New Books in Economics Judd B. Kessler, "Lucky by Design: The Hidden Economics of Getting More of What You Want" (Little, Brown Spark, 2025)
16 snips
Jan 3, 2026 Judd B. Kessler is the Howard Marks Endowed Professor at the Wharton School and an expert in market design. He reveals how hidden markets impact key life outcomes—from restaurant reservations to organ donations. Kessler discusses the concept of 'settle for silver' strategies for better choices in competitive situations like college applications. He also explains the criteria for good market design, emphasizing equity, efficiency, and ease, and delves into the role of lotteries in enhancing winning odds. It's a fascinating exploration of how to navigate life's hidden economies!
AI Snips
Chapters
Books
Transcript
Episode notes
A Course That Shaped A Career
- Judd recounts taking Alvin Roth's PhD-level course as an undergrad, which shaped his interest in market design.
- That experience led him to return to Harvard for a PhD and pursue market-design research.
Hidden Markets Aren't Driven By Price
- Many markets clear by price, but many important allocations deliberately avoid price mechanisms.
- Hidden markets allocate by rules other than money and require different strategic thinking.
Why Sellers Avoid Market-Clearing Prices
- Sellers often keep prices below market-clearing to preserve fan access, reputational benefits, or social proof.
- Low posted prices create excess demand that can increase future attention and long-term value.
