: Scribner, 2015. Roth, Alvin E. Who Gets What—and Why: The New Economics of Matchmaking and Market Design. Boston: Eamon Dolan/Mariner Books, 2016. Rubenstein, M. “Emissions from the Cement Industry.” State of the Planet. Earth Institute. Columbia University. May 9, 2012. blogs.ei.columbia.edu/2012/05/09/emissions-from-the-cement-industry. Rubenstein, M., Cornejo, A., and Nagpal, R. “Programmable Self-Assembly in a Thousand-Robot Swarm.”


pages: 350 words: 103,988

Reinventing the Bazaar: A Natural History of Markets by John McMillan

"Robert Solow", accounting loophole / creative accounting, Albert Einstein, Alvin Roth, Andrei Shleifer, Anton Chekhov, Asian financial crisis, congestion charging, corporate governance, corporate raider, crony capitalism, Dava Sobel, Deng Xiaoping, experimental economics, experimental subject, fear of failure, first-price auction, frictionless, frictionless market, George Akerlof, George Gilder, global village, Hernando de Soto, I think there is a world market for maybe five computers, income inequality, income per capita, informal economy, information asymmetry, invisible hand, Isaac Newton, job-hopping, John Harrison: Longitude, John von Neumann, Kenneth Arrow, land reform, lone genius, manufacturing employment, market clearing, market design, market friction, market microstructure, means of production, Network effects, new economy, offshore financial centre, ought to be enough for anybody, pez dispenser, pre–internet, price mechanism, profit maximization, profit motive, proxy bid, purchasing power parity, Ronald Coase, Ronald Reagan, sealed-bid auction, second-price auction, Silicon Valley, spectrum auction, Stewart Brand, The Market for Lemons, The Nature of the Firm, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, War on Poverty, Xiaogang Anhui farmers, yield management

“Labor Markets in Professional Sports.” Economic Journal 111, 47–68. Roth, Alvin E. 1984. “The Evolution of the Labor Market for Medical Interns and Residents.” Journal of Political Economy 92, 991–1016. ————. 1996. “Report on the Design and Testing of an Applicant Proposing Matching Algorithm, and Comparison with the Existing NPRM Algorithm.” www.economics.harvard.edu/~aroth/phase1.html. Roth, Alvin E., and Ockenfels, Axel. 2000. “Last Minute Bidding and the Rules for Ending Second-Price Auctions.” Unpublished, Harvard University, Cambridge. Roth, Alvin E., and Peranson, Elliot. 1999. “A Redesign of the Matching Market for American Physicians: Some Engineering Aspects of Economic Design.” American Economic Review 89, 748–780. Roth, Alvin E., Prasnikar, Vesna, Okuno-Fujiwara, Masahiro, and Zamir, Shmuel. 1991.

The hospitals and the interns would have preferred that the transacting be done close to the graduation date, when more was known and so better matches were possible, but the free-for-all market drove them to contract early. A hospital and an intern reaching an early deal did not take account of the costs they were imposing on the other hospitals and interns. A hospital that decided to wait and see how candidates developed risked losing them to other hospitals. The hospitals eventually designed some rules for the marketplace, with the help of economist Alvin Roth.15 Now, each intern is given a list of hospitals and ranks them in order of preference. Similarly, each hospital ranks the interns. These rankings are loaded into a computer program, which computes the match of interns to hospitals, going as far as is feasible toward meeting the preferences of both the interns and the hospitals. The market’s rules are subject to a reality check. Interns and hospitals are free to ignore the computer’s matches and contract independently.


The Ethical Algorithm: The Science of Socially Aware Algorithm Design by Michael Kearns, Aaron Roth

23andMe, affirmative action, algorithmic trading, Alvin Roth, Bayesian statistics, bitcoin, cloud computing, computer vision, crowdsourcing, Edward Snowden, Elon Musk, Filter Bubble, general-purpose programming language, Google Chrome, ImageNet competition, Lyft, medical residency, Nash equilibrium, Netflix Prize, p-value, Pareto efficiency, performance metric, personalized medicine, pre–internet, profit motive, quantitative trading / quantitative finance, RAND corporation, recommendation engine, replication crisis, ride hailing / ride sharing, Robert Bork, Ronald Coase, self-driving car, short selling, sorting algorithm, speech recognition, statistical model, Stephen Hawking, superintelligent machines, telemarketer, Turing machine, two-sided market, Vilfredo Pareto

While there are many details that make this problem more complicated than medical residency matching, there are again practical, scalable algorithms that maximize the efficiency of the solution found, where here efficiency means maximizing the total number of compatible transplants that occur globally—ideally across all hospitals, not just within a single one. For his algorithmic and game-theoretic insights on this problem (and the others we have mentioned, including the medical residency match) and his efforts to convince the medical community and hospitals that it was worth the effort to pool their transplant donors, recipients and data, Alvin Roth was awarded the 2012 Nobel Prize in economics—along with the aforementioned Lloyd Shapley, whose early work initiated the era of algorithmic matching. Algorithmic Mind Games We’ve now seen a variety of modern settings (and potentially future ones, such as self-driving cars) in which game-theoretic modeling can provide both conceptual guidance and algorithmic prescriptions to problems in which a large number of individuals or institutions have complex and potentially competing preferences.

We’d like to warmly thank Sarah Humphreville, our editor at Oxford University Press, for her careful and helpful readings and suggestions, which have always been on the mark. Many thanks to Joellyn Ausanka of OUP for her expert handling of the production process. We thank Eric Henney of Basic Books for his early encouragement of this project and our agent, Jim Levine, for helping us navigate the Byzantine world of trade publishing. We are grateful for comments on early drafts from Thomas Kearns, Yuriy Nevmyaka, Alvin Roth, and Ben Roth. Even though both of us are many years past our doctoral studies, we were deeply and forever influenced by the outstanding guidance of our own dissertation advisors, Avrim Blum (AR) and Les Valiant (MK). A transition every graduate student in our research areas must make is that from merely solving given problems to choosing one’s own projects and to developing research “taste”—deciding what’s important to work on from a broader, nontechnical perspective.

See also precise specification goal racial data and bias and algorithmic violations of fairness and privacy, 96 and college admissions models, 77 and dating preferences, 94–97 and “fairness gerrymandering,” 86–89 and fairness issues in machine learning, 65–66 and forbidden inputs, 66–67 and Google search, 14–15 and lending decisions, 191 and scope of topics covered, 19 and unique challenges of algorithms, 7 RAND Corporation, 100 randomization and differential privacy, 36–37, 40–44, 47 random lending, 69–71 random sampling, 18–19, 40 and self-play in machine learning, 131–32 and trust in data administrators, 45–47 rare events, 144 regulation of data and algorithms. See laws and regulations reidentification of anonymous data, 22–31, 33–34, 38 relationship status data, 51–52 religious affiliation data, 51–52 reproducibility (replication) crisis, 19–20, 156–60 residency hiring, 126–30 resume evaluation, 60–61 Rock-Paper-Scissors, 99–100, 102–3 Roth, Alvin, 130 RuleFit algorithms, 173 runs on banks, 95–96 sabotage, 99–100 Sandel, Michael, 177–78 SAT tests and fairness vs. accuracy of models, 65, 74–80 and predictive modeling, 8 and word analogy problems, 57 and word embedding models, 59–60 scale issues, 139, 143–45, 192. See also adaptive data analysis scams, 137–41 Schelling, Thomas, 98 scientific research and literature and adaptive data analysis, 159–65 game theoretical view of, 136 and generative adversarial networks, 135 on harms caused by algorithms, 14–15 image recognition competition, 145–49 “power pose” research, 141–43 scale and adaptivity issues, 143–45 and scope of topics covered, 19–20 and torturing data, 156–59 and weaknesses of aggregate data, 31 search engines, 61–62 selective reporting of performance, 140–41, 149 self-driving cars, 112, 174–77, 180 selfishness and self-interest and dating apps, 95–96 and equilibrium states, 98–99 and game theory, 97–98 and navigation problems, 105–6 selfish equilibrium, 110–11, 113, 115, 123 and traffic optimization problems, 105–6, 108–9 self-play in machine learning, 131–34 self-programming, 6.


pages: 500 words: 145,005

Misbehaving: The Making of Behavioral Economics by Richard H. Thaler

"Robert Solow", 3Com Palm IPO, Albert Einstein, Alvin Roth, Amazon Mechanical Turk, Andrei Shleifer, Apple's 1984 Super Bowl advert, Atul Gawande, Berlin Wall, Bernie Madoff, Black-Scholes formula, business cycle, capital asset pricing model, Cass Sunstein, Checklist Manifesto, choice architecture, clean water, cognitive dissonance, conceptual framework, constrained optimization, Daniel Kahneman / Amos Tversky, delayed gratification, diversification, diversified portfolio, Edward Glaeser, endowment effect, equity premium, Eugene Fama: efficient market hypothesis, experimental economics, Fall of the Berlin Wall, George Akerlof, hindsight bias, Home mortgage interest deduction, impulse control, index fund, information asymmetry, invisible hand, Jean Tirole, John Nash: game theory, John von Neumann, Kenneth Arrow, Kickstarter, late fees, law of one price, libertarian paternalism, Long Term Capital Management, loss aversion, market clearing, Mason jar, mental accounting, meta analysis, meta-analysis, money market fund, More Guns, Less Crime, mortgage debt, Myron Scholes, Nash equilibrium, Nate Silver, New Journalism, nudge unit, Paul Samuelson, payday loans, Ponzi scheme, presumed consent, pre–internet, principal–agent problem, prisoner's dilemma, profit maximization, random walk, randomized controlled trial, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Coase, Silicon Valley, South Sea Bubble, Stanford marshmallow experiment, statistical model, Steve Jobs, Supply of New York City Cabdrivers, technology bubble, The Chicago School, The Myth of the Rational Market, The Signal and the Noise by Nate Silver, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, transaction costs, ultimatum game, Vilfredo Pareto, Walter Mischel, zero-sum game

Most European countries (as well as Canada) provide health care to their citizens as a basic right, and even in America, where this view is resisted in certain quarters, we do not turn uninsured accident victims away at the emergency room. Similarly, no country permits a free market in organs, although Iran does have a market for kidneys. For most of the world, the idea that a rich person who needs a kidney should be allowed to pay a poor person to donate one is considered “repugnant,” to use the word favored by economist Alvin Roth to describe such market transactions. In many situations, the perceived fairness of an action depends not only on who it helps or harms, but also on how it is framed. To test these kinds of effects, we would ask two versions of a question to different groups of respondents. For example, consider this pair of questions, with the differences highlighted in italics: A shortage has developed for a popular model of automobile, and customers must now wait two months for delivery.

But they also know that if the money were left in an open box where anyone could take all of it, someone eventually would. Economists need to adopt as nuanced a view of human nature as the farmers. Not everyone will free ride all the time, but some people are ready to pick your pocket if you are not careful. I keep a photograph of one of those farm stands in my office for inspiration. 16 Mugs At some point during the Vancouver year, the economist Alvin Roth, who was then deeply involved with experimental methods, organized a conference at the University of Pittsburgh. The goal was to present the first drafts of papers that would later be published in a small book called Laboratory Experimentation in Economics: Six Points of View. The contributors were major figures in the experimental economics community including Al, Vernon Smith, and Charlie Plott.

