Good summary of 15 minute talk on market design and experimental economics at Pitt

At the University of Pittsburgh, where I'm now an alum, I gave a 15 minute talk without slides, and it was covered in this news story by Kimberly Barlow, which I thought did a pretty good job of summarizing it.

Honors flow both ways at Pitt

I'm going to applaud and be applauded at one of my favorite universities, where I taught from 1982-1998.

Nobel Laureate Alvin E. Roth to Address Pitt’s Honors Convocation

Economist conducted much of his Nobel-lauded research on matching theory at Pitt

PITTSBURGH—Alvin E. Roth, co-winner of the 2012 Nobel Prize in economics, will be the keynote speaker at the University of Pittsburgh’s 38th annual Honors Convocation, to be held at 3 p.m. Feb. 28 in Carnegie Music Hall, 4400 Forbes Ave., Oakland. All members of the University community are invited to attend.

Honors Convocation recognizes the accomplishments and contributions of Pitt alumni, faculty, staff, and students. Chancellor Mark A. Nordenberg will preside over the celebratory event. He will bestow an honorary doctoral degree on Roth, who began and completed much of the economics research for which he won the Nobel Prize while serving as Pitt’s first Andrew W. Mellon Professor of Economics from 1982 to 1998. Roth is now the Craig and Susan McCaw Professor of Economics at Stanford University and the George Gund Professor of Economics and Business Administration Emeritus at Harvard University.

“The University’s Honors Convocation recognizes the significant achievements of Pitt people who are pursuing academic, scholarly, and professional excellence in their fields,” said Chancellor Mark A. Nordenberg. “Our friend and former colleague Nobel Laureate Alvin Roth is an exemplary representative of the legacy of excellence that the University of Pittsburgh has established and upon which it continues to build. It will be a special pleasure to welcome him back to Pitt.”

Roth won the Nobel Prize along with Lloyd S. Shapley, professor emeritus of economics and mathematics at UCLA, for solving a key economic problem—how to match players in a market in the best possible way.

Beginning in the 1960s, Shapley developed a body of theoretical work in which he used Cooperative Game Theory to study matching. He found that it is important to find a “stable match,” meaning a match in which there are no two agents who would prefer one another over their current counterparts.

When Roth was a Pitt faculty member in the 1980s, he began using Shapley’s theoretical results to explain how matching happens in practice. He studied the medical job market and eventually began to implement his findings in existing programs like the National Resident Matching Program that matches newly minted doctors with residency positions at hospitals. In another case, he worked with Pitt economics alumnus M. Utku Ünver (A&S ’97G, ’00G) on a study that led to improvements in the design of a program to match kidney donors with compatible kidney recipients. He also has assisted with developing a system for matching students with schools.

When announcing the prize in 2012, the Royal Swedish Academy of Sciences said of Roth and Shapley: “Even though these two researchers worked independently of one another, the combination of Shapley’s basic theory and Roth’s empirical investigations, experiments, and practical design has generated a flourishing field of research and improved the performance of many markets. This year’s prize is awarded for an outstanding example of economic engineering.”

While at Pitt, Roth was the recipient of the 1992 Chancellor’s Distinguished Research Award. He also served as a Fellow in the Center for Philosophy of Science and a professor of business administration in the Joseph M. Katz Graduate School of Business. His work was also influential in developing the field of experimental economics at the University.

“Central to Prof. Roth’s work on market design has been the use of theory and laboratory experiments. Under his leadership, the Department of Economics at Pitt became, and is still regarded as being, one of the leaders in experimental economics,” said Lise Vesterlund, Pitt’s current Andrew W. Mellon Professor of Economics.

Webcast of the luncheon talks on market design from the 2014 AEA Annual Meeting

The AEA has posted a collection of webcasts from the 2014 annual meeting in Philadelphia, including from the
Nobel Laureate Luncheon
William Nordhaus; Paul Milgrom; Roger Myerson 
View Webcast

The video is a little less than an hour: and consists of brief introductions by Nordhaus, and talks on market design and its history by Milgrom and Myerson, and a short talk by me with some thoughts on the future of market design as economic engineering and the science that supports it.  (spoiler: I think it will be important to study congestion...)
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Eleven 2014 Annual Meeting sessions are available online. (I enjoyed Claudia Goldin's magisterial address on gender and jobs, which reminded me of the work following up on this and the matching aspects of pursuing both careers and marriages, of our joint student Stephanie Hurder.):

•    AEA Presidential Address "A Grand Gender Convergence: Its Last Chapter" (Claudia Goldin)
•    AEA Awards Ceremony (William Nordhaus)
•    Richard T. Ely Lecture "Retirement Security in an Aging Population" (James Poterba)
•    Nobel Laureate Luncheon (Paul Milgrom, Roger Myerson, and Alvin Roth)
•    AEA/AFA Joint Luncheon (Jeremy Stein)
•    Chairman Bernanke Presentation (Ben Bernanke, Kenneth Rogoff, and Anil Kashyap)
•    What's Natural? Key Macroeconomic Parameters after the Great Recession
•    Discounting for the Long Run
•    Financial Globalization
•    Climate Change Policy after Kyoto
•    Macroeconomics of Austerity

Paul Milgrom and Roger Myerson on matching and market design at lunch today

I gather that Lloyd Shapley won't be making the trip to Philadelphia, so I'll be standing in for the two of us.

Jan 04, 2014 12:30 pm, Philadelphia Marriott, Grand Ballroom - Salons G & H 
American Economic Association

Nobel Laureate Luncheon

Presiding: WILLIAM NORDHAUS (Yale University)

PAUL MILGROM (Stanford University)

ROGER MYERSON (University of Chicago)