Monday, March 3, 2014

Paul Klemperer on the product mix auction, and market design (video)

How geometry came to the rescue during the banking crisis - video

"Economist Paul Klemperer of Oxford University describes how he invented an auction based on a new kind of geometry to help the Bank of England as the financial crisis took hold in 2007. The auction got money to the banks and building societies that needed it most urgently. The then governor Mervyn King later called it 'a marvelous application of theoretical economics to a practical problem of vital importance'. Klemperer describes how similar auctions can help other government departments allocate resources.  The video featured as the Editor's Choice on the Guardian on 12th July 2013."

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