“Experiments with N-Person Social Traps I: Prisoner’s Dilemma, Weak Prisoner’s Dilemma, Volunteer’s Dilemma, and Largest Number.” Journal of Conflict Resolution 32, no. 3: 457–72. Romer, David. 2006. “Do Firms Maximize? Evidence from Professional Football.” Journal of Political Economy 114, no. 2: 340–65. Ross, Lee, David Greene, and Pamela House. 1977. “The ‘False Consensus Effect’: An Egocentric Bias in Social Perception and Attribution Processes.” Journal of Experimental Social Psychology 13, no. 3: 279–301. Roth, Alvin E. 2007. “Repugnance as a Constraint on Markets.” Journal of Economic Perspectives 21, no. 3: 37–58. ———, ed. 1987. Laboratory Experimentation in Economics: Six Points of View. Cambridge, UK: Cambridge University Press. Rozeff, Michael S., and William Kinney. 1976. “Capital Market Seasonality: The Case of Stock Returns.” Journal of Financial Economics 3, no. 4: 379–402. Russell, Thomas, and Richard H.


pages: 421 words: 110,406

Platform Revolution: How Networked Markets Are Transforming the Economy--And How to Make Them Work for You by Sangeet Paul Choudary, Marshall W. van Alstyne, Geoffrey G. Parker

3D printing, Affordable Care Act / Obamacare, Airbnb, Alvin Roth, Amazon Mechanical Turk, Amazon Web Services, Andrei Shleifer, Apple's 1984 Super Bowl advert, autonomous vehicles, barriers to entry, big data - Walmart - Pop Tarts, bitcoin, blockchain, business cycle, business process, buy low sell high, chief data officer, Chuck Templeton: OpenTable:, clean water, cloud computing, connected car, corporate governance, crowdsourcing, data acquisition, data is the new oil, digital map, discounted cash flows, disintermediation, Edward Glaeser, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, financial innovation, Haber-Bosch Process, High speed trading, information asymmetry, Internet of things, inventory management, invisible hand, Jean Tirole, Jeff Bezos, jimmy wales, John Markoff, Khan Academy, Kickstarter, Lean Startup, Lyft, Marc Andreessen, market design, Metcalfe’s law, multi-sided market, Network effects, new economy, payday loans, peer-to-peer lending, Peter Thiel, pets.com, pre–internet, price mechanism, recommendation engine, RFID, Richard Stallman, ride hailing / ride sharing, Robert Metcalfe, Ronald Coase, Satoshi Nakamoto, self-driving car, shareholder value, sharing economy, side project, Silicon Valley, Skype, smart contracts, smart grid, Snapchat, software is eating the world, Steve Jobs, TaskRabbit, The Chicago School, the payments system, Tim Cook: Apple, transaction costs, Travis Kalanick, two-sided market, Uber and Lyft, Uber for X, uber lyft, winner-take-all economy, zero-sum game, Zipcar

Additionally, platform governance rules must pay special heed to externalities. These are endemic in network markets, since, as we’ve seen when examining network effects, the spillover benefits users generate are a source of platform value. Understanding this forces a shift in corporate governance from a narrow focus on shareholder value to a broader view of stakeholder value. Market designer and Nobel Prize-winning economist Alvin Roth described a model of governance that uses four broad levers to address market failures.19 According to Roth, a well-designed market increases the safety of the market via transparency, quality, or insurance, thereby enabling good interactions to occur. It provides thickness, which enables participants from different sides of a multisided market to find one another more easily. It minimizes congestion, which hampers successful searches when too many people participate or low quality drives out high.

Zopa responded by publicizing the fact that its loan default rate had fallen to 0.2 percent from 0.6 percent three years earlier.34 Such is the power of well-designed platform architecture. Architecture can also be used to prevent and correct market failures. Recall the middlemen on eBay who took advantage of seller misspellings. Although one might lament the lost opportunity for the hapless sellers to complete the deal, these middlemen provided market liquidity (“thickness” in Alvin Roth’s formulation) through the process known as arbitrage. If no one bids on misspelled items, the interaction never happens—so arbitrageurs can be viewed as providing a valuable service. Yet the existence of arbitrage opportunities also highlights market inefficiencies. eBay now uses automated systems to provide spelling assistance, so sellers can have more confidence that they’ll receive what their items are worth.

., 245–46 rate of conversion to sale, 197 ratings, 157–58, 265 razors-and-blades strategy, 109–10 Real Audio, 222 real estate market, 9, 12, 62, 124, 237, 277, 282 RealNetworks, 222 real-time processing, 247, 252–53 recipients, 100, 101, 104, 105 recruiters, 50, 51, 119, 218–19 redBus, 73, 95 Reddit, 5, 36, 47, 93, 173 Regulation 2.0, 253–56 regulatory capture, 235–37, 257 RelayRides, 9, 10, 67, 230 research and development (R & D), 14, 33, 275 reservations, 8–9, 90, 95, 101, 137, 142, 194 resources: allocation of, 6, 15, 70–71, 199, 200, 298–99 control of, 208–9, 212, 227 intensive use of, 263–64, 278, 289 model based on, 208–10, 213, 216 restaurants, 36, 37, 76, 90, 91, 95, 101, 113, 120, 142, 170, 194, 259 retail industry, 12, 63, 77, 82–83, 85, 89, 111, 123–24, 141, 145, 157–58, 204–7, 240–49, 251, 264 revenue grabs, 121, 157–58 rewards (incentives), 82, 101, 102, 166, 173–74, 182, 227 R/GA, 76 ride-sharing services, 2, 9, 12, 16–18, 25, 30, 36, 37, 49–50, 60–62, 67, 115, 175, 190, 227, 231, 233, 250–54, 258–59, 264, 278, 287, 297 Ries, Eric, 199, 201–2 Rifkin, Jeremy, 286 Roman military campaigns, 183, 237 Roth, Alvin, 164, 171 royalties, 72, 122 Rudder, Christian, 26–27 Sacks, David, 17, 18 Safaricom, 277–78 safety net, 280–81, 288 Saks Fifth Avenue, 275 sales conversion rate, 191–92 Salesforce, x, 55, 145, 245–46, 267 sales forces, 42–44, 73–74, 91, 125, 145 sales tax, 248–49 same-side effects, 29–32, 34, 298 Samsung, xi, 86, 137, 270–71, 295 San Francisco, 1–2, 18, 61, 233, 278, 281–83 SAP, vii, x, 155, 173–75, 216, 219, 241 scrapers (automated software), 91–92, 107 search engine optimization, 120–21, 145, 191, 297 search engines, 24–25, 40, 120–21, 145, 190, 191, 197–98, 215, 216, 242, 297 Sears, Roebuck, 207 seeding strategy, 18, 92–93, 105 self-driving cars, 62 self-governance, 176–80, 182, 246, 253–56 self-serve advertising, 131, 133–34 semiconductor industry, 225 senders, 100, 101–2, 105 sensor data, 246, 286 service interfaces, 176–78, 221 Shapiro, Carl, 19, 240–41 shared model, 137, 138, 140–41, 154–55 shareholders, 11, 164 sharing economy, 10, 298–99 Shleifer, Andrei, 236–37, 238 shopping malls, 123–24 ShopRunner, 206–7 ShopThis!


pages: 267 words: 72,552

Reinventing Capitalism in the Age of Big Data by Viktor Mayer-Schönberger, Thomas Ramge

accounting loophole / creative accounting, Air France Flight 447, Airbnb, Alvin Roth, Atul Gawande, augmented reality, banking crisis, basic income, Bayesian statistics, bitcoin, blockchain, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, Cass Sunstein, centralized clearinghouse, Checklist Manifesto, cloud computing, cognitive bias, conceptual framework, creative destruction, Daniel Kahneman / Amos Tversky, disruptive innovation, Donald Trump, double entry bookkeeping, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, Ford paid five dollars a day, Frederick Winslow Taylor, fundamental attribution error, George Akerlof, gig economy, Google Glasses, information asymmetry, interchangeable parts, invention of the telegraph, inventory management, invisible hand, James Watt: steam engine, Jeff Bezos, job automation, job satisfaction, joint-stock company, Joseph Schumpeter, Kickstarter, knowledge worker, labor-force participation, land reform, lone genius, low cost airline, low cost carrier, Marc Andreessen, market bubble, market design, market fundamentalism, means of production, meta analysis, meta-analysis, Moneyball by Michael Lewis explains big data, multi-sided market, natural language processing, Network effects, Norbert Wiener, offshore financial centre, Parag Khanna, payday loans, peer-to-peer lending, Peter Thiel, Ponzi scheme, prediction markets, price anchoring, price mechanism, purchasing power parity, random walk, recommendation engine, Richard Thaler, ride hailing / ride sharing, Sam Altman, Second Machine Age, self-driving car, Silicon Valley, Silicon Valley startup, six sigma, smart grid, smart meter, Snapchat, statistical model, Steve Jobs, technoutopianism, The Future of Employment, The Market for Lemons, The Nature of the Firm, transaction costs, universal basic income, William Langewiesche, Y Combinator

In such markets, a central clearinghouse often collects preference information from all market participants and uses advanced matching algorithms to connect suitable market participants to transact. The goal is to produce as many suitable matches as possible. This sort of matching, too, has recently improved significantly, thanks to enhanced algorithms and a better understanding of which matching algorithm works best for which type of market. In 2012, two of the world’s leading experts in matching, Lloyd Shapley and Alvin Roth, were awarded the Nobel Prize in economics for their theories on the subject. For transactions with huge externalities, data-rich markets could utilize a similar approach; and the richness of their data streams would facilitate the sophisticated matching that needs to be done by the clearinghouse. But it would require that everyone on the market agree beforehand on a set of principles concerning how the matching will work, and that these principles are strictly adhered to (lest the market participants lose trust in the matching system).

See automation/machine learning Mainichi Shimbun, 109 Malone, Thomas, 7 MAN, 182 market failure, reducing, 6 markets, 35–57 Amazon as, 87–88 chaotic, unplanned nature of, 160 choice limitations in, 13–14 communicative coordination and, 26–28, 30–33 comparison of firms and, 28, 111 competition between firms and, 30, 107 concentrated, 161–169, 171, 217 data-rich (see data-rich markets) decentralization in (see decentralization) feedback effects and, 160–175 fintechs and, 153 historical improvements in, 51–52 irrational decision-making in, 42–44 key difference between firms and, 32–33, 90 limitations of, 63 network effects and, 162–166 for noneconomic activities, 49–50 physical design of, 160–161 prediction, 50–51 resilience of, 39 scale effects and, 162–166 shift from firms to, 10–11, 30–32, 125–126 success of, 4, 49–50, 222 thick, 2, 82–83, 164, 213 Martin, Walt, 181–182 Marx, Karl, 143, 162 Mason, Vicki, 42 Massachusetts Institute of Technology (MIT), 7, 142, 159, 184, 195, 220 matching, 8–9, 11, 64, 66, 71–85, 212 algorithms for (see algorithms) centralized, 74 complexity of task, 43–44 in conventional vs. data-rich markets, 70–71 decentralized, 74, 127 fintechs and, 151–152 firms and, 127–129 nonmarket providers of, 75–76 variety of contexts for, 74–75 Max Planck Institute for Human Development, 105 McAfee, Andrew, 184 McDonald’s, 215 McGovern, George, 190 McNamara, Robert, 99–100 Medici, Cosimo de’ the Elder, 92, 93 Medici family, 91, 93 Mercedes-Benz, 110 Merrill, Douglas, 151 Merrill Lynch, 155 metadata, 66 Micro Ventures, 152–153 Microsoft, 165, 166, 169 Microsoft Imagine Cup, 75 Minyons club, 17–20 mobile phones iPhone, 136, 164 Kerala fishermen and, 36–37 payment business and, 147 Model T Ford, 29, 98, 162 money, 4, 45–57, 63, 64, 143–144, 212 advantages of using, 45–49 banks’ decreased use of, 136–137 data as a substitute for, 148–149 future role of, 5, 149 historical forms of currency, 47–48 importance of linked to utility, 45 informational function of, 48–49 intrinsic value not required for, 48 market efficiency improved by, 47–49 move from physical to virtual, 48 role of capital affected by demise of, 141 signaling with, 142 work unbundled from, 203–206, 218 See also capital; price monopolies, 30, 203 moon landing, 22, 159 Mosaic, 189 motorcycle manufacturing, 30–32, 33 Musk, Elon, 78, 189 My Years with General Motors (Sloan), 99 MySpace, 166 NASDAQ Composite Index, 196 National Aeronautics and Space Administration (NASA), 22 national champions, 30 National Oceanic and Atmospheric Administration, 133 negative income tax, 190 Netflix, 74, 75, 161, 196, 209 Netherlands, 191 network effects, 162–166 New York Central Railroad, 96 New York Times, 88–89, 208–209 Nixon, Richard, 190 Nobel Prize winners, 39, 74, 190 nominal tax rate, 198 Nordstrom, 211 Northwestern University, 83, 194 oligopolies, 30 Omidyar, Pierre, 1 ontology, 67–70, 81, 84, 136 defined, 67 firms and, 128 labor market and, 204 Organization for Economic Cooperation and Development (OECD) countries, 28 organized labor, 205 Orwell, George, 179 Otto, 181–183 Paine, Thomas, 190 Parthenon Group, 207 participatory policy measures, 186, 188–189, 190, 193, 200–202 patent system, 199 payment solutions businesses, 146–147, 149 PayPal, 135–136, 146, 189 Pearson, 69 Peep Trade, 76, 152 peer-to-peer lending, 152–153 Pentland, Sandy, 142 Peruzzi family, 91 Piketty, Thomas, 186 Pinterest, 210 poker, 59–62 populism, 13, 186 post-price retailers, 209 prediction markets, 50–51 preferences complexity of processing, 43–44 fintech extraction of, 151–152 improved means of capturing, 8, 64, 71–72, 76–81 standard language for comparing, 64 See also matching price, 7, 45–57 data-rich markets’ advantages over, 70–71, 72, 136–137 deemphasis on, 3, 122, 129, 136–137, 138, 212 detailed information lacking in, 4, 52–56 future role of, 5 information condensed by, 4, 46–47, 48–49, 63, 65 internal talent management and, 128 markets and, 36 volatility of, 36 PriceBlink, 52 PriceGrabber, 52 PriOS, 115 privacy issues, 145, 174 Procter & Gamble, 128 profits, 195–197 progressive consumption tax (PCT), 198 progressive data-sharing mandate, 12, 171, 199, 203 choice expanded by, 217 explained, 167–169 Prüfer, Jens, 167 punch-card tabulator, 96 Qin, Emperor, 24 Rack Habit, 207–208 Rawls, John, 223 regulatory measures for banks and financial institutions, 139–140 for feedback problems, 171–175 research and development, 196 resource scarcity, overcoming, 220–221 retail sector, 138, 207–212 retirement savings, 143–144, 195 returns on investments, 195 Robinhood Markets, 146 robo tax, 186–187 Rognlie, Matthew, 194 Ron, Lior, 182–183 Roth, Alvin, 74 Ryanair, 112 Saberr, 75 salary bands, 128, 129 salt (as currency), 47 Samsung, 196 Sandholm, Tuomas, 60, 62 SAP, 100 scale effects, 162–166 Scania, 182 Schottmüller, Christoph, 167 Schumpeter, Joseph, 120 scientific management, 96 Second Payment Service Directive (European Union), 140 Seedcamp, 75 self-employment, 185–186 Shapley, Lloyd, 74 Shepherd, Alistair, 75 shipping industry, 213 SigFig, 3, 151–152, 153, 156 silver standard, 48 Simon, Herbert, 104 Simon, Julian, 220 Siri, 79, 164 Six Sigma, 112 Sloan, Alfred P., 98–99, 101 Sloan School of Business, 220 Smith, Adam, 27, 143, 223 Snapchat, 166 Social Security, 192 SoFi, 150, 151 Soll, Jacob, 91 Solomon, Madi, 69–70 SOP.


pages: 288 words: 16,556

Finance and the Good Society by Robert J. Shiller

Alvin Roth, bank run, banking crisis, barriers to entry, Bernie Madoff, buy and hold, capital asset pricing model, capital controls, Carmen Reinhart, Cass Sunstein, cognitive dissonance, collateralized debt obligation, collective bargaining, computer age, corporate governance, Daniel Kahneman / Amos Tversky, Deng Xiaoping, diversification, diversified portfolio, Donald Trump, Edward Glaeser, eurozone crisis, experimental economics, financial innovation, financial thriller, fixed income, full employment, fundamental attribution error, George Akerlof, income inequality, information asymmetry, invisible hand, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, land reform, loss aversion, Louis Bachelier, Mahatma Gandhi, Mark Zuckerberg, market bubble, market design, means of production, microcredit, moral hazard, mortgage debt, Myron Scholes, Nelson Mandela, Occupy movement, passive investing, Ponzi scheme, prediction markets, profit maximization, quantitative easing, random walk, regulatory arbitrage, Richard Thaler, Right to Buy, road to serfdom, Robert Shiller, Robert Shiller, Ronald Reagan, selection bias, self-driving car, shareholder value, Sharpe ratio, short selling, Simon Kuznets, Skype, Steven Pinker, telemarketer, Thales and the olive presses, Thales of Miletus, The Market for Lemons, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, Vanguard fund, young professional, zero-sum game, Zipcar

They are using nancial and economic theory to create “trades” that leave people better o . In so doing they are humanizing nance and making it more relevant to human welfare. Sometimes these people are called nancial engineers, since what they do seems analogous to what mechanical or electrical engineers do. At their best, market designers have the same practical common sense and drive to create, and the same grasp of basic science, that successful engineers have. Alvin Roth is a professor specializing in market design in the Economics Department at Harvard University. One of his most notable achievements was constructing a simple market for kidney transplants. Many thousands of people in need of a transplant die each year for failure to nd a suitable donor. The problem has been that few people would volunteer to donate a kidney: the operation is painful and the result may pose complications.

Panic: The Betrayal of Capitalism by Wall Street and Washington. Minneapolis: Vigilante. Rhodes, Gillian. 2006. “The Evolutionary Psychology of Facial Beauty.” Annual Review of Psychology 57:199–226. Ross, Lee. 1977. “The Intuitive Psychologist and His Shortcomings: Distortions in the Attribution Process.” Advances in Experimental Social Psychology 10:173–220. Ross, Stephen A. 1976. “Options and E ciency.” Quarterly Journal of Economics 90(1):75–89. Roth, Alvin E., Tayfun Sonmez, and M. Utku Unver. 2005. “Pairwise Kidney Exchange.” Journal of Economic Theory 125(2):151–88. Russett, Bruce, and John Oneal. 2001. Triangulating Peace: Democracy, Interdependence and International Organizations. New York: W. W. Norton. Saint-Exupéry, Antoine de. 2000 [1943]. The Little Prince, trans. Richard Howard. Orlando, FL: Harcourt. Salacuse, Jeswald W. 2003. “Corporate Governance, Culture and Convergence: Corporations American Style or with a European Touch?”

See also insurance risk taking: animal spirits and, 172–73, 175, 177; by bankers, 38; in careers, 141; by CEOs, 23; gambling, 140, 160–61, 168, 175; impulse to, 139–40, 151, 160; inequality and, 140–42; by investment managers, 34, 35; personality differences, 140, 141–42; respect for, 140–41; selection and, 173; by traders, 57. See also speculation Ritschl, Albrecht, 158 RMBSs. See residential mortgage–backed securities Rockefeller, John D., Sr., 105, 164–65 Rockefeller family, 164–65 Rogoff, Kenneth, 2 Rome, ancient, 39, 144, 147, 178 Romney, George, 22 Roosevelt, Franklin D., 109, 202, 210, 212–13, 233–34 Roosevelt family, 234, 256n7 Ross, Stephen A., 78 Roth, Alvin, 69–70 Rubin, Jerry, 137–38 Russett, Bruce, 228–29 Russia: dating services, 74; economic change in, 2, 3; perceptions of businesspeople, 166. See also Soviet Union Saint-Exupéry, Antoine de, The Little Prince, 124–25 salaries. See executive compensation; rewards salespeople, financial, 80, 85, 97, 235 Samuelson, Paul A., 185 Sarkozy, Nicolas, 2 Saverin, Eduardo, 49 Save the Children, 200 savings: encouraging, 214; lottery-linked, 177; rates of, 153–54; retirement, 214 savings banks, 44 SBA.


pages: 272 words: 83,798

A Little History of Economics by Niall Kishtainy

"Robert Solow", Alvin Roth, British Empire, Capital in the Twenty-First Century by Thomas Piketty, car-free, central bank independence, clean water, Corn Laws, creative destruction, credit crunch, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, Eugene Fama: efficient market hypothesis, first-price auction, floating exchange rates, follow your passion, full employment, George Akerlof, greed is good, Hyman Minsky, inflation targeting, invisible hand, John Nash: game theory, John von Neumann, Joseph Schumpeter, Kenneth Arrow, loss aversion, market clearing, market design, means of production, moral hazard, Nash equilibrium, new economy, Occupy movement, Pareto efficiency, Paul Samuelson, prisoner's dilemma, RAND corporation, rent-seeking, Richard Thaler, rising living standards, road to serfdom, Robert Shiller, Robert Shiller, Ronald Reagan, sealed-bid auction, second-price auction, The Chicago School, The Great Moderation, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, trade route, Vickrey auction, Vilfredo Pareto, washing machines reduced drudgery, wealth creators, Winter of Discontent

We’d be horrified at the thought of poor people dying because they couldn’t afford the kidneys that rich people could easily buy. That’s why the sale of organs is illegal. Doctors decide which patients will benefit from transplants and then try to find them suitable donors, but patients often have to wait a long time. In the United States in 2006, 70,000 patients were waiting for kidneys but fewer than 11,000 transplants were carried out and 5,000 people died or became too sick to have one. The American economist Alvin Roth (b. 1951) used economic principles to come up with a way of increasing the number of organs available for transplant without people buying and selling them. Roth’s solution is based on the fact that humans have two kidneys but can survive on a single one, so if your brother needed a kidney you might decide to give him one of yours. The problem is that when the doctors do tests on you and your brother, they might find that your kidney isn’t compatible – that it isn’t a ‘match’ for him.

(i), (ii) Kerala (India) (i) Keynes, John Maynard (i), (ii), (iii), (iv), (v), (vi) Keynesian theory (i), (ii), (iii) Klemperer, Paul (i) Krugman, Paul (i), (ii) Kydland, Finn (i), (ii) labour (i) in ancient Greece (i) and market clearing (i) women as unpaid (i) labour theory of value (i), (ii) laissez-faire (i) landowners (i), (ii), (iii) Lange, Oskar (i) law of demand (i), (ii) leakage of spending (i) Lehman Brothers (i) leisure class (i) leisured, women as (i) Lenin, Vladimir Ilyich (i), (ii) Lerner, Abba (i) Lewis, Arthur (i) Lincoln, Abraham (i) List, Friedrich (i) loss aversion (i) Lucas, Robert (i), (ii) MacKay, Charles (i) Macmillan, Harold (i) macro/microeconomics (i) Malaysia, and speculators (i) Malthus, Thomas (i), (ii), (iii) Malynes, Gerard de (i), (ii) manufacturing (i), (ii) division of labour (i) see also Industrial Revolution margin (i) marginal costs (i), (ii) marginal principle (i), (ii), (iii) marginal revenue (i) marginal utility (i), (ii) market, the (i) market clearing (i) market design (i) market failure (i), (ii), (iii), (iv) ‘Market for Lemons, The’ (Akerlof) (i) market power (i) markets, currency (i), (ii) Marshall, Alfred (i), (ii), (iii), (iv), (v) Marx, Karl (i), (ii), (iii), (iv), (v), (vi), (vii) Marxism (i) mathematics (i), (ii), (iii) means of production (i) mercantilism (i), (ii) Mesopotamia (i) Mexico, pegged currency (i) micro/macroeconomics (i) Microsoft (i) Midas fallacy (i) minimum wage (i) Minsky, Hyman (i) Minsky moment (i), (ii) Mirabeau, Marquis de (i), (ii), (iii) Mises, Ludwig von (i), (ii), (iii), (iv) mixed economies (i), (ii) Mobutu Sese Seko (i) model villages (i) models (economic) (i), (ii), (iii), (iv) modern and traditional economies (i), (ii) monetarism (i) monetary policy (i), (ii) money (i), (ii), (iii), (iv), (v), (vi) see also coins; currency money illusion (i) money wages (i) moneylending see usury monopolies (i), (ii) monopolistic competition (i), (ii) monopoly, theory of (i) monopoly capitalism (i), (ii), (iii) monopsony (i) moral hazard (i), (ii) multiplier (i) Mun, Thomas (i), (ii), (iii) Muth, John (i) Nash, John (i), (ii) Nash equilibrium (i) national income (i), (ii), (iii), (iv), (v) National System of Political Economy (List) (i) Nelson, Julie (i) neoclassical economics (i) net product (i) Neumann, John von (i) New Christianity, The (Saint-Simon) (i) new classical economics (i) New Harmony (Indiana) (i) New Lanark (Scotland) (i) Nkrumah, Kwame (i), (ii) non-rival good (i) Nordhaus, William (i), (ii) normative economics (i), (ii) Obstfeld, Maurice (i) Occupy movement (i) oligopolies (i) opportunity cost (i), (ii) organ transplant (i) output per person (i) Owen, Robert (i) paper money (i), (ii) Pareto, Vilfredo (i) pareto efficiency (i), (ii) pareto improvement (i) Park Chung-hee (i) partial equilibrium (i) pegged exchange rate (i) perfect competition (i), (ii), (iii), (iv), (v) perfect information (i) periphery (i) phalansteries (i) Phillips, Bill (i) Phillips curve (i), (ii), (iii), (iv), (v), (vi), (vii) physiocracy (i), (ii) Pigou, Arthur Cecil (i), (ii), (iii) Piketty, Thomas (i), (ii), (iii) Plato (i), (ii), (iii) policy discretion (i) Ponzi, Charles (i) Ponzi finance (i) population and food supply (i), (ii), (iii) of women (i) positive economics (i) poverty (i), (ii), (iii), (iv), (v) in Cuba (i) Sen on (i) and utopian thinkers (i) Prebisch, Raúl (i) predicting (i) Prescott, Edward (i), (ii) price wars (i), (ii) primary products (i) prisoners’ dilemma (i) private costs and benefits (i) privatisation (i) productivity (i), (ii), (iii) profit (i), (ii), (iii), (iv) and capitalism (i), (ii) proletariat (i), (ii) property (private) (i), (ii), (iii), (iv), (v) and communism (i), (ii), (iii), (iv) protection (i), (ii), (iii) provisioning (i) public choice theory (i) public goods (i) quantity theory of money (i) Quesnay, François (i) Quincey, Thomas de (i), (ii) racism (i) Rand, Ayn (i) RAND Corporation (i), (ii) rate of return (i), (ii) rational economic man (i), (ii), (iii), (iv), (v) rational expectations (i), (ii), (iii), (iv), (v) real wages (i), (ii), (iii) recession (i) and governments (i), (ii), (iii) Great Recession (i) Keynes on (i), (ii) Mexican (i) redistribution of wealth (i) reference points (i) relative poverty (i) rent on land (i), (ii), (iii) rents/rent-seeking (i) resources (i), (ii) revolution (i), (ii), (iii), (iv) Cuban (i) French (i), (ii), (iii), (iv) Russian (i), (ii) Ricardo, David (i), (ii), (iii) risk aversion (i) Road to Serfdom, The (Hayek) (i) robber barons (i) Robbins, Lionel (i) Robinson, Joan (i) Roman Empire (i) Romer, Paul (i) Rosenstein-Rodan, Paul (i) Roth, Alvin (i), (ii) rule by nature (i) rules of the game (i) Sachs, Jeffrey (i) Saint-Simon, Henri de (i) Samuelson, Paul (i), (ii) savings (i), (ii) and Say’s Law (i) Say’s Law (i) scarcity (i), (ii), (iii), (iv), (v), (vi) Schumpeter, Joseph (i), (ii) sealed bid auction (i) second price auction (i) Second World War (i) securitisation (i) self-fulfilling crises (i) self-interest (i) Sen, Amartya (i), (ii) missing women (i), (ii), (iii) services (i) shading bids (i), (ii) shares (i), (ii), (iii), (iv), (v), (vi) see also stock market Shiller, Robert (i), (ii) signalling (i) in auctions (i) Smith, Adam (i), (ii), (iii), (iv), (v) social costs and benefits (i) Social Insurance and Allied Services (Beveridge) (i) social security (i), (ii) socialism (i), (ii), (iii), (iv), (v) socialist commonwealth (i) Socrates (i) Solow, Robert (i) Soros, George (i), (ii), (iii) South Africa, war with Britain (i) South Korea, and the big push (i) Soviet Union and America (i) and communism (i), (ii) speculation (i) speculative lending (i) Spence, Michael (i) spending government (fiscal policy) (i), (ii), (iii), (iv), (v), (vi), (vii) and recessions (i), (ii) and Say’s Law (i) see also investment stagflation (i), (ii) Stalin, Joseph (i) standard economics (i), (ii), (iii), (iv) Standard Oil (i) Stiglitz, Joseph (i) stock (i) stock market (i), (ii), (iii), (iv), (v) stockbrokers (i) Strassmann, Diana (i), (ii) strategic interaction (i), (ii) strikes (i) subprime loans (i) subsidies (i), (ii) subsistence (i) sumptuary laws (i) supply curve (i) supply and demand (i), (ii), (iii), (iv) and currencies (i) and equilibrium (i), (ii) in recession (i), (ii), (iii) supply-side economics (i) surplus value (i), (ii) Swan, Trevor (i) tariff (i) taxes/taxation (i) and budget deficit (i) carbon (i) and carbon emissions (i) and France (i) and public goods (i) redistribution of wealth (i) and rent-seeking (i) technology as endogenous/exogenous (i) and growth (i) and living standards (i) terms of trade (i) Thailand (i) Thaler, Richard (i) theory (i) Theory of the Leisure Class, The (Veblen) (i) Theory of Monopolistic Competition (Chamberlain) (i) Thompson, William Hale ‘Big Bill’ (i) threat (i) time inconsistency (i), (ii) time intensity (i) Tocqueville, Alexis de (i) totalitarianism (i) trade (i), (ii), (iii) and dependency theory (i) free (i), (ii), (iii) trading permit, carbon (i) traditional and modern economies (i), (ii) transplant, organ (i) Treatise of the Canker of England’s Common Wealth, A (Malynes) (i) Tversky, Amos (i), (ii) underdeveloped countries (i) unemployment in Britain (i) and the government (i) and the Great Depression (i) and information economics (i) and Keynes (i) and market clearing (i) and recession (i) unions (i), (ii) United States of America and free trade (i) and growth of government (i) industrialisation (i) and Latin America (i) Microsoft (i) recession (i), (ii) and the Soviet Union (i) and Standard Oil (i) stock market (i) wealth in (i) women in the labour force (i) unpaid labour, and women (i) usury (i), (ii), (iii) utility (i), (ii), (iii), (iv) utopian thinkers (i), (ii) Vanderbilt, Cornelius (i), (ii) Veblen, Thorstein (i), (ii), (iii) velocity of circulation (i), (ii) Vickrey, William (i) wage, minimum (i) Walras, Léon (i) Waring, Marilyn (i) wealth (i) and Aristotle (i), (ii) and Christianity (i) Piketty on (i) and Plato (i) Smith on (i) Wealth of Nations, The (Smith) (i), (ii) welfare benefits (i), (ii), (iii), (iv) welfare economics (i) Who Pays for the Kids?


pages: 287 words: 82,576

The Complacent Class: The Self-Defeating Quest for the American Dream by Tyler Cowen

affirmative action, Affordable Care Act / Obamacare, Airbnb, Alvin Roth, assortative mating, Bernie Sanders, Black Swan, business climate, business cycle, circulation of elites, clean water, David Graeber, declining real wages, deindustrialization, desegregation, Donald Trump, drone strike, East Village, Elon Musk, Ferguson, Missouri, Francis Fukuyama: the end of history, gig economy, Google Glasses, Hyman Minsky, Hyperloop, income inequality, intangible asset, Internet of things, inventory management, knowledge worker, labor-force participation, low skilled workers, Marc Andreessen, Mark Zuckerberg, medical residency, meta analysis, meta-analysis, obamacare, offshore financial centre, Paul Samuelson, Peter Thiel, purchasing power parity, Richard Florida, security theater, sharing economy, Silicon Valley, Silicon Valley ideology, Skype, South China Sea, Steven Pinker, Stuxnet, The Great Moderation, The Rise and Fall of American Growth, total factor productivity, Tyler Cowen: Great Stagnation, upwardly mobile, Vilfredo Pareto, working-age population, World Values Survey

Matching probably has improved in the middle tiers of the market and at the bottom, even if not many people can be matched to the very top in terms of quality. There is some evidence that patients are better matched to their hospitals over time, and in a way that is bringing slight improvements in life expectancy.19 Some of the benefits from better matching in health care and education are not apparent at first glance. Alvin Roth, an experimental economist now at Stanford University, won a Nobel Prize in part for using economic theory to come up with better algorithms for matching, and these methods are supposed to be robust across many realms in a quite general sense. His Nobel Prize was an especially deserved one, as it reflects the spirit of our times more than was recognized in 2012, the year he won. Some of Roth’s work focused on the allocation of doctors to medical residencies, which is fundamentally a problem of matching.

See Affordable Care Act Occupy Wall Street movement oil industry oil price shock (1973) On the Road (Kerouac) outsourcing pantheism Pareto, Vilfredo patents Patriot Act pets philanthropy Pinker, Steven Pissarides, Christopher play, outdoor polarization policing political science poverty and mobility and segregation Princeton University prison riots productivity and cities diffusion problem firm-specific productivity and innovation and the internet and matching and mobility productivity per worker hour total factor productivity (TFP) worker productivity profiling progress and the Complacent Class and democracy and innovation and mobility model of history and segregation progressivism protests. See social protests and riots Putin, Vladimir Putnam, Robert D. R&D (research and development) race relations racism Rauch, Jonathan Reagan, Ronald Reformation, Protestant regional specialization Republican Party riots. See social protests and riots Roeder, Oliver Roth, Alvin Russia. See also Soviet Union S&P 500 safety and security Samuelson, Paul Sanders, Bernie Schwartz, Barry Second World War security. See safety and security segregation and college towns by education and culture by income and matching by race by social class Seinfeld (sit-com) Selma to Montgomery marches September 11, 2001 sexuality. See also LGBT community Sharp, Katherine Silicon Valley social media and authentic self Facebook and harassment and innovation and matching and Millennial Generation and social protest Twitter YouTube social protests and riots Baltimore riots civil rights movement and the courts Ferguson riots and higher education history of Occupy Wall Street movement prison riots and stability Stonewall riot and Vietnam War Watts riots Social Security Soviet Union.


pages: 337 words: 103,522

The Creativity Code: How AI Is Learning to Write, Paint and Think by Marcus Du Sautoy

3D printing, Ada Lovelace, Albert Einstein, Alvin Roth, Andrew Wiles, Automated Insights, Benoit Mandelbrot, Claude Shannon: information theory, computer vision, correlation does not imply causation, crowdsourcing, data is the new oil, Donald Trump, double helix, Douglas Hofstadter, Elon Musk, Erik Brynjolfsson, Fellow of the Royal Society, Flash crash, Gödel, Escher, Bach, Henri Poincaré, Jacquard loom, John Conway, Kickstarter, Loebner Prize, mandelbrot fractal, Minecraft, music of the spheres, Narrative Science, natural language processing, Netflix Prize, PageRank, pattern recognition, Paul Erdős, Peter Thiel, random walk, Ray Kurzweil, recommendation engine, Rubik’s Cube, Second Machine Age, Silicon Valley, speech recognition, Turing test, Watson beat the top human players on Jeopardy!, wikimedia commons

In fact, the algorithms seem to be better than we are on our own: recent research published in the Proceedings of the National Academy of Sciences looked at 19,000 people who married between 2005 and 2012 and found that those who met online were happier and had more stable marriages. The first algorithm to win its creators a Nobel Prize, originally formulated by two mathematicians, David Gale and Lloyd Shapley, in 1962, used a matching algorithm to solve something called ‘the Stable Marriage Problem’. Gale, who died in 2008, missed out on the award, but Shapley shared the prize in 2012 with the economist Alvin Roth, who saw the importance of the algorithm not just to the question of relationships but also to social problems including assigning health care and student places fairly. Shapley was amused by the award: ‘I consider myself a mathematician and the award is for economics,’ he said at the time, clearly surprised by the committee’s decision. ‘I never, never in my life took a course in economics.’ But the mathematics he cooked up has had profound economic and social implications.

.: A Song of Ice and Fire/Game of Thrones 56, 120 Martinez, David 123 Maslon LLP 109 Massive Attack 226–8, 229 Mathematical Society of France 279 mathematics: AI and proving mathematical theorems 233–53; AI as threat to job of mathematician 5–7, 17, 43, 151–5, 233; algorithms, development of and 44–65, 45, 50, 51, 52, 58, 59, 60, 63; art and see art; art of 150–68; birth of 44–5; chess and see chess; complexity of, increasing 176–85; computers as partners in proving deep theorems 169–85; creativity and 3–4, 5, 7, 10, 12, 14, 15–16, 17, 18, 98, 150–2, 181–2; drugs and 181–2; Go and see Go; language and 269, 276, 278, 279–80, 284, 289, 291–3, 297; limits of human 176–80; music and see musical composition; narrative art of 241–53, 250; origins of 155–68; pattern recognition and 20–1, 155–6; proof, mathematical game of 152–5; proof, narrative quality of 245–50; proof, origins of 161–8; proof, social context of 182–3; pure and applied, separation of 182; recommender algorithms and 84–6, 85, 86, 89–90; surprise, element of and 248–50, 250; tales, generating new mathematical 291–3 Mayans 157 McCarthy, John 24 McEwan, Ian 306 McHugh, Tommy 133, 134 medieval polyphony 187, 189 MENACE (algorithm) 24 Messiaen, Olivier 90; Quartet for the End of Time 205 Métamatics 119 metric spaces 240–1 Metropolitan Police, British 77 Michie, Donald 2, 24 Microsoft 72, 73, 127, 131; Kinect/Xbox 72–6, 79, 81–2; Microsoft Research Cambridge 174–6; Rembrandt project 127–32 Millennium Prize Problems 152, 172 Minsky, Marvin 2 Mitchell, Kerry: ‘Fractal Art Manifesto’ 114 Mitsuku (chatbot) 258–9, 260 Mizar Mathematical Library 236–41, 244, 246, 253 Modus Ponens 162 Modus Tollens 162–3 Monbiot, George: Out of the Wreckage 296 Monet, Claude 10, 138 Monster Symmetry Group 10, 177 Morris, Desmond 107 Mozart, Wolfgang Amadeus 2, 3, 5, 10, 13, 194, 197, 198, 200, 227, 230, 231, 280; Musikalisches Würfelspiel 194–5 Muggleton, Stephen 291 Murray, Sean 116 muses 13–14 musical composition 185, 186–233; algorithms and composition, correlation between 186–9; Bach as first musical coder 189–94, 195, 197, 198, 200, 201, 205 see also Bach, Johann Sebastian; DeepBach and 207–12; Emmy and 195–207, 197, 199; MduS and 186–8; mathematics and 186–212, 214–18, 216, 217, 221, 222, 223, 230; Mozart’s Musikalisches Würfelspiel and 194–5; songwriting 213–32 see also songwriting; Turing Test and 200–2, 220–1 Musil, Robert 276 Musk, Elon 25 Namagiri 14 Nam June Paik 119 NaNoGenMo (National Novel Generation Month) 282–3 Narrative Science 293, 295 Naruto (macaque) 108–9 National Novel Writing Month 282 Nature 28, 152 Neanderthals 104, 231 Nees, Georg 110, 111–12, 113, 114, 117, 126 Nekrasov, Pavel 215, 217 Netflix 44, 83, 91, 135, 286; prize challenge 83–9, 85, 86, 91 neural networks 24, 27, 33, 68–70, 68, 70, 93–4, 272–3 new/novelty, creativity and 3, 4, 7–8, 12, 13, 16, 17, 40–3, 102–3, 109, 138–41, 140, 167–8, 238–9, 291–3, 299, 301 Newton, Isaac 92, 171, 239 New York Times, The 29, 139 Nielsen, Frank 210 Nietzsche, Friedrich 169 Nobel Prize 16, 57, 179 No-Free Lunch Theorem 95 No Man’s Sky (game) 116 Norton, Simon 18 number theory 4, 11, 14 Oates, Joyce Carol 15 Obrist, Hans-Ulrich 102, 106, 146, 147, 148 Odd Order Theorem 175 OKCupid 57 On-Line Encyclopaedia of Integer Sequences 291–2 Orwell, George 303 Osborn, Alex 301 Oulipo (Ouvroir de littérature potentielle) 278–80 over-fitting 74–6, 75 Oxford University 19, 53–4, 110, 155, 171, 181, 234, 235 Pachet, François 210, 214, 218–24, 225 Pacific Journal of Math 175 Page, Larry 48–9, 51–2, 57 ‘Painting Fool, The’ 119–22, 200, 291 Paleolithic flutes 231 Parker, Charlie 218, 222–3 Pask, Gordon 119 pattern recognition 6, 20–1, 99–101, 155–6, 186–7 Peña, Javier López 55 pendulum, chaotic 123–5 People for the Ethical Treatment of Animals (PETA) 108–9 perceptron 68–70, 68, 70 Perelman, Grigori 11, 152 Philips Company 119 Picasso, Pablo 5, 9, 11, 13, 111, 135, 136–7, 138–9, 142, 222; Les Demoiselles d’Avignon 138–9 Pissarro, Camille 10, 138 Pixar 115, 116, 124 place value system 157–8 Plato 13–14, 105 PlayStation 4 116 Pleiades 156 Poincaré Conjecture 11, 152 Poincaré, Henri 11, 150, 152, 244–5, 250 polis 166 ‘Pollockizer, The’ 124 Pollock, Jackson 117–19, 148, 302; MduS attempts to fake work 123–5; No. 5, 1948 123 prime numbers 11, 44, 53, 154, 164, 165, 166–7, 175, 178, 205, 239, 245–6, 247–8, 249, 251, 277, 285, 292 proairetic code 251–2 probability 27, 37, 71, 82, 91–2, 96, 101, 182, 214–18, 219, 229, 252, 270, 284 Proceedings of the Natural Academy of Sciences 57 profnath 62–5 prolation canon 187, 206 Propp, Vladimir 290 PropperWryter 290 Pushkin, Alexander 265; Eugene Onegin 214, 217–18 quadratic equations 75, 159–60, 161 quantum physics 53, 92, 112–13, 227–8, 235 Queneau, Raymond 278, 279; 100,000,000,000,000 Poems 279–80 Quill 293 Ramanujan 14 Raskin, Jef 117 Rayner, Alex 145 recommender algorithms 44, 79–80, 81–90, 85, 86, 91 Reddit 54 Redmond, Michael 38 refactorable numbers 292–3 Reflection (app) 229 reinforcement learning 27, 96–7 Rembrandt van Rijn 3, 106, 126–31, 132, 143, 151, 301; AI attempts to recreate works of 127–32; Tobit and Anna 130–1 Renoir, Pierre-Auguste 10, 122 Rescue on Fractals (game) 115–16 Richter, Gerhard: 4900 Farben 99–103, 106, 146, 155 Riedl, Mark 286, 287, 306 Riemann Hypothesis 178 robots 32, 71, 94, 119, 129, 262, 271–3 Rogers, Carl 255; ‘Towards a Theory of Creativity’ 301–2 Roman Empire 157 Romantic movement, musical 12, 13 Rosenblatt, Frank 24 Roth, Alvin 57 Royal Society 9, 233; Computing Laboratory 277 Rutgers University 132–3, 138, 139 Rutter, Brad 261, 262 Saleh, Babek 134 Samuel, Arthur 24 Scape (app) 229 scenius 15 Scheherazade-IF 286–8, 306 Schoenberg, Arnold 11, 190, 205, 223 Schöffer, Nicholas: CYSP 1 118–19 Schwartz, Oscar 282 Scriabin, Alexander 199, 199 Scrubs (TV series) 284 Searle, John 164, 273–5 Sedol, Lee 22, 30, 32, 33–40, 97, 131, 219–20 Seeker, The (algorithmic novel) 282–3, 305 Seinfeld (TV series) 284 Serpentine Gallery, London 99–102, 105, 106, 146, 147, 155 Shakespeare, William 5, 16, 127; As You Like It 303; Othello 3, 23 Shalosh B.


pages: 353 words: 98,267

The Price of Everything: And the Hidden Logic of Value by Eduardo Porter

Alvin Roth, Asian financial crisis, Ayatollah Khomeini, banking crisis, barriers to entry, Berlin Wall, British Empire, capital controls, Carmen Reinhart, Cass Sunstein, clean water, Credit Default Swap, Deng Xiaoping, Edward Glaeser, European colonialism, Fall of the Berlin Wall, financial deregulation, Ford paid five dollars a day, full employment, George Akerlof, Gordon Gekko, guest worker program, happiness index / gross national happiness, housing crisis, illegal immigration, immigration reform, income inequality, income per capita, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Jean Tirole, John Maynard Keynes: technological unemployment, Joshua Gans and Andrew Leigh, Kenneth Rogoff, labor-force participation, laissez-faire capitalism, longitudinal study, loss aversion, low skilled workers, Martin Wolf, means of production, Menlo Park, Mexican peso crisis / tequila crisis, Monkeys Reject Unequal Pay, new economy, New Urbanism, peer-to-peer, pension reform, Peter Singer: altruism, pets.com, placebo effect, price discrimination, price stability, rent-seeking, Richard Thaler, rising living standards, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, Silicon Valley, stem cell, Steve Jobs, Stewart Brand, superstar cities, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, trade route, transatlantic slave trade, ultimatum game, unpaid internship, urban planning, Veblen good, women in the workforce, World Values Survey, Yom Kippur War, young professional, zero-sum game

The discussion about attitudes toward egg donations draws from the Ethics Committee of the American Society for Reproductive Medicine, “Financial Compensation of Oocyte Donors,” Fertility and Sterility, Vol. 88, No. 2, August 2007, pp. 305-309; David Tuller, “Payment Offers to Egg Donors Prompt Scrutiny,” New York Times, May 10, 2010; United Kingdom Human Fertilization and Embryology Authority, “Egg Donation and Egg Sharing” (at www.hfea.gov.uk/egg-donation-and-egg-sharing.html. , accessed 07/18/2010); and Alvin Roth, op. cit. The discussion about opposition to dwarf tossing in France comes from Alvin Roth, op. cit. Brigitte Bardot’s campaign against Koreans’ taste for dog meat is discussed in William Saletan, “Wok the Dog,” Slate, January 16, 2002. Data on kidney transplants are found in Scientific Registry of Transplant Recipients (at www.ustransplant.org/csr/current/nationalViewer.aspx?o=KI, accessed 07/18/2010). The discussion on how kidney sales would increase the supply of kidneys for transplant draws from Gary S.

Data on tipping patterns in the United States come from Daniel Kahneman, Jack Knetsch, and Richard Thaler, “Fairness as a Constraint on Profit Seeking: Entitlements in the Market,” American Economic Review, Vol. 76, September 1986, pp. 728-741; and Michael Lynn, “Tipping in Restaurants and Around the Globe: An Interdisciplinary Review,” in Morris Altman, ed., Handbook of Contemporary Behavioral Economics, Foundations and Developments (Armonk, N.Y.: M .E. Sharpe Publishers, 2006), pp. 626-643. 173-177 The Price of Repugnance: Discussion on different attitudes about eating horse fillet are drawn from Alvin Roth, “Repugnance as a Constraint on Markets,” Journal of Economic Perspectives, Vol. 21, No. 3, Summer 2007, pp. 37-58; maville.com, Caen et ça region (at www.caen.maville.com/actu/actudet_-Cyril-ouvre-une-boucherie-chevaline-boulevard-Leroy-_loc-822159_actu.htm, accessed 07/18/2010); and Tara Burghart, “Last US Horse Slaughterhouse to Close,” Huffington Post, June 29, 2007 (www.huffingtonpost.com/huff-wires/20070629/horse-slaughter/#, accessed 07/18/2010).


pages: 209 words: 13,138

Empirical Market Microstructure: The Institutions, Economics and Econometrics of Securities Trading by Joel Hasbrouck

Alvin Roth, barriers to entry, business cycle, conceptual framework, correlation coefficient, discrete time, disintermediation, distributed generation, experimental economics, financial intermediation, index arbitrage, information asymmetry, interest rate swap, inventory management, market clearing, market design, market friction, market microstructure, martingale, price discovery process, price discrimination, quantitative trading / quantitative finance, random walk, Richard Thaler, second-price auction, selection bias, short selling, statistical model, stochastic process, stochastic volatility, transaction costs, two-sided market, ultimatum game, zero-sum game

Roll, Richard, 1984, A simple implicit measure of the effective bid-ask spread in an efficient market, Journal of Finance 39, 1127–39. Ronen, Tavy, 1998, Trading structure and overnight information: A natural experiment from the Tel-Aviv Stock Exchange, Journal of Banking and Finance 22, 489–512. Ross, Sheldon M., 1996, Stochastic Processes (John Wiley, New York). Roth, Alvin E., 1995, Bargaining experiments, in John H. Kagel, and Alvin E. Roth, eds., The Handbook of Experimental Economics (Princeton University Press, Princeton, NJ). Roth, Alvin E., and Axel Ockenfels, 2002, Last-minute bidding and the rules for ending second-price auctions: Evidence from eBay and Amazon auctions on the internet, American Economic Review 92, 1093–103. Rubinstein, Ariel, 1982, Perfect equilibrium in a bargaining model, Econometrica 50, 97–110. Rust, John, John H. Miller, and Richard Palmer, 1993.


Refuge: Transforming a Broken Refugee System by Alexander Betts, Paul Collier

Alvin Roth, anti-communist, centre right, charter city, corporate social responsibility, Donald Trump, failed state, Filter Bubble, global supply chain, informal economy, Kibera, mass immigration, megacity, mobile money, Mohammed Bouazizi, mutually assured destruction, open borders, Peace of Westphalia, peer-to-peer, race to the bottom, randomized controlled trial, rising living standards, risk/return, school choice, special economic zone, structural adjustment programs, trade route, urban planning, zero-sum game

A relatively small coalition was able to get the project up and running and gradually bring on board new partners as the project progressed. The example illustrates how public–private partnership may open avenues for the job creation needed to ensure refugees’ access to autonomy in exile. Another example of a creative initiative relates to the idea of using ‘preference matching’ for refugee resettlement, which was an idea developed by the Nobel-Prize winning economist Alvin Roth.13 It offers a way in which two parties to a transaction can express their preferences regarding outcomes, and then have them ‘matched’ so that they are better off than they otherwise would be. Matching can be defined as ‘an allocation of resources where both parties to the transaction need to agree to the match in order for it to take place’. It has more commonly been applied to areas such as school choice, kidney exchange, and hospital residency.

Steve Krasner, Sovereignty: Organized Hypocrisy (Princeton, 1999: Princeton University Press). 12. Judith Kumin, ‘Welcoming Engagement: How Private Sponsorship Can Strengthen Refugee Resettlement in the European Union’ (Washington DC, 13. 14. 15. 16. 17. 18. 2015: MPI), http://www.migrationpolicy.org/research/welcomingengagement-how-private-sponsorship-can-strengthen-refugeeresettlement-european. See, for example, Alvin Roth, ‘The Economics of Matching: Stability and Incentives’, Mathematics of Operations Research, 7/4 (1982): 617–28. Will Jones and Alex Teytelboym, ‘Choice, Preferences and Priorities in a Matching System for Refugees’, Forced Migration Review, 51 (2016): 80–82. This is meant in the sense that it does not deliberately hire staff based on their political or economic training or expertise. For example, UNHCR employed its first professional economist in 2014.


pages: 202 words: 58,823

Willful: How We Choose What We Do by Richard Robb

activist fund / activist shareholder / activist investor, Alvin Roth, Asian financial crisis, asset-backed security, Bernie Madoff, capital asset pricing model, cognitive bias, collapse of Lehman Brothers, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, delayed gratification, diversification, diversified portfolio, effective altruism, endowment effect, Eratosthenes, experimental subject, family office, George Akerlof, index fund, information asymmetry, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, lake wobegon effect, loss aversion, market bubble, market clearing, money market fund, Pareto efficiency, Paul Samuelson, Peter Singer: altruism, principal–agent problem, profit maximization, profit motive, Richard Thaler, Silicon Valley, sovereign wealth fund, survivorship bias, the scientific method, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, transaction costs, ultimatum game

Richtel, Matt. “Can’t Take It with You, But You Want More.” New York Times, January 5, 2014. Robb, Richard. “Nietzsche and the Economics of Becoming.” Capitalism and Society 4, no. 1 (2009). Ross, Don. “Economic Models of Procrastination.” In The Thief of Time: Philosophical Essays on Procrastination, edited by Chrisoula Andreou and Mark D. White, 28–50. Oxford: Oxford University Press, 2010. Roth, Alvin E., Vesna Prasnikar, Masahiro Okuno-Fujiwara, and Shmuel Zamir. “Bargaining and Market Behavior in Jerusalem, Ljubljana, Pittsburgh and Tokyo: An Experimental Study.” American Economic Review 81, no. 5 (1991): 1068–1095. Russell, Bertrand. The Problems of Philosophy. New York: Henry Holt, 1912. Sartre, Jean-Paul. Existentialism Is a Humanism. Edited by John Kulka, translated by Carol Macomber.


pages: 614 words: 174,226

The Economists' Hour: How the False Prophets of Free Markets Fractured Our Society by Binyamin Appelbaum

"Robert Solow", airline deregulation, Alvin Roth, Andrei Shleifer, anti-communist, battle of ideas, Benoit Mandelbrot, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, Celtic Tiger, central bank independence, clean water, collective bargaining, Corn Laws, correlation does not imply causation, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, desegregation, Diane Coyle, Donald Trump, ending welfare as we know it, financial deregulation, financial innovation, fixed income, floating exchange rates, full employment, George Akerlof, George Gilder, Gini coefficient, greed is good, Growth in a Time of Debt, income inequality, income per capita, index fund, inflation targeting, invisible hand, Isaac Newton, Jean Tirole, John Markoff, Kenneth Arrow, Kenneth Rogoff, land reform, Long Term Capital Management, low cost airline, manufacturing employment, means of production, Menlo Park, minimum wage unemployment, Mohammed Bouazizi, money market fund, Mont Pelerin Society, Network effects, new economy, oil shock, Paul Samuelson, Philip Mirowski, plutocrats, Plutocrats, price stability, profit motive, Ralph Nader, RAND corporation, rent control, rent-seeking, Richard Thaler, road to serfdom, Robert Bork, Robert Gordon, Ronald Coase, Ronald Reagan, Sam Peltzman, Silicon Valley, Simon Kuznets, starchitect, Steve Jobs, supply-chain management, The Chicago School, The Great Moderation, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, transaction costs, trickle-down economics, ultimatum game, Unsafe at Any Speed, urban renewal, War on Poverty, Washington Consensus

In 2017 dollars, the average price of a domestic flight was $350.41 in 2005 and $362.61 in 2017, according to federal data compiled by Airlines.org. 98. “Internet Access Services,” February 2018, Federal Communications Commission. 99. Karl Ritter and Nathalie Rothschild, “Nobel Prize for Economics Goes to France’s Tirole,” Associated Press, October 13, 2014. 100. “OECD Broadband Basket,” June 2017, OECD Broadband Portal. 101. The economist Alvin Roth, perhaps the world’s preeminent designer of markets — for kidneys and students, among other things — says that markets are like wheels: free movement requires an axle. Alvin Roth, Who Gets What and Why (New York: Houghton Mifflin, 2012), 13. Chapter 7. The Value of Life 1. Jean-Baptiste Say, “Author’s Note,” Catechism of Political Economy, 3rd ed. (1815); available in the original French at https://fr.wikisource.org/wiki/Cat%C3%A9chisme_d%E2%80%99%C3%A9conomie_politique/1881/Avertissement. 2.


pages: 252 words: 73,131

The Inner Lives of Markets: How People Shape Them—And They Shape Us by Tim Sullivan

"Robert Solow", Airbnb, airport security, Al Roth, Alvin Roth, Andrei Shleifer, attribution theory, autonomous vehicles, barriers to entry, Brownian motion, business cycle, buy and hold, centralized clearinghouse, Chuck Templeton: OpenTable:, clean water, conceptual framework, constrained optimization, continuous double auction, creative destruction, deferred acceptance, Donald Trump, Edward Glaeser, experimental subject, first-price auction, framing effect, frictionless, fundamental attribution error, George Akerlof, Goldman Sachs: Vampire Squid, Gunnar Myrdal, helicopter parent, information asymmetry, Internet of things, invisible hand, Isaac Newton, iterative process, Jean Tirole, Jeff Bezos, Johann Wolfgang von Goethe, John Nash: game theory, John von Neumann, Joseph Schumpeter, Kenneth Arrow, late fees, linear programming, Lyft, market clearing, market design, market friction, medical residency, multi-sided market, mutually assured destruction, Nash equilibrium, Occupy movement, Pareto efficiency, Paul Samuelson, Peter Thiel, pets.com, pez dispenser, pre–internet, price mechanism, price stability, prisoner's dilemma, profit motive, proxy bid, RAND corporation, ride hailing / ride sharing, Robert Shiller, Robert Shiller, Ronald Coase, school choice, school vouchers, sealed-bid auction, second-price auction, second-price sealed-bid, sharing economy, Silicon Valley, spectrum auction, Steve Jobs, Tacoma Narrows Bridge, technoutopianism, telemarketer, The Market for Lemons, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, trade route, transaction costs, two-sided market, uber lyft, uranium enrichment, Vickrey auction, Vilfredo Pareto, winner-take-all economy

“In the Great Web Bazaar,” The Economist, February 24, 2000, http://www.economist.com/node/285614; Robert Hall, Digital Dealing: How E-Markets Are Transforming the Economy (New York: W. W. Norton, 2002). 10. Recall in Chapter 4 that we looked at how eBay sellers experimented with bundling listings with charitable donations. 11. Economists have come up with a number of explanations for this end-of-auction “sniping.” For example, a paper by Alvin Roth and Axel Ockenfels argues that bidders learn about what an item is worth during the bidding process. The “snipers” wait to see how others value a listing before swooping in at the last moment to put in a slightly higher bid. Alvin E. Roth and Axel Ockenfels, “Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet,” American Economic Review 92, no. 4 (2002): 1093–1103. 12.


pages: 383 words: 81,118

Matchmakers: The New Economics of Multisided Platforms by David S. Evans, Richard Schmalensee

Airbnb, Alvin Roth, big-box store, business process, cashless society, Chuck Templeton: OpenTable:, creative destruction, Deng Xiaoping, disruptive innovation, if you build it, they will come, information asymmetry, Internet Archive, invention of movable type, invention of the printing press, invention of the telegraph, invention of the telephone, Jean Tirole, John Markoff, Lyft, M-Pesa, market friction, market microstructure, mobile money, multi-sided market, Network effects, Productivity paradox, profit maximization, purchasing power parity, QR code, ride hailing / ride sharing, sharing economy, Silicon Valley, Snapchat, Steve Jobs, Tim Cook: Apple, transaction costs, two-sided market, Uber for X, uber lyft, ubercab, Victor Gruen, winner-take-all economy

In “The Limits of Scale,” Halaburda and Oberholzer-Gee argue that this explains decisions by app-oriented platforms, such as those involving games, to limit the number of apps. Another plausible explanation, however, is that these platforms restrict entry in order to raise the level of quality and prevent a lemons problem. 12. In economist-speak, this is a negative direct network effect. 13. These are positive direct network effects. 14. For a discussion of the role of congestion and the speed of making transactions, see Alvin Roth, Who Gets What and Why (New York: Houghton Mifflin Harcourt, 2015). 15. Eye-tracking studies of how consumers use search engines reveal that both the quality of the consumer experience and the attention paid to advertising varies substantially with the layout and organization of the search results page. Erick Schonfeld, “Study Suggests People Prefer Bing’s Design to Google’s, But Still Won’t Switch,” TechCrunch, June 25, 2009, http://techcrunch.com/2009/06/25/study-suggests-people-prefer-bings-design-to-googles-but-still-wont-switch/. 16.


pages: 324 words: 93,175

The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home by Dan Ariely

Alvin Roth, assortative mating, Burning Man, business process, cognitive dissonance, corporate governance, Daniel Kahneman / Amos Tversky, end world poverty, endowment effect, Exxon Valdez, first-price auction, Frederick Winslow Taylor, George Akerlof, happiness index / gross national happiness, hedonic treadmill, IKEA effect, Jean Tirole, job satisfaction, knowledge economy, knowledge worker, loss aversion, Peter Singer: altruism, placebo effect, Richard Thaler, Saturday Night Live, second-price auction, software as a service, The Wealth of Nations by Adam Smith, ultimatum game, Upton Sinclair, young professional

Uri Simonsohn, “Weather to Go to College,” The Economic Journal 120, no. 543 (2009): 270–280. Chapter 11: Lessons from Our Irrationalities: Why We Need to Test Everything Additional readings Colin Camerer and Robin Hogarth, “The Effects of Financial Incentives in Experiments: A Review and Capital-Labor-Production Framework,” Journal of Risk and Uncertainty 19, no. 1 (1999): 7–42. Robert Slonim and Alvin Roth, “Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic,” Econometrica 66, no. 3 (1998): 569–596. Richard Thaler, “Toward a Positive Theory of Consumer Choice,” Journal of Economic Behavior and Organization 1, no. 1 (1980): 39–60. Index The pagination of this electronic edition does not match the edition from which it was created. To locate a specific passage, please use the search feature of your e-book reader.


pages: 351 words: 101,051

Also Human: The Inner Lives of Doctors by Caroline Elton

Alvin Roth, fear of failure, feminist movement, job satisfaction, Kickstarter, longitudinal study, medical residency, meta analysis, meta-analysis, Rubik’s Cube, women in the workforce

