Tuesday, December 12, 2017

Ed Glaeser reviews Who Gets What and Why in the Journal of Economic Literature

Ed has written a generous review in the Journal of Economic Literature, of my book and of the field of market design. His review gave me an inkling of what it was like to read the book rather than to have written it*.

Glaeser, Edward L.. 2017. "A Review Essay on Alvin Roth's Who Gets What—And Why." Journal of Economic Literature, 55(4):1602-14.

Abstract: Alvin Roth’s Who Gets What—And Why provides a richly accessible introduction to his pioneering work on market design. Much of economics ignores the institutions that allocate goods, blithely assuming that the mythical Walrasian auctioneer will handle everything perfectly. But markets do fail and Roth details those failures, like the market for law clerks that unravels because clerks and judges commit to each other too quickly. Roth combines theory and pragmatic experience to show how the economist can engineer successful markets. He has even enabled welfare-improving trades in kidney exchanges, where law and social repugnance forbids cash payments.

*To put it another way, I'm reminded of Ralph Waldo Emerson's line "“Tis the good reader that makes the good book...," or maybe Samuel Johnson “A writer only begins a book. A reader finishes it.”

No comments: