Friday, January 10, 2025

William Vickrey on congestion pricing, in today's NYT

 William Vickrey won the Nobel prize in 1996, and died of a heart attack, on the road from New York City, before he could go to Stockholm to receive it. (Paul Milgrom gave a Nobel lecture on his behalf.)  But his paper on congestion pricing lives on. (Mike Ostrovsky regularly teaches it in our class on market design.)

Here's his paper:

Vickrey, William S. "Pricing in urban and suburban transport." The American Economic Review 53, no. 2 (1963): 452-465.

Now that congestion pricing has been implemented in New York City, he's in the news again.

Here's today's  excellent NYT story:

The Roller-Skating Economist You Can Thank for Congestion Pricing
Charging drivers to enter Lower Manhattan vindicates the lifelong mission of a Nobel laureate who, as it happened, died behind the wheel of a car.   By Ginia Bellafante

"An idiosyncratic academic who spent the entirety of his 60-year career in the economics department at Columbia University, Vickrey is considered the father of congestion pricing, now a fact of Manhattan street life. He is no longer alive, but he would have hardly been surprised by how long it took for his theories to materialize.

...

"Two days after he won the Nobel, he was driving to a conference in Cambridge, Mass. On the Hutchinson River Parkway, he suffered cardiac arrest and died. It was a rare excursion by car for him. In the 1930s and ’40s Vickrey had been known at Columbia for taking the train, what is now known as Metro-North, from Westchester to the Harlem stop at 125th Street and then roller-skating to campus."

Thursday, January 9, 2025

2024 Shkreli Awards, for profiteering and dysfunction in healthcare

 Here are the 2024 Shkreli Awards, the Lown Institute’s top ten list of the worst examples of profiteering and dysfunction in healthcare, named for the infamous “pharma bro” Martin Shkreli.

"Nominees for the Shkreli Awards are compiled by Lown Institute staff with input from readers of Lown Weekly. An esteemed panel of patient activists, clinicians, health policy experts, and journalists help determine the winners. (press release | previous winners)"

##########

At least some of the 'prizes' they award are subject to dispute, including their choice for #1"

Wednesday, January 8, 2025

For real passion in the discussion of market design, look to sports

 The Guardian weighs in on American football playoffs:

The NFL’s bogus playoff seeding system penalizes the more deserving  by Doug Farrar

"The injustice of the NFL’s playoff seeding system rears its ugly head once again.

"Now that we know how the 2024 NFL playoffs are seeded from top to bottom, it’s time once again to complain about the league’s ugly secret: its system for awarding playoff position, and thus which teams will have postseason games at home or on the road, is seriously flawed.

"The primary culprit is the league’s insistence that every division winner gets at least one home game. That would be somewhat equitable if every division winner was above average, but the process of elimination tells us a different story."

Tuesday, January 7, 2025

National Medals of Science and Technology (including Cynthia Dwork for differential privacy)

 In one of the final acts of his administration, President Biden celebrates 25 distinguished scientists and engineers. (I'm particularly glad to see Cynthia Dwork recognized for her work on differential privacy.)

 Forbes has the story:

Biden Names 25 Recipients Of National Medals Of Science, Technology, by Michael T. Nietzel

In a statement from the White House, Biden said, “those who earn these awards embody the promise of America by pushing the boundaries of what is possible. These trailblazers have harnessed the power of science and technology to tackle challenging problems and deliver innovative solutions for Americans and for communities around the world.”

...



"The 14 recipients of the National Medal of Science are:

    Richard B. Alley, the Evan Pugh University Professor of Geosciences at Pennsylvania State University. Alley researches the great ice sheets to help predict future changes in climate and sea levels.
    Larry Martin Bartels, University Distinguished Professor of Political Science and Law and the May Werthan Shayne Chair of Public Policy and Social Science at Vanderbilt University. His scholarship focuses on public opinion, public policy, election science, and political economy.
    Bonnie L. Bassler, Squibb Professor in Molecular Biology and chair of the Department of Molecular Biology at Princeton University, for her research on the molecular mechanisms that bacteria use for intercellular communication.
    Angela Marie Belcher, the James Mason Crafts Professor of Biological Engineering and Materials Science and Engineering at MIT and a member of the Koch Institute for Integrative Cancer Research. She was honored for designing materials for applications in solar cells, batteries, and medical imaging.
    Helen M. Blau, Donald E. and Delia B. Baxter Foundation Professor and the Director of the Baxter Laboratory for Stem Cell Biology at Stanford University for her research on muscle diseases, regeneration and aging, including the use of stem cells for tissue repair.
    Emery Neal Brown, the Edward Hood Taplin Professor of Medical Engineering and Computational Neuroscience at MIT, was recognized for his work revealing how anesthesia affects the brain.
    John O. Dabiri, Centennial Chair Professor at the California Institute of Technology, in the Graduate Aerospace Laboratories and Mechanical Engineering. His research focuses on fluid mechanics and flow physics, with an emphasis on topics relevant to biology, energy, and the environment.
    Ingrid Daubechies, the James B. Duke Distinguished Professor Emerita of Mathematics at Duke University, was honored for her pioneering work on signal processing.
    Cynthia Dwork, Gordon McKay Professor of Computer Science at Harvard University, was recognized for research that has transformed the way data privacy is handled in the age of big data and AI.
    R. Lawrence Edwards, Regents and Distinguished McKnight University Professor, Department of Earth and Environmental Sciences at the University of Minnesota. Edwards is known for his refinement of radiocarbon dating techniques to study climate history and ocean chemistry.
    Wendy L. Freedman, the John and Marion Sullivan University Professor in Astronomy and Astrophysics at the University of Chicago, for her observational cosmology research, including pioneering uses of the Hubble Space Telescope.
    Keivan G. Stassun, Stevenson Professor of Physics & Astronomy at Vanderbilt University for his work in astrophysics, including the study of star formation and exoplanets.
    G. David Tilman is Regents Professor and the McKnight Presidential Chair in Ecology, Evolution, and Behavior at the University of Minnesota. He studies biological diversity, the structure and benefits of ecosystems and ways to assure sustainability despite global increases in human consumption and population.
    Teresa Kaye Woodruff is the MSU Research Foundation Professor of Obstetrics, Gynecology and Reproductive Biology and Biomedical Engineering at Michigan State University. She is an internationally recognized expert in ovarian biology and reproductive science.

The nine individual recipients of the National Medal of Technology and Innovation are:

    Martin Cooper for his work in advancing in personal wireless communications for over 50 years. Cited in the Guinness Book of World Records for making the first cellular telephone call, Cooper, known as the “father of the cell phone,” spent much of his career at Motorola.
    Jennifer A. Doudna, a Nobel Laureate in Chemistry and the Li Ka Shing Chancellor’s Chair in Biomedical and Health Sciences at the University of California, Berkeley. She is a pioneer of CRISPR gene editing.
    Eric R. Fossum is the John H. Krehbiel Sr. Professor for Emerging Technologies at Dartmouth College. He invented the CMOS active pixel image sensor used in cell-phone cameras, webcams, and medical imaging.
    Paula T. Hammond, an MIT Institute Professor, vice provost for faculty, and member of the Koch Institute, was honored for developing methods for assembling thin films that can be used for drug delivery, wound healing, and other applications.
    Kristina M. Johnson, former president of The Ohio State University was recognized for research in photonics, nanotechnology, and optoelectronics. Her discoveries have contributed to sustainable energy solutions and advanced manufacturing technologies.
    Victor B. Lawrence spent much of his career at Bell Laboratories, working on new developments in multiple forms of communications. He is a Research Professor and Director of the Center for Intelligent Networked Systems at Stevens Institute of Technology.
    David R. Walt is a faculty member of the Wyss Institute at Harvard University and is the Hansjörg Wyss Professor of Bioinspired Engineering at Harvard Medical School and Professor of Pathology at Harvard Medical School and Brigham and Women’s Hospital. He was honored for co-inventing the DNA microarray, enabling large-scale genetic analysis and better personalized medicine.
    Paul G. Yock is an emeritus faculty member at Stanford University. A physician, Yock is known for inventing, developing and testing new cardiovascular intervention devices, including the stent.
    Feng Zhang, the James and Patricia Poitras Professor of Neuroscience at MIT and a professor of brain and cognitive sciences and biological engineering, was recognized for his work developing molecular tools, including the CRISPR genome-editing system."

#########

Here's my post from ten years ago:

Saturday, February 7, 2015 Differential Privacy: an appreciation of Cynthia Dwork

 

Monday, January 6, 2025

Kidney exchange reduces demographic disparities, by Bethany Lemont and Keith Teltser

 Here's an interesting recent paper on the differential impact of kidney exchange on different demographic groups...

Does Paired Kidney Exchange Reduce Demographic Disparities in Transplant Outcomes? by Bethany Lemont, Ohio University - Department of Economics, and Keith Teltser, Georgia State University, November 16, 2024

Abstract
Paired kidney exchange programs increase living donor transplants by facilitating matches across immunologically incompatible patient-donor pairs. Given existing concerns about demographic disparities in transplant access and outcomes, we examine the extent to which exchange differentially impacts patients across demographic groups. To estimate causal relationships, we leverage the importance of patient proximity to exchange-facilitating centers and plausibly exogenous spatial and temporal variation in exchange activity. We show that exchange increases the quantity of living donor transplants, improves transplant survival, and reduces waiting time overall. Patients who are Black, younger, more-educated, privately-insured, and women experience the largest living donor transplant gains in percentage terms. Patients who are Black, younger, less-educated, insured by Medicaid, and women experience the largest improvements in survival. Our findings paint a nuanced picture. Kidney exchange seems to narrow gender and racial/ethnic gaps in transplantation, exacerbate disparities by age, and have mixed effects across education and insurance groups.

Sunday, January 5, 2025

Dan Ariely has replaced Milton Friedman as the inspiration for a fictional Sherlock Holmes-type crime solver

Remember Henry Spearman?  He's the hero of the Henry Spearman mystery novels by Marshall Jevons. He's a crime-solving Sherlock whose secret is neoclassical economics, and his physical description makes it seem that he's modeled on Milton Friedman.

He's been replaced by a  crime solver using behavioral economics…not in a novel but in a television series, and it seems that he's modeled on Dan Ariely.

The Irrational season 2  By Sarabeth Pollock
Jesse L. Martin returns as a brilliant professor with a knack for getting inside peoples' heads.
 

"Following the success of The Irrational season 1, NBC quickly ordered up another season of the crime drama that centers on Professor Alec Mercer (Jesse L. Martin), behavioral scientist and leading expert on human behavior based on the book Predictably Irrational by Dan Ariely. 

...

"through behavioral analysis, Mercer and his team are always able to provide key insight into the toughest of cases."

Saturday, January 4, 2025

David Lodge (1935 – 2025), saw the funny side of academia (and academic conferences)

 David Lodge, whose wrote some of the greatest comic novels about academia, is now laughing at us from beyond the grave.  He was 90 years old (up to a rounding error).

 Here are those of his books I have at home...


Here's the NYT obit:

David Lodge, British Novelist Who Satirized Academic Life, Dies at 89  By John Cotter

"Mr. Lodge’s university novels took place not in the rarefied world of Oxford, Cambridge and the Ivy League but at middle-class schools, like the fictional Rummidge, a “grimy, provincial” place full of thwarted ambition and backbiting. Ingeniously plotted, his fiction teems with unlikely romance and strange coincidence.

"The first of these novels, “Changing Places” (1975), became famous for a game the character Philip Swallow invents called “Humiliation,” in which players try to name the most well-regarded book they haven’t read. In his first attempt, Howard Ringbaum, a pretentious English professor, keeps missing the point by listing obscure titles in attempts to impress his colleagues. Finally, desperately, he admits to never having read “Hamlet.” He wins the game but loses his job.

"In the trilogy’s second book, “Small World” (1984), Morris Zapp, a slick theoretician delivering a lecture at a conference, uses the striptease style supposedly popular in the all-nude go-go bars of Berkeley, Calif., as a metaphor for what continental theory has uncovered about language...

...

"(The third novel in the trilogy is “Nice Work,” published in 1988.)

"Graham Greene was an early admirer of Mr. Lodge’s fiction, going so far as to send Mr. Lodge’s third novel, “The British Museum Is Falling Down” (1965), which concerns the Roman Catholic Church’s antipathy toward contraception, to Cardinal John Heenan, then the church’s highest-ranking official in England."

Friday, January 3, 2025

Sessions that caught my eye in the ASSA program

Economics of Higher Education

Lightning Round Session

 Saturday, Jan. 4, 2025   8:00 AM - 10:00 AM (PST)

 Hilton San Francisco Union Square, Golden Gate 3
Hosted By: American Economic Association
  • Chair: Caroline Hoxby, Stanford University

Cap-and-Apply: Unintended Consequences of College Application Policy in South Korea

Taekyu Eom
, 
SUNY-Buffalo
 

 

Do Double Majors Face Less Risk? An Analysis of Human Capital Diversification

Andrew S. Hanks
, 
Ohio State University
Shengjun Jiang
, 
Wuhan University
Xuechao Qian
, 
Stanford University
 
Bo Wang
, 
Nankai University
Bruce A. Weinberg
, 
Ohio State University

 

Inequality-Aware Market Design

Paper Session

 Sunday, Jan. 5, 2025   10:15 AM - 12:15 PM (PST)

 Hilton San Francisco Union Square, Union Square 1 and 2
Hosted By: Econometric Society
  • Chair: Piotr Dworczak, Northwestern University

Waiting or Paying for Healthcare: Evidence from the Veterans Health Administration

Anna Russo
, 
Massachusetts Institute of Technology
 

Optimal Redistribution via Income Taxation and Market Design

Mohammad Akbarpour
, 
Stanford University
Pawel Doligalski
, 
University of Bristol
Piotr Dworczak
, 
Northwestern University
 
Scott Duke Kominers
, 
Harvard University

Should the Government Sell You Goods? Evidence from the Milk Market in Mexico

Diego Javier Jimenez Hernandez
, 
Chicago Federal Reserve
 
Enrique Seira
, 
Michigan State University

Taxing Externalities without Hurting the Poor

Mallesh M. Pai
, 
Rice University
Philipp Strack
, 
Yale University
 

Discussant(s)
Vasiliki Skreta
, 
University of Texas-Austin and University College London
Dmitry Taubinsky
, 
University of California-Berkeley
Mohammad Akbarpour
, 
Stanford University
Dan Waldinger
, 
New York University

 

 

Market Design in College Admissions

Paper Session

 Sunday, Jan. 5, 2025   10:15 AM - 12:15 PM (PST)

 Hilton San Francisco Union Square, Union Square 11
Hosted By: Econometric Society
  • Chair: Evan Riehl, Cornell University

College Application Mistakes and the Design of Information Policies at Scale

Anaïs Fabre
, 
Toulouse School of Economics
Tomas Larroucau
, 
Arizona State University
Christopher Andrew Neilson
, 
Princeton University
Ignacio Rios
, 
University of Texas-Dallas
 

Inequity in Centralized College Admissions with Public and Private Universities: Evidence from Albania

Iris Vrioni
, 
University of Michigan
 

Stakes and Signals: An Empirical Investigation of Muddled Information in Standardized Testing

Germán Reyes
, 
Middlebury College
Evan Riehl
, 
Cornell University
 
Ruqing Xu
, 
Cornell University

 

Finance and Development

Paper Session

 Sunday, Jan. 5, 2025   1:00 PM - 3:00 PM (PST)

 Hilton San Francisco Union Square, Continental Ballroom 9
Hosted By: American Economic Association
  • Chair: Martin Kanz, World Bank

Default Contagion in Microfinance

Natalia Rigol
, 
Harvard Business School
Ben Roth
, 
Harvard Business School
 

Abstract

Joint liability is one of the hallmarks of microfinance. Though it is intended to reduce non-payment, it has also been hypothesized to lead to default contagion, whereby non-payment by one borrower may reduce the likelihood of repayment by groupmates. Utilizing unexpected deaths, we document significant default contagion in one of Chile's largest microfinance institutions. We estimate that a single default causes an additional 0.8 borrowers to default, indicating that nearly half of observed default is due to contagion. 

Credit Contracts, Business Development, and Gender: Evidence from Uganda

Selim Gulesci
, 
Trinity College Dublin
 
Francesco Loiacono
, 
European Bank for Reconstruction and Development
Miri Stryjan
, 
Aalto University
Andreas Madestam
, 
Stockholm University

Discrimination Expectations in the Credit Market: Survey Evidence from India

Stefano Fiorin
, 
Bocconi University
Joseph Hall
, 
Stanford University
Martin Kanz
, 
World Bank
 

Discussant(s)
Simone Gabrielle Schaner
, 
University of Southern California
Anna Vitali
, 
New York University
Janis Skrastins
, 
Washington University-St. Louis