Friday, January 27, 2012

German university admissions

I'll be teaching the first class of the semester of Experimental Economics today, so readers of this blog may see more of the intersection between market design and experiments, like the following paper on the university admission system in Germany, and how it might be redesigned...





Sebastian Braun



Nadja Dwenger



Dorothea Kübler



Alexander Westkamp

 

Abstract:     
Quotas for special groups of students often apply in school or university admission procedures. This paper studies the performance of two mechanisms to implement such quotas in a lab experiment. The first mechanism is a simplified version of the mechanism currently employed by the German central clearinghouse for university admissions, which first allocates seats in the quota for top-grade students before allocating all other seats among remaining applicants. The second is a modified version of the student-proposing deferred acceptance (SDA) algorithm, which simultaneously allocates seats in all quotas. Our main result is that the current procedure, designed to give top-grade students an advantage, actually harms them, as students often fail to grasp the strategic issues involved. The modified SDA algorithm significantly improves the matching for top-grade students and could thus be a valuable tool for redesigning university admissions in Germany.

Thursday, January 26, 2012

Experiments and market design in Switzerland in April

Institutions and Behavior
April 19-21, 2012 in Kreuzlingen (CH)
Organized by the Thurgau Institute of Economics at the University of Konstanz
Organizers: Urs Fischbacher, Lisa Bruttel, Gerald Eisenkopf, Ulrich Wacker
Institutions are designed in order to create incentives for people to behave in a way desired by the designer of the institution. For example, legally enforced contracts allow interacting parties to rely on each other when trust alone is not a sufficiently solid foundation. However, we frequently observe that institutions do not induce the desired behavior. People question the fairness or legitimacy of an institution, or they exploit deficits in the design of institutions in an opportunistic way. Not knowing how people respond to institutional incentives creates also a difficult problem for the designer of institutions. This conference invites contributions investigating how institutions shape behavior and vice versa how institutions are actually designed. We welcome experimental, theoretical and empirical research from economics and other related disciplines.
Keynote speakers at the workshop:
Rebecca B. Morton Rebecca B. Morton is professor of politics at the New York University. She is a leading researcher in experimental political sciences, in particular voting behavior and electoral processes. She has published in the best journals in both economics and political sciences. Her most recent publications focus, inter alia, on the decision making of swing voters and the behavior in standing expert committees. (http://politics.as.nyu.edu/object/RebeccaBMorton)
Frans van Winden Frans van Winden is professor of economics at the Amsterdam School of Economics and at the Cognitive Science Center Amsterdam. Excellent publications document his main research interests in the fields of political economy, behavioral economics, neuroeconomics and experimental economics. In his recent projects he investigates, for example, the behavioral economics of crime and of social ties or compares tax regimes experimentally. (http://www.creedexperiment.nl/creed/people/winden)
If you would like to present your research at this meeting please submit a paper or an extended abstract here.
Here you can additionally register for the conference. The registration fee for the conference is 150 CHF including meals, coffee breaks, the conference dinner on Thursday evening and a social event on Friday evening.
February 1, 2012 Submission deadline
March 1, 2012 Notification of acceptance
March 15, 2012 Registration deadline for presenters
April 2, 2012 Registration deadline for non-presenting participants
 
theem is kindly supported by

Wednesday, January 25, 2012

Is economic repugnance closely related to biological disgust?

Colleagues often send me articles related to this blog, but the one I have received the most copies of recently is yesterday's NY Times article: Survival’s Ick Factor, about recent studies related to the emotion of disgust, and its possible evolutionary significance in e.g. keeping people away from sources of infection such as feces.

Many people have sent me the article because of my own interest in ickonomics, aka repugnant markets and transactions. A repugnant transaction is one that some people want to engage in, and others think they shouldn't be allowed to. I'm willing to exclude the case of ordinary, pecuniary negative externalities. The issue that initially made all of this very salient to me is the ban, almost everywhere, on buying and selling kidneys (which generated my interest in kidney exchange). But I quickly realized that there are lots of repugnant transactions, and I began a 2007 article on the subject by asking why you can't eat horse meat in California. (It's against the law, passed by popular referendum in 1998.)

Which brings me to the point of this post.

I don’t think the kind of repugnance I study is fundamentally related to biological/evolutionary disgust. The reason there are laws against eating horsemeat, for example, is that it isn’t innately disgusting, so some people want to do it, and others don’t want them to. But there aren’t any laws against eating feces…(sorry, yuck).

Now, I bet that your brain is economical, and that you might recruit some of the same neurons you use to feel disgust to remind you of things you don't like. So I'm not surprised that there are correlates between propensity to feel disgust and some political opinions, for example.

But, to come back to kidney sales, I can't see that the repugnance to selling transplant kidneys for money can be closely related to the disgust that may be inspired by transplantation itself (and the associated blood and guts), since transplantation itself is almost universally regarded as a good thing. That is, the part of the transaction that involves bodily fluids, and might inspire the kind of disgust that would keep you from contamination in other people's innards, isn't regarded as repugnant. Nor is kidney donation, which involves the surgical removal of a kidney. It's only the introduction of money into the transplant transaction that makes it repugnant. (And as we've recently seen with bone marrow, this repugnance to introducing money is alive and well, and crosses party lines.)

And I'm pretty sure there's no evolutionary disgust aroused by money (if only because money was invented pretty late in the evolutionary game...).

Tuesday, January 24, 2012

Is the market for professors of English becoming less thick?

That's the question raised by a recent article on the job market organized by the Modern Language Association: Realities of the Endless Search

 "The MLA meeting (until recently in late December and now in early January) has for decades been the primary place where search committees in English and foreign languages interviewed a large number of candidates and then selected a small group for campus visits. So the fall was the time for the initial vetting of the large pool to determine who was worthy of an MLA interview. Now, the schedule is much less firm. Susan Miller, English chair at Santa Fe College, a Florida community college, said that she has had searches in which money wasn’t available on the regular schedule, but then materialized late in the year. So the college advertised a job last March, "a really awkward time for a fall opening." But she said that the department didn’t want to lose its shot at the position, so it went ahead as soon as it could -- and in fact rushed the process, feeling that until someone had signed a contract, the position might disappear."

Monday, January 23, 2012

Justice department appeals recent court ruling allowing bone marrow donors to be compensated

I recently posted about the 9th circuit court of appeals' decision to allow some bone marrow donors to be compensated: Paying bone marrow donors is now legal (depending on how it's done)
Here's the court's decision.

But it turns out that transactions mostly don't become illegal without someone finding them repugnant. Just in case you thought bone marrow had been accidentally included in the ban on compensating donors, the latest news (pointed out to me by Joseph Colucci) is that the Justice Department is contesting the recent court decision:  Government fights court decision that says bone marrow donors may be paid .

"the Obama administration last week asked a San Francisco appeals court to overturn a recent decision that said bone marrow donors can be paid for what their bodies produce.
"A unanimous three-judge panel last month ruled for a nonprofit group, MoreMarrowDonors.org, that wants to encourage bone marrow donations by offering $3,000 scholarships, housing allowances or charitable donations to those who are matched with blood disease patients.
...
"When the transplant act was written in 1984, marrow extraction was painful. Needles thick enough to suck out the fatty marrow were inserted into a donor’s anesthetized hip bones, and the cells were taken from the marrow.
Today, a process called apheresis is used about 70 percent of the time. Donors are injected with a medication that accelerates blood stem cell production so there are more cells in the bloodstream. The donor sits for hours in a recliner as a machine collects the “peripheral” blood stem cells and recycles the blood back into the donor.
The donor group said the application of the organ transplant law violated the equal-protection clause, because there is no rational basis for government to treat donors undergoing apheresis differently from blood or sperm donors.
But the three-judge panel said there was no reason to reach the constitutional question. It is up to Congress if it wants to include blood marrow in its list of items that cannot be sold, the court said. But the apheresis method extracts only blood and thus there is no prohibition on paying for it, the court said.
“It may be that ‘bone marrow transplant’ is an anachronism that will soon fade away” as the blood extraction method replaces needle-extraction of bone marrow, Judge Andrew J. Kleinfeld wrote, “much as ‘dial the phone’ is fading away now that telephones do not have dials.”
The Justice Department and the National Marrow Donor Program have moved quickly to try to get the decision overturned.
“The panel’s ruling rests on legal errors of exceptional importance, threatens to disrupt current patient care and undermines Congress’s clear policy of encouraging voluntary bone marrow donations,” the Justice Department said in asking the full U.S. Court of Appeals for the 9th Circuit to rehear the case.
The donor registry, which last year matched 5,000 patients with unrelated donors, said in a statement that the decision could have “unexpected and disastrous consequences” for patients.
The panel’s decision in Flynn v. Holder noted that there are obvious reasons for prohibiting selling organs or even blood marrow cells, which requires a precise genetic match. “Congress might have been concerned that every last cent could be extracted from sick patients needful of transplants, by well-matched potential donors making ‘your money or your life’ offers,” the opinion said.
The donor registry said its experience is that “a donor system that relies on the human desire to help others is far superior to one that focuses on self-gain.”
Mitchell and Institute for Justice lawyer Jeff Rowes got both more and less than they wanted from the 9th Circuit decision. Mitchell said the ruling indicates that his group could directly pay donors rather than offering scholarships or charitable donations.
Rowes, meanwhile, said he had hoped the court would look at the constitutional question and whether the government had a rational basis for including bone marrow in its list of organs. His group is eager for the Supreme Court to weigh in on that test, which he said is “code for the government gets to do whatever it wants.”
Depending on what the 9th Circuit does with the government’s appeal, he still might get the chance."

***********
Background:

Who better than Kim Krawiec to blog about the legal decision to allow compensation for bone marrow donors under some circumstances (if the marrow is gotten from the blood rather than the bone).

She points to an article by Harvard Law prof I. Glenn Cohen in the New England Journal of Medicine, Selling Bone Marrow — Flynn v. Holder, which says that the ruling is a narrow one, that is unlikely to impact the debate about compensation for other kinds of donation. (That was of course under the assumption that the court's decision will stand...)

The true meaning of "fashion forward." Coordinating dates in NY, London, Paris, and Milan

The fashion forward among you will probably be as relieved as I am to know that New York Fashion Week Finally Has An Official Start Date: September 6th

The back story comes to me via Assaf Romm and Dvorah Marciano. They write as follows.


"So Fashion Week is a concept invented in NYC around 1943 (back then it was called "Press Week") when there was not enough French fashion coming from across the ocean due to the German occupation. Around 1993 it took its current form in which there are a lot of fashion people and media coming to one place to plan their Fall/Spring buys and so on. Furthermore, the Fashion Week was copied by many other cities. Specifically, the main events are the Fashion Weeks in NYC, London, Paris and Milan. These events take place consecutively twice a year (around February for the Fall collection, and around September for the Spring collection of next year): 

"It should be mentioned that these Fashion Weeks compete on fashion buyers, media coverage and even models. For example:

"Apparently, scheduling the Fashion Weeks between the big four cities is an ongoing saga, with dates moving earlier and earlier (...I don't have specific data yet). That's why they signed a three-year agreement in 2008 to determine schedules. Obviously, recently there were some issues with Milan moving its dates to coincide with the NYC and London weeks in September 2012. And it seems like Paris also joined in to the fight:

"Finally, it looks like today a final agreement has been reached: [see top of post]. 

"To conclude, this looks like a great unraveling story, because you obviously cannot move Fashion Weeks too early (well, according to Dvorah, you just cannot introduce new fashion too early, or otherwise it wouldn't be fashionable by the time it reaches the consumers....). Also, it seems like fashion highly depends on information. That is, fashion is a form of art, and it is determined by current events ..."

And here's the International Fashion Week Dates Agreement of 2008

Sunday, January 22, 2012

Games 2012, World Congress of the Game Theory Society, July 22-26.

 The fourth World Congress of the Game Theory Society, Games 2012, will be held Sunday July 22 - Thursday July 26, 2012 at Istanbul Bilgi University, in Istanbul, Turkey.


The plenary speakers are Paul Milgrom, Jean-Francois Mertens, Parag Pathak, Eric Maskin and Roger Myerson, and there are and 32 semi-plenary speakers

The deadline for submission of papers is February 1.

Saturday, January 21, 2012

Internet dating not working for you? Hire a wingman or wingwoman

I'm sure there's a Shakespeare comedy about this latest twist on the dating game...

On a Wingman and a Prayer: Singles Bow to Cupids-for-Hire

"As romantics grow weary of the digital dating game, so-called wingman and wingwoman services are taking them back in time. Such outfits, which popped up in cities like Boston and New York as long as eight years ago, are promoting the old-fashioned tête-à-tête. They're gaining traction at a time when Internet dating sites are attracting fewer visitors.

"Susan Baxter, founder of "Hire a Boston Wingwoman," says she launched her business specifically because her friends were fatigued by online dating. She sensed a good niche.

"You go to meet [the person] and realize their picture was taken 10 years ago and that they are not who you thought," says Ms. Baxter, 32 years old. Paired with a confident wingwoman, her customers "can see prospective partners right away, and know right then and there if there is chemistry."

"Ms. Baxter, whose fees start at $130, insists that clients who go out with a pro have better odds of success than those who troll with an untrained male buddy. Often, the friend "says stupid stuff, like 'my friend thinks you're hot,'" she says.

"The service's slogan: "We're better at hitting on women than you are."