Friday, May 14, 2010

Job prospects for new law graduates

The WSJ reports: Bar Raised for Law-Grad Jobs: Employment Prospects Dim as Firms Retrench, Derailing Career Paths for Many

"Many 2009 law graduates who were offered jobs just started work this year. And many graduates hired in 2010 won't start until 2011. So even when the economy picks up, firms would first have to absorb their backlog of recent hires."

...

"Law firms had an average of 16 summer internship positions to offer this year, about half the number of the previous year, according to a March report by the National Association for Law Placement Inc.
Employers last year offered 69% of summer interns a full-time job, down from about 90% in the previous five years."

Thursday, May 13, 2010

Market design seminar tomorrow (Friday May 13 2010)

If you're not on Peter Coles' distribution list, here's the announcement.

Hello Market Design Community:

The speakers in Friday’s HBS Market Design Workshop (the last of the semester!) are

** IAN KASH, "An Auction Design for Sharing Wireless Spectrum," Harvard Center for Research on Computation and Society

** SCOTT KOMINERS, "Concordance Among Holdouts" [with E. G. Weyl], Harvard Business Economics

We’ll meet tomorrow, Friday May 14, from 3-5PM in HBS Baker Library Room 102. The workshop features an informal format for presenting early-stage work, and is intended to encourage the Boston area market design community to meet and interact. Sushi will be provided.

Thanks, and we look forward to seeing you.

Peter Coles / Ben Edelman / Al Roth

College admissions after May 1

The Chronicle of Higher Education reports Good Seats Are Still Available at many colleges.
"On Wednesday, the National Association for College Admission Counseling released its annual "Space Availability Survey," listing the colleges and universities that still have openings for this fall's first-year class. As we move past May 1, the traditional deadline for students to submit enrollment deposits, the survey is a good reminder that the admissions calendar isn't the same at every college."

InsideHigherEd.com has a similar story from the perspective of the colleges: The Early Word on Yield. That story offers some interesting perspectives on the business of finding and recruiting students, e.g.:
"Across the state, Mike Frantz, vice president of enrollment at Robert Morris University, is also looking at vastly different yields for different programs. ...Over all, the university is thrilled "beyond our wildest dreams" because those numbers for the year -- in which overall yield is 17.6 percent, down less than a point -- come from a much larger applicant pool and more admittances. Applications were up 40 percent. The key, Frantz said, was that the college bought names of prospective students at the beginning of their senior year in high school. In the past, Robert Morris stopped buying new names when students reached their junior year, a common practice, feeling that potential students would be identified by then. "But the vast majority of our new applicants, and many of our new students, came from these pools, whose names aren't being purchased traditionally," he said."

Wednesday, May 12, 2010

The market for divorce

Tyler Cowen at MR links to a NY Times story about a divorce themed trade fair in Italy: Divorce Trade Fair Shows Changing Italian Culture
It notes that until recently divorce was a repugnant transaction in Italy. "Italy ratified divorce only in 1974 in a referendum, and critics complain that Italian legislators have not kept up with changing times. "


A much more aggressive component of the market for divorce is reported by the Times of London in a story from Japan. Sex, lies and splitting up: Want to dump a troublesome husband, or unsuitable boyfriend? Just call Osamu Tomiya and his team of splitter-uppers...

The article focuses on "Osamu Tomiya — a member of a peculiarly Japanese profession, part-private investigator, part-prostitute, known as wakaresase-ya — the “splitter-uppers”.
The function of the wakaresase-ya is the direct opposite of a dating agency: with great ingenuity, and the right fee, they will prise apart human relationships. Do you have a troublesome ex-boyfriend who won’t leave you alone? A beloved son who is getting engaged to an unsuitable girl? A dead-loss employee who refuses to take the hint and retire? All of these difficult situations can be resolved by the splitter-uppers.
The broken-hearted ex will be visited by the girl’s “new boyfriend”, a muscular gangster-type who explains why he would be wise to nurse his broken heart alone. The undesirable daughter-in-law-to-be will be lured into a drunken one-night stand with a handsome and mysterious man who appears from nowhere — photographs of their tryst will find their way to her fiancĂ©. The stubborn employee will find himself confronted with evidence of gambling debts, or nights in massage parlours — and resign to avoid embarrassment. In each case, the dirty work — of threatening, seducing and investigating — has been done by a splitter-upper.
But most common of all are complications surrounding marriages. In Japan, the idea of a “no-fault” divorce has never caught on and when a marriage breaks down, it is helpful to be morally in the right. When it comes to maintenance, division of common property and custody of children, the betrayed partner is at a great advantage over the betrayer. And this is where the splitter-uppers come in.
For a wife who wants shot of her husband, it would be disastrous just to own up to a long-term lover and throw herself on the mercy of the courts. Instead, she hires someone such as Mr Tomiya, a 40-year-old former sushi chef, to set up the honeytrap that will put her husband in the wrong and enable her to go before the judge as the injured party, with photographs to prove it."

Tuesday, May 11, 2010

Misc. organ transplant commentary and news

The Times of London reports on how one deceased donor can donate many organs: How one organ donor can save the lives of nine people
There is a worrying shortage of organ donors — and gaining consent from grieving relatives is a delicate task


A living donor is unhappy with the way they have been treated: The Hypocrisy of OPTN's Committee Goals "UNOS has had the OPTN contract since 1986 (yet they cared so little for us they didn't even collect LD social security numbers til 1994); they've had policy to collect follow-up data on living donors since 2000 (but the transplant centers were 50-80% non-compliant), yet it wasn't until 2005 they decided it should be "clinically relevant and validated". And since 2005, independent researchers, UNOS officials and SRTR personnel have all criticized UNOS' data collection as 'woefully inadequate', and worthless as far as any meaningful analysis goes. "

A columnist quotes Adam Smith in support of making compensation for donors legal: Dying people shouldn’t be beggars "It is not from the benevolence of the butcher, the brewer or the baker that we expect our dinner, but from their regard to their own interest. ... Nobody but a beggar chooses to depend chiefly upon the benevolence of his fellow-citizens."
—Adam Smith, "Wealth of Nations"


A living donor is declined by a hospital: Kidney Donation Canceled Because Donor and Recipient ‘Bonded’ and THE MATCH (UN)MAKERS: Why did Einstein halt life-saving transplant? both report a hospital's decision not to accept a donation from a donor who had met his potential recipient via the matchingdonors.com website. The WSJ piece says, by way of of explanation: "As the WSJ has reported, hospitals may be reluctant to agree to this kind of altruistic donation, fearing that donors may have been paid or that participants won’t make it through the rigorous psychological evaluation process, or because the practice sidesteps the official organ waiting lists."

Alex Tabarrok at MR reports on Changing Views on Organ Prohibition and reports that the anthropologist Nancy Scheper-Hughes, who has studied black markets for organs, is in favor of careful trials of ways to ethically compensate organ donors.

California, New York mull changes to organ donor laws
"A California bill may soon create a living donor registry -- the first for any state.
Spurred by Apple co-founder and transplant recipient Steve Jobs, the bill has gained support from major politicos, including California Gov. Arnold Schwarzenegger, and is expected to land on his desk this summer.
Meanwhile, on the East Coast, a far more sweeping transplant bill would make every person an organ donor who doesn't opt out. This would create an organ donation system in New York similar to the ones used in several European countries, but the measure is already facing opposition."
The California bill seems to be aimed primarily at promoting kidney exchange...

Monday, May 10, 2010

Surrogacy, payments, and parental rights in Britain

Couples who pay surrogate mothers could lose right to raise the child: High court could refuse recognition to people who flout law by paying disproportionate fees to a surrogate mother overseas.

"Childless couples who acquire a baby using a surrogate mother abroad risk not being recognised as its parents in Britain if they flout British law by paying fees, fertility lawyers have warned.
Such payments, which can be as high as £30,000, could lead to those who have made them being refused permission by the high court to become the child's legal parents, specialist solicitors say.
The Human Fertilisation and Embryology Act 1990 allows couples entering into deals with a surrogate mother overseas to pay her only what is allowed here – "expenses reasonably incurred", such as compensation for time off work, medical bills and living expenses."
...
""The risk couples face if they pay a disproportionate amount in expenses is that the high court may refuse to authorise those expenses. That could result in the parental order application failing and in turn they would have no status as parents under English law," said John Randle, a leading surrogacy lawyer."
...
"International surrogacy is hugely controversial. "It's unethical and exploitative because the trade is all one-way," said Breedagh Hughes, a Royal College of Midwives spokeswoman, on the ethics of childbirth. "It reduces babies to the level of commodities." "

"Jonathan, a 32-year-old nurse, tells how he and his civil partner, Colin, 33, a financier, spent $150,000 (£98,000) on surrogacy to become the parents of Harriet, who was born in California last year. They live in London.
"We began discussing having a child in 2006, when we were deciding to become civil partners. I was feeling broody, and had always wanted to have my own biological child. We opted to pursue surrogacy in California because we would get legal custody there of the child before it was born and the surrogate would have no legal relationship to the baby.
"My sperm was introduced to eggs left by an egg donor: they were fertilised in an IVF clinic in Los Angeles and two of the embryos were implanted into the surrogate. She simply carried the child for nine months.
An agency in LA found both the egg donor and the surrogate. We never met the egg donor or knew who she was, but knew her medical history, results of her genetic tests, what she looked like and so on. We did meet and get on well with the surrogate, who was called Jennifer. She had two daughters of her own and had been a surrogate once before. There was no coercion. We had a contract, and Jennifer specified things in that like that she wanted back massages and a big hotel room for her family to stay in when she was giving birth.
Agencies in California quote a price of $100,000 to $150,000 to do everything relating to a child. The whole process wasn't too difficult, and cost us about $150,000. We paid the embryologist $60,000, though that included the harvesting of the donor's eggs, the IVF and the transfer of the embryos into the surrogate. It was $40,000 for the surrogate and $10,000 for the egg donor, plus $10,000 to the agency, who supplied the donor and the surrogate. Then there was $10,000 for our lawyer, $5,000 for the medical and psychological screening and another $5,000 for medication for both the donor and the surrogate, to ensure they were in cycle at the same time.
"Bringing Harriet into the UK nine months later was incredibly difficult, though, and we engaged lawyers to help us. She had to come in as an immigrant on a US passport on a six-month tourist visa. When we later filled in a form to get her British citizenship, we put 'not known' in the section headed 'mother'. She now has dual nationality and is legally ours under Californian law. If we do apply, it could be an issue that we paid well over the 'reasonable expenses' limit – that is, we paid a fee. That's illegal in this country, but allowed under Californian law.
"We shouldn't have to seek a parental order. She was conceived and born in California as our child, and her birth certificate says who her parents are, so the courts here should respect Californian law.
Having to apply for a parental order, where there'd be an assessment of Harriet's welfare and Colin would have to prove that he's no danger to her, is an inequity. Anybody else can go out, get drunk, get pregnant, bring up a child appallingly and face no intervention or legal barriers.
I resent people saying that British couples who resort to surrogacy are buying babies abroad. We didn't buy Harriet: she's not picked off a shelf. She's not a 'designer baby'.
We had our own child and had a great team to help us. All we did was rent a woman to carry her. We paid for the services of an embryologist and an incubator who walks and makes good babies – but we didn't buy a baby. She's my daughter biologically, and she's our baby.
A lot of heterosexual couples in the UK spend a lot of money having many cycles of IVF at £5,000 a time – is that not buying a baby?" "

HT: Nick Feltovich

Sunday, May 9, 2010

Organ donation and surrogacy: a Mothers' Day story

Donor gives more than just kidney to Northbrook family
"A little more than 6½ years ago, Fink, then 43, started dialysis after her kidneys failed. Soon after, the Northbrook resident learned the devastating news: her life expectancy made it unlikely she'd live beyond March of this year. But after she found a kidney donor through a Web site -- and after that donor's wife agreed to be a surrogate mother for Fink and her husband -- Gail is not only alive, she is thriving. So are her twin 2½ year-old sons."

Happy Mothers' Day out there.

Saturday, May 8, 2010

China’s Arranged Remarriages

The NY Times reports on China’s Arranged Remarriages among widows and widowers whose spouses died in the devastating earthquake that destroyed towns in Sichuan on May 12, 2008.
It is an unusual demographic event, which created a thick pool of potential (re)marriage partners.
"Coaxing earthquake survivors into remarriage has become a community obligation. Unlikely volunteers have joined in the matchmaking efforts, from former in-laws to the leaders of the local Communist “work units” to which every family in this part of rural Sichuan is still assigned. Behind them is the Chinese government. The state, which has long seen fit to intervene in the most private aspects of people’s lives, including reproductive rights, has avidly promoted — and in some cases even arranged — what it dryly calls “restructured families.”
By the end of 2008, less than eight months after the earthquake, 614 survivors from Beichuan alone had already remarried, according to Wang Hongfa, a local civil-affairs official. (The number across Sichuan’s earthquake zone, though not made public, is estimated to be well into the thousands.) That so many earthquake survivors have already remarried is not surprising in itself; but in many cases, these are widows marrying widowers, two survivors striving to get back onto solid ground. "

Gifted programs for pre-kindergarten in NYC

I like the first paragraph of this story: More Pre-K Pupils Qualify for Gifted Programs

"The number of students qualifying for gifted kindergarten programs in New York City public school districts rose by 10 percent this year, and those qualifying for the elite citywide program jumped by a third, raising the possibility that parents and their children have begun to master an admission process that was retooled three years ago."

Friday, May 7, 2010

School choice in NYC, a problem facing large school systems

The most demanded schools are very hard to get into, even for very well qualified students, some of whom can have trouble matching: For Many, High School Match Game Continues.

"Although most of the city's 86,000 eighth graders were matched with a high school this year, every year thousands of students don't get in anywhere and it doesn't matter whether they have good grades, test scores and attendance records. They have to apply all over again, with a much more limited list of schools to choose from."

The full process in NYC, in which in the initial round students can list no more than 12 programs to apply to, is described in this paper: Abdulkadiroglu, Atila, Parag A. Pathak, and Alvin E. Roth, "Strategy-proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match,'' American Economic Review, 99, 5, Dec. 2009, pp1954-1978.

And the following paper uses the fact that the proportion of unmatched students doesn't go to zero as the school system gets large, so in a very large school system like NYC, the number of initially unmatched students won't be tiny. (That doesn't mean that allowing longer lists wouldn't help.)

Kojima, Fuhito, Parag A. Pathak, and Alvin E. Roth, " Matching with Couples: Stability and Incentives in Large Markets," working paper, April 28, 2010.

Thursday, May 6, 2010

Same sex spouses versus Defense of Marriage Act

The clash between repugnant and protected transactions will have its day in court, starting today: Gay Couples Challenge Defense Of Marriage Act

"Six years after Massachusetts became the first state in the nation to legalize gay marriage, a group of married same-sex couples will be in federal court in Boston on Thursday, arguing that their marriages should also be recognized by the federal government. "...

"Bush, Ritchie and 17 other plaintiffs argue that the federal government can't just ignore some marriage certificates and recognize others. Their lawyer, Gary Buseck with Gay and Lesbian Advocates and Defenders, says DOMA violates the equal protection clause of the Constitution because it is discriminatory.
When Congress passed the law in 1996, Buseck says, members "simply had a knee-jerk reaction that we have to bar the doors of the federal government in every conceivable way from the invasion of married gay people. I mean, they let it all hang loose."
Indeed, in heated congressional debate over DOMA in 1996, supporters argued the stakes couldn't be higher. One of DOMA's authors, former Republican Rep. Bob Barr, proclaimed, "The flames of hedonism and the flames of self-centered morality are licking at the very foundations of our society."
Barr, now a libertarian, has since called for DOMA's repeal, saying it violates states rights. President Obama also supports repeal. But his administration is in the awkward position of having to defend the law in court. As a Department of Justice official put it, we "can't pick and choose which federal laws [to] defend based on any one administration's policy preferences."
So, while government lawyers go out of their way in their legal papers to call DOMA “discriminatory,” they’re also arguing Congress did have good reason to want to preserve the status quo."

Here's my earlier post: When a protected transaction meets a repugnant one: The MA suit over the Defense of Marriage Act

Compensation for bone marrow donors: opposing views

In November I wrote about a lawsuit to overturn the ban on compensation for bone marrow donors: Compensating donors: how about bone marrow? . Commentary in support of the lawsuit suggested that perhaps bone marrow had been unintentionally included in the more general ban on compensation for organ donors.

More recently, some of the organizations connected with bone marrow have come out against compensation: Leading Transplant and Transfusion Organizations Join Forces in Effort to Keep Bone Marrow Donation Voluntary .

"Voicing concern about the potential impact on patient and donor safety, nine leading international health organizations have formed a coalition to oppose compensating people who provide bone marrow for transplantation.

"The organizations — each a leader in the field of transplantation and transfusion therapies — have joined forces in the face of a lawsuit aimed at overturning current U.S. law regarding bone marrow donation. The Institute for Justice is seeking to reverse the National Organ Transplant Act of 1984, as it applies to the prohibition on compensating bone marrow donors. ...

"The coalition includes the NMDP, America’s Blood Centers, AABB (formerly American Association of Blood Banks), the American Society for Blood and Marrow Transplantation, American Society of Histocompatibility and Immunogenetics, the American Society of Transplantation, International Society of Cellular Therapy, The Transplantation Society, and the World Marrow Donor Association.
They oppose changing the current law, citing these reasons:
Protecting Recipient and Donor Safety
A complete and truthful health history is critical to ensure that individuals are eligible to donate and that donated cells are free from infectious diseases. There is a substantial body of experience that people wanting to sell their body parts are more likely to withhold medical details and information that could harm patients.
Maintaining Altruistic Motivations
Studies have shown that compensating donors would deter those who are willing to donate for purely altruistic reasons. The eight million members of the Be The Match Registry® — in addition to the five million volunteer donors on international registries — are proof that people do not need material incentive to save a life. Current law already allows donors to be reimbursed for out-of-pocket expenses and lost wages. The NMDP and other organizations maintain funds expressly for this purpose.
Avoiding the Creation of Markets in Marrow Donation
Compensation has the potential to create markets for marrow, which could have detrimental effects for both donors and patients. Sellers influenced by possible financial gain could ignore the health risks associated with donation or be coerced by third-party organizations that would profit from a marrow sale. In addition, markets put physicians in the morally dubious position of carrying out medical procedures solely so that sellers may profit.
”The creation of markets is likely to elicit criticism from groups that oppose treating the human body and its parts as property,” said Art Caplan, professor of bioethics at the University of Pennsylvania. “To risk potentially undermining support for marrow donation by allowing donor compensation is irresponsible and short-sