CM 014: Alvin Roth on the Secrets of Market Design

Nobel-prize-winning economist Alvin Roth explores the markets that shape our lives, particularly our work, our health care and our schools. He also explains how key technologies enable companies like Uber, Airbnb, and Google to thrive. His insights extend beyond products, services, and features to include how successful companies attract and hire the most talented employees. Alvin Roth is a Stanford University Professor, and bestselling author of Who Gets What - and Why: The New Economics of Matchmaking and Market Design. In this episode you will learn: how one phone call and a pivotal decision ultimately led to a Nobel Prize the important differences between markets the role of markets when it comes to marriage, loans, and more the role of social support in markets the ways the Internet and mobile technology shape market possibilities the three key factors that influence the success of companies like Airbnb and Uber the ways Smartphones are influencing markets how labor market findings influenced the market designs of today what game theory can teach us about getting into college and getting a job how market designers are applying their skills to the growing global refugee crisis Alvin also shares what got him interested in the economics of market design and the potential this new field holds for helping us rethink what markets are and can do. Episode Links Bob Beran National Resident Matching Program Operations research Roth-Peranson Algorithm Elliott Peranson United Network for Organ Sharing (UNOS) School Choice Programs Black Market Repugnant Markets Lloyd Shapley David Gale The Sveriges Riksbank Prize in Economic Sciences 1962 paper of Lloyd Shapley and David Gale Stable Matching (or Marriage) Problem (SMP) Game Theory Parag A. Pathak Atila Abdulkadiroglu If you enjoyed the podcast, please rate and review it on iTunes. For automatic delivery of new episodes, be sure to subscribe. Thanks for listening!