See race and ethnicity misconduct in UK, 234 Morehouse School of Medicine, selection for, 237–238 Morris, Jenny, 136 mortality of patients, and new doctors, 24–25 mothers, attachment of infants, 51–52 multiple mini interviews (MMI), 245–248, 251–252 National Health Service (NHS) career support of doctors, 4–5 first day of new doctors, 15 training of doctors, 4, 216 unpreparedness of F1s for work, 16–17 National Resident Matching Program (NRMP), 22–23, 191 neonatal ward and neonates, 54 New England Journal of Medicine, 5–6 New Zealand, 33–34, 112–113 obstetrics as choice of specialty, 85 and death, 77–78 and male homosexuality, 100–101 Ofri, Danielle, 57–58 oncology work as choice of specialty, 85 and personal background, 71, 73–74, 75 orphans, 51 Osler, William, 58, 156 “The Other Side of the Speculum” (Thoma), 108 palliative medicine, impact on patients, 70 parents attachment to, 51–52 feelings for children, 259–260 and siblings’ differences, 173 part-time work, for women, 161, 164, 169 patients bias of doctors, 177–178 and BME doctors, 182–183 curtains in hospitals, 41–42 doctors as, 124–126, 128–131 emotions in patient relationship, 59, 257–262 empathy towards, 60–61 impairments, 134–135 in intimate examinations, 115–118 outcomes, 168, 257–262 relationships with doctors, 110, 111, 235, 258–259 sexual attraction, 110, 112–114 pay gap, for women, 161–162 pediatric resuscitation (failed), impact on doctors, 221–222 pelvic examinations, and sexual attraction, 106–109 personal life and background in specialty choice, 92–94, 99–101 and career choice, 71–78, 82–84, 98–100, 112, 243–245 and emotions, 72–76 and exiting medicine, 204, 209 impact on work, 120–124, 148–149, 167–168 personal statements, for selection, 241–242 personality, and specialty choice, 85–86 Plato, 82–83 pregnancies hostility towards in surgery, 148, 153, 155 work with pregnant mothers and babies, 120–123 prior experience, in choice of specialty, 88–90 Prober, Charles, 190 professional misconduct in UK, 234 psychiatry, and family life and medical studies, 82–83 psychological demands and needs in medical work, 257–259, 260–264 psychology and psychotherapy family life and medical studies, 83–84 service for doctors, 184–185 transference and countertransference, 102–105 Public Privates (Kapsalis), 106 “Quitting Medicine” (Crichton), 224 race and ethnicity attitude changes, 176 and belonging, 181–183, 196–198 challenges for ethnic doctors, 196–198, 199 data collection and use, 190–191 differential attainment, 185–192, 198–199 grades and access to medical school, 185–187, 189–191 misreading of students, 171–173, 192–194 “racial legacy” in medicine, 194–196 receiving end of, 179–181 reforms in schools, 199–200 relationship with patients, 182–183 stereotypes and bias, 171, 173–175, 177–178, 180–181, 183, 198 support of family, 184 unconscious bias, 176–178, 243 misreading due to ethnicity, 171–173 race and stereotypes, 172–173, 181, 183–185 referrals to specialists, stress towards, 11 repression, as defense mechanism, 57 Republic (Plato), 82–83 residencies (USA) depression in, 32 and empathy, 58 job offers and placement, 21–23 return to career and specialty, 165–167, 218, 220–221 revues, stereotypes in, 175 road traffic accidents, and hours of work, 35 role changing, 226 See also exiting medicine role models, in choice of specialty, 87–88 Rorschach inkblot test, 86 rota, and sleep and planning, 36–37 Roth, Alvin E., 22 Royal College of Physicians, working conditions survey, 6–7 safety of patients and workloads, 7 Schwartz, Kenneth, 60–61 Schwartz Center Rounds, 61–62 selection for medical school and completion, 232–233 and difficulties in school and work, 233–236 dishonesty and lies, 249–250 emotional resilience, 250–253 ethical decisions, 246 “failure to fail” problem, 233, 235–236 health assessment, 251 and health issues, 229–230, 253–255 interviews, 242–246 motivations for, 244–245 multiple mini interviews (MMI), 245–248, 251–252 multiple sample, 245–247 personal statements, 241–242 tests and achievements, 236–239 selection of specialty, 83–86, 95–97 separation and loss, impact, 51 sexual offences by doctors, 115–116, 118 sexual orientation, and choice of specialty, 100–101 sexual attraction and desire advice and guidelines, 112–114, 117 boundary violations, 113–117 between doctor and patient, 110, 112–114 in intimate examinations, 102, 105–110, 116–117 in work relationships, 105, 111–113, 117 Shah, Jyoti, 155 Shapley, Lloyd S., 22 Shirley (patient), in goldfish bowl sessions, 67, 68 Shooter, Mike, 82 sickness doctors as patients, 124–126, 128–129 and doctors’ careers, 126–128 as motivation to be a doctor, 244 from stress at work, 78–79 Sinclair, Simon, 57 Situational Judgement Test (SJT), 17–20, 27–28 skills and qualities for medicine, 241–242 sleep, 35–37 social mobility in medicine, 240 Society for General Internal Medicine, on empathy, 59 specialty choice in medicine background of students, 92–94, 99–101 dissatisfaction with, 85, 97 and elective period, 89 influences on, 87–91 and personality, 85–86 selection by doctors and students, 83–86, 95–97 and sexual orientation, 100–101 and student debt, 91–92 timing of decision, 92–95 in UK, 84–85, 88, 90–92, 95, 159 in US, 84–85, 88, 91, 92 women’s choices, 157–161 work and study required, 163 Stanford University, stereotypes study, 178–180 Steele, C.


The Winner-Take-All Society: Why the Few at the Top Get So Much More Than the Rest of Us by Robert H. Frank, Philip J. Cook

accounting loophole / creative accounting, air freight, Alvin Roth, Apple's 1984 Super Bowl advert, business cycle, Daniel Kahneman / Amos Tversky, delayed gratification, global village, haute couture, income inequality, invisible hand, labor-force participation, longitudinal study, Marshall McLuhan, medical malpractice, Network effects, positional goods, prisoner's dilemma, rent-seeking, rising living standards, Ronald Reagan, school choice, Shoshana Zuboff, Stephen Hawking, transaction costs, trickle-down economics, winner-take-all economy

"The Economics of Superstars," American Economic Review 7 1 (December 1981): 845-58. . "Authority, Control and the Distribution of Earnings." Bell Journal of --- Economics 1 3 (October 1982): 3 1 1-23. 258 Bibliography . "Prizes and Incentives in Elimination Tournaments." American Eco­ nomic Review 76 (September 1986): 701-16. ---. "The Market for Lawyers." Journal 0/ Law and Economics 35 (Octo­ --- ber 1992): 2 15-46. Roth, Alvin E., and Marilda Sotomayor. Two-Sided Matching: A Study in Game-Theoretic Modeling and Analysis. Econometric Society Monograph Series. Cambridge, England: Cambridge University Press, 1990. Ryan, Joan. "Too Much, Too Young." San Francisco Examiner, July 12, 1992, pp. C 1 , C6 , C7. Sandomir, Richard. "Why Baseball Faces a Strike." New York Times, August 10, 1994, p. AI. Schapiro, Morton 0., Michael P.


pages: 898 words: 266,274

The Irrational Bundle by Dan Ariely

accounting loophole / creative accounting, air freight, Albert Einstein, Alvin Roth, assortative mating, banking crisis, Bernie Madoff, Black Swan, Broken windows theory, Burning Man, business process, cashless society, Cass Sunstein, clean water, cognitive dissonance, computer vision, corporate governance, credit crunch, Credit Default Swap, Daniel Kahneman / Amos Tversky, delayed gratification, Donald Trump, end world poverty, endowment effect, Exxon Valdez, first-price auction, Frederick Winslow Taylor, fudge factor, George Akerlof, Gordon Gekko, greed is good, happiness index / gross national happiness, hedonic treadmill, IKEA effect, Jean Tirole, job satisfaction, Kenneth Arrow, knowledge economy, knowledge worker, lake wobegon effect, late fees, loss aversion, Murray Gell-Mann, new economy, Peter Singer: altruism, placebo effect, price anchoring, Richard Feynman, Richard Thaler, Saturday Night Live, Schrödinger's Cat, second-price auction, Shai Danziger, shareholder value, Silicon Valley, Skype, software as a service, Steve Jobs, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, ultimatum game, Upton Sinclair, Walter Mischel, young professional

Ariely works at the interface of psychology, economics, and marketing, and is the only experimental scientist I can think of whose work speaks compellingly to scholars in all three disciplines. The hallmark of an Ariely experiment is that it uses an innovative experimental design to make an unusual point. His work covers a wide range of factors that affect human decision-making, from the usual suspects, inattention and confusion and myopia, to less studied issues like pain and lust.” —Alvin Roth, Professor of Economics and Business Administration, Harvard University “Dan is full of passion for life in general, which is also apparent in his writing and research. Dan’s research is very broad, covering many aspects and implications for the new field of behavioral economics. This includes the psychology of consumers, employees, and investors, crossing topics from dating to dishonesty.

Uri Simonsohn, “Weather to Go to College,” The Economic Journal 120, no. 543 (2009): 270–280. Chapter 11: Lessons from Our Irrationalities: Why We Need to Test Everything Additional readings Colin Camerer and Robin Hogarth, “The Effects of Financial Incentives in Experiments: A Review and Capital-Labor-Production Framework,” Journal of Risk and Uncertainty 19, no. 1 (1999): 7–42. Robert Slonim and Alvin Roth, “Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic,” Econometrica 66, no. 3 (1998): 569–596. Richard Thaler, “Toward a Positive Theory of Consumer Choice,” Journal of Economic Behavior and Organization 1, no. 1 (1980): 39–60. Index The pagination of this electronic edition does not match the edition from which it was created. To locate a specific passage, please use the search feature of your e-book reader.


pages: 415 words: 125,089

Against the Gods: The Remarkable Story of Risk by Peter L. Bernstein

"Robert Solow", Albert Einstein, Alvin Roth, Andrew Wiles, Antoine Gombaud: Chevalier de Méré, Bayesian statistics, Big bang: deregulation of the City of London, Bretton Woods, business cycle, buttonwood tree, buy and hold, capital asset pricing model, cognitive dissonance, computerized trading, Daniel Kahneman / Amos Tversky, diversified portfolio, double entry bookkeeping, Edmond Halley, Edward Lloyd's coffeehouse, endowment effect, experimental economics, fear of failure, Fellow of the Royal Society, Fermat's Last Theorem, financial deregulation, financial innovation, full employment, index fund, invention of movable type, Isaac Newton, John Nash: game theory, John von Neumann, Kenneth Arrow, linear programming, loss aversion, Louis Bachelier, mental accounting, moral hazard, Myron Scholes, Nash equilibrium, Norman Macrae, Paul Samuelson, Philip Mirowski, probability theory / Blaise Pascal / Pierre de Fermat, random walk, Richard Thaler, Robert Shiller, Robert Shiller, spectrum auction, statistical model, stocks for the long run, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, Thomas Bayes, trade route, transaction costs, tulip mania, Vanguard fund, zero-sum game

There is a sharp contrast between generalizations based on theory and generalizations based on experiments. De Moivre first conceived of the bell curve by writing equations on a piece of paper, not, like Quetelet, by measuring the dimensions of soldiers. But Galton conceived of regression to the mean-a powerful concept that makes the bell curve operational in many instances-by studying sweetpeas and generational change in human beings; he came up with the theory after looking at the facts. Alvin Roth, an expert on experimental economics, has observed that Nicholas Bernoulli conducted the first known psychological experiment more than 250 years ago: he proposed the coin-tossing game between Peter and Paul that guided his uncle Daniel to the discovery of utility.26 Experiments conducted by von Neumann and Morgenstern led them to conclude that the results "are not so good as might be hoped, but their general direction is correct."'-' The progression from experiment to theory has a distinguished and respectable history.


pages: 515 words: 132,295

Makers and Takers: The Rise of Finance and the Fall of American Business by Rana Foroohar

accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, additive manufacturing, Airbnb, algorithmic trading, Alvin Roth, Asian financial crisis, asset allocation, bank run, Basel III, bonus culture, Bretton Woods, British Empire, business cycle, buy and hold, call centre, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, carried interest, centralized clearinghouse, clean water, collateralized debt obligation, commoditize, computerized trading, corporate governance, corporate raider, corporate social responsibility, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, crowdsourcing, David Graeber, deskilling, Detroit bankruptcy, diversification, Double Irish / Dutch Sandwich, Emanuel Derman, Eugene Fama: efficient market hypothesis, financial deregulation, financial intermediation, Frederick Winslow Taylor, George Akerlof, gig economy, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, High speed trading, Home mortgage interest deduction, housing crisis, Howard Rheingold, Hyman Minsky, income inequality, index fund, information asymmetry, interest rate derivative, interest rate swap, Internet of things, invisible hand, John Markoff, joint-stock company, joint-stock limited liability company, Kenneth Rogoff, Kickstarter, knowledge economy, labor-force participation, London Whale, Long Term Capital Management, manufacturing employment, market design, Martin Wolf, money market fund, moral hazard, mortgage debt, mortgage tax deduction, new economy, non-tariff barriers, offshore financial centre, oil shock, passive investing, Paul Samuelson, pensions crisis, Ponzi scheme, principal–agent problem, quantitative easing, quantitative trading / quantitative finance, race to the bottom, Ralph Nader, Rana Plaza, RAND corporation, random walk, rent control, Robert Shiller, Robert Shiller, Ronald Reagan, Satyajit Das, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, Snapchat, Social Responsibility of Business Is to Increase Its Profits, sovereign wealth fund, Steve Jobs, technology bubble, The Chicago School, the new new thing, The Spirit Level, The Wealth of Nations by Adam Smith, Tim Cook: Apple, Tobin tax, too big to fail, trickle-down economics, Tyler Cowen: Great Stagnation, Vanguard fund, zero-sum game

Fault Lines: How Hidden Fractures Still Threaten the World Economy. Princeton, NJ: Princeton University Press, 2010. Reich, Robert B. Supercapitalism: The Transformation of Business, Democracy, and Everyday Life. New York: Alfred A. Knopf, 2007. Reinhart, Carmen M., and Kenneth S. Rogoff. This Time Is Different: Eight Centuries of Financial Folly. Princeton, NJ: Princeton University Press, 2009. Roth, Alvin E. Who Gets What—and Why: The New Economics of Matchmaking and Market Design. Boston: Houghton Mifflin Harcourt, 2015. Rothkopf, David. Power, Inc.: The Epic Rivalry Between Big Business and Government—and the Reckoning That Lies Ahead. New York: Farrar, Straus and Giroux, 2012. Saval, Nikil. Cubed: The Secret History of the Workplace. New York: Doubleday, 2014. Scheiber, Noam. The Escape Artists: How Obama’s Team Fumbled the Recovery.


pages: 543 words: 153,550

Model Thinker: What You Need to Know to Make Data Work for You by Scott E. Page

"Robert Solow", Airbnb, Albert Einstein, Alfred Russel Wallace, algorithmic trading, Alvin Roth, assortative mating, Bernie Madoff, bitcoin, Black Swan, blockchain, business cycle, Capital in the Twenty-First Century by Thomas Piketty, Checklist Manifesto, computer age, corporate governance, correlation does not imply causation, cuban missile crisis, deliberate practice, discrete time, distributed ledger, en.wikipedia.org, Estimating the Reproducibility of Psychological Science, Everything should be made as simple as possible, experimental economics, first-price auction, Flash crash, Geoffrey West, Santa Fe Institute, germ theory of disease, Gini coefficient, High speed trading, impulse control, income inequality, Isaac Newton, John von Neumann, Kenneth Rogoff, knowledge economy, knowledge worker, Long Term Capital Management, loss aversion, low skilled workers, Mark Zuckerberg, market design, meta analysis, meta-analysis, money market fund, Nash equilibrium, natural language processing, Network effects, p-value, Pareto efficiency, pattern recognition, Paul Erdős, Paul Samuelson, phenotype, pre–internet, prisoner's dilemma, race to the bottom, random walk, randomized controlled trial, Richard Feynman, Richard Thaler, school choice, sealed-bid auction, second-price auction, selection bias, six sigma, social graph, spectrum auction, statistical model, Stephen Hawking, Supply of New York City Cabdrivers, The Bell Curve by Richard Herrnstein and Charles Murray, The Great Moderation, The Rise and Fall of American Growth, the rule of 72, the scientific method, The Spirit Level, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, urban sprawl, value at risk, web application, winner-take-all economy, zero-sum game

“Fractality and Self-Organized Criticality of Wars.” Fractals 6: 351–357. Roberts, Seth. 2004. “Self-Experimentation as a Source of New Ideas: Ten Examples About Sleep, Mood, Health, and Weight.” Behavioral and Brain Sciences 27, no. 2: 227–262 Romer, Paul. 1986. “Increasing Returns and Long-Run Growth.” Journal of Political Economy 94: 1002–1037. Rosen, Sherwin. 1981. “The Economics of Superstars.” American Economic Review 71: 845–858. Roth, Alvin, and Ido Erev. 1995. “Learning in Extensive Form Games: Experimental Data and Simple Dynamic Models in the Intermediate Term.” Games and Economics Behavior 8: 164–212. Russakoff, Dale. 2015. The Prize: Who’s in Charge of America’s Schools? Boston: Houghton Mifflin Harcourt. Rust, Jon. 1987. “Optimal Replacement of GMC Bus Engines: An Empirical Model of Harold Zurcher.” Econometrica 55, no. 5: 999–1033.


pages: 561 words: 157,589

WTF?: What's the Future and Why It's Up to Us by Tim O'Reilly

4chan, Affordable Care Act / Obamacare, Airbnb, Alvin Roth, Amazon Mechanical Turk, Amazon Web Services, artificial general intelligence, augmented reality, autonomous vehicles, barriers to entry, basic income, Bernie Madoff, Bernie Sanders, Bill Joy: nanobots, bitcoin, blockchain, Bretton Woods, Brewster Kahle, British Empire, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, Captain Sullenberger Hudson, Chuck Templeton: OpenTable:, Clayton Christensen, clean water, cloud computing, cognitive dissonance, collateralized debt obligation, commoditize, computer vision, corporate governance, corporate raider, creative destruction, crowdsourcing, Danny Hillis, data acquisition, deskilling, DevOps, Donald Davies, Donald Trump, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, Filter Bubble, Firefox, Flash crash, full employment, future of work, George Akerlof, gig economy, glass ceiling, Google Glasses, Gordon Gekko, gravity well, greed is good, Guido van Rossum, High speed trading, hiring and firing, Home mortgage interest deduction, Hyperloop, income inequality, index fund, informal economy, information asymmetry, Internet Archive, Internet of things, invention of movable type, invisible hand, iterative process, Jaron Lanier, Jeff Bezos, jitney, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kevin Kelly, Khan Academy, Kickstarter, knowledge worker, Kodak vs Instagram, Lao Tzu, Larry Wall, Lean Startup, Leonard Kleinrock, Lyft, Marc Andreessen, Mark Zuckerberg, market fundamentalism, Marshall McLuhan, McMansion, microbiome, microservices, minimum viable product, mortgage tax deduction, move fast and break things, move fast and break things, Network effects, new economy, Nicholas Carr, obamacare, Oculus Rift, packet switching, PageRank, pattern recognition, Paul Buchheit, peer-to-peer, peer-to-peer model, Ponzi scheme, race to the bottom, Ralph Nader, randomized controlled trial, RFC: Request For Comment, Richard Feynman, Richard Stallman, ride hailing / ride sharing, Robert Gordon, Robert Metcalfe, Ronald Coase, Sam Altman, school choice, Second Machine Age, secular stagnation, self-driving car, SETI@home, shareholder value, Silicon Valley, Silicon Valley startup, skunkworks, Skype, smart contracts, Snapchat, Social Responsibility of Business Is to Increase Its Profits, social web, software as a service, software patent, spectrum auction, speech recognition, Stephen Hawking, Steve Ballmer, Steve Jobs, Steven Levy, Stewart Brand, strong AI, TaskRabbit, telepresence, the built environment, The Future of Employment, the map is not the territory, The Nature of the Firm, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thomas Davenport, transaction costs, transcontinental railway, transportation-network company, Travis Kalanick, trickle-down economics, Uber and Lyft, Uber for X, uber lyft, ubercab, universal basic income, US Airways Flight 1549, VA Linux, Watson beat the top human players on Jeopardy!, We are the 99%, web application, Whole Earth Catalog, winner-take-all economy, women in the workforce, Y Combinator, yellow journalism, zero-sum game, Zipcar

., 172–73 and government technology, 187–89 improving outcomes, 175–76 of labor, 190–98 reputation systems in design of online platforms, 181–90 role of sensors, 176–77 and surveillance data, 177–81 value of, 181–90 and workers’ continuous partial employment, 190–98 regulatory capture, 187–88 REI, 244 Reinventing Discovery (Nielsen), 43 Remix, 140 repairs vs. sealed hardware, 337–38 reputation systems, 181–90 Resnick, Paul, 182 Reuther, Walter, 357 rhyming patterns, 5, 8, 13 Ries, Eric, 186 right to work laws, 262–63 Rilke, Rainer Maria, 353 Rinaudo, Keller, 370, 372 Rise and Fall of American Growth (Gordon), 243 Rise of the Robots, The (Ford), 269 Robbins, Jesse, 121 Roberts, Bruce, 285–88 Robinson, David, 130 Robinson, Kim Stanley, 96 robots and robotics competitive advantage of human touch, 311, 315, 330–31 fears about, ix, 300 filling the gap of not enough workers, 310 and jobs, xx–xxi and laser eye surgery, xvii–xviii and people, at Amazon, 95 the Robot Lawyer, 332 robot tax proposal, 307 Rolf, David, 196, 262 Roman empire, xix Romer, Paul, 249 Rosencrantz & Guildenstern Are Dead (Stoppard), xii Rossman, John, 117 Roth, Alvin E., 98 Rothman, Simon, 196 Rushkoff, Douglas, 251 Rwanda, 370 Safari service for ebooks, 50, 344 Sanders, Bernie, 255 Saudi Arabia, 305–6 scenario planning, 358–67 Scheifler, Bob, 16 Schlossberg, Edwin, 3 Schmidt, Eric, 126, 129, 137 Schneier, Bruce, 177 Schrage, Michael, xiv, 58 Schulman, Andrew, 10 Schumpeterian profits, 296 Schumpeterian waste, 277–78 Schwartz, Peter, 359 Science and Sanity (Korzybski), 20 Scoble, Robert, 39 Search, The (Battelle), 161 search engine optimization, 160–61 search engines, 39, 92, 157–59, 207, 288.


pages: 662 words: 180,546

Never Let a Serious Crisis Go to Waste: How Neoliberalism Survived the Financial Meltdown by Philip Mirowski

"Robert Solow", Alvin Roth, Andrei Shleifer, asset-backed security, bank run, barriers to entry, Basel III, Berlin Wall, Bernie Madoff, Bernie Sanders, Black Swan, blue-collar work, Bretton Woods, Brownian motion, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, complexity theory, constrained optimization, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, dark matter, David Brooks, David Graeber, debt deflation, deindustrialization, do-ocracy, Edward Glaeser, Eugene Fama: efficient market hypothesis, experimental economics, facts on the ground, Fall of the Berlin Wall, financial deregulation, financial innovation, Flash crash, full employment, George Akerlof, Goldman Sachs: Vampire Squid, Hernando de Soto, housing crisis, Hyman Minsky, illegal immigration, income inequality, incomplete markets, information asymmetry, invisible hand, Jean Tirole, joint-stock company, Kenneth Arrow, Kenneth Rogoff, Kickstarter, knowledge economy, l'esprit de l'escalier, labor-force participation, liberal capitalism, liquidity trap, loose coupling, manufacturing employment, market clearing, market design, market fundamentalism, Martin Wolf, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, Naomi Klein, Nash equilibrium, night-watchman state, Northern Rock, Occupy movement, offshore financial centre, oil shock, Pareto efficiency, Paul Samuelson, payday loans, Philip Mirowski, Ponzi scheme, precariat, prediction markets, price mechanism, profit motive, quantitative easing, race to the bottom, random walk, rent-seeking, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, school choice, sealed-bid auction, Silicon Valley, South Sea Bubble, Steven Levy, technoutopianism, The Chicago School, The Great Moderation, the map is not the territory, The Myth of the Rational Market, the scientific method, The Wisdom of Crowds, theory of mind, Thomas Kuhn: the structure of scientific revolutions, Thorstein Veblen, Tobin tax, too big to fail, transaction costs, Vilfredo Pareto, War on Poverty, Washington Consensus, We are the 99%, working poor

Ausubel and Cramton (“No Substitute for the ‘P’-Word in Financial Rescue,” p. 1) repeat the “suitcase approach” charge. 137 “Complicated Reverse Auction May Aid in Bailout,” NPR, October 10, 2008. 138 Ausubel and Cramton, “A Troubled Asset Reverse Auction,” p. 10. 139 And, indeed, the studies that Ausubel and Cramton draw upon to get their 97 percent figure (Kagel and Levin, “Implementing Efficient Multi-Object Auction Institutions”) provided experimental treatments of private value auctions. 140 Matthew Philips, “Gaming the Financial System,” Newsweek, November 18, 2008, available at www.thedailybeast.com/newsweek/2008/11/17/gaming-the-financial-system.html. 141 Lawrence Ausubel and Peter Cramton, “Auction Design for the Rescue Plan,” presentation dated October 5, 2008, available at www.cramton.umd.edu/papers2005-2009/ausubel-cramton-auction-for-rescue-plan-slides.pdf (accessed March 6, 2012). 142 Nik-Khah, “A Tale of Two Auctions.” 143 Cramton, “Auctioning the Digital Dividend,” p. 1. 144 “The Credit Crisis and Market Design,” Alvin Roth’s Market Design Blog, January 3, 2009, at http://marketdesigner.blogspot.com/2009/01/credit-crisis-and-market-design.html. 145 Cramton, “Market Design,” p. 2. 146 Session on “Research Funding for Economists.” See www.etnpconferences.net/sea/seaarchive/sea2011/User/Program.php?TimeSlot=4#Session11. 147 Prasch, “After the Crash of 2008,” p. 161. 148 Sorkin, Too Big to Fail, pp. 227–29; Calomiris and Wallison, “Blame Fannie Mae and Congress for the Credit Mess.” 149 Krugman, “Fannie, Freddie and You.” 150 White, “The Federal Reserve System’s Influence on Research in Monetary Economics”; Wallison, see all; Congleton, “On the Political Economy of the Financial Crisis and Bailout 2008–9”; Calabria, “Fannie, Freddie and the Subprime Mortgage Market”; Pinto, “ACORN and the Housing Bubble”; Paybarah, “Bloomberg: Plain and Simple.” 151 Nocera, “The Big Lie.” 152 For the best examples, consult Engel and McCoy, The Subprime Virus; Muolo and Padilla, Chain of Blame; Fligstein and Goldstein, “A Long Strange Trip”; Avery and Brevoort, “The Subprime Crisis”; Madrick and Partnoy, “Did Fannie Cause the Disaster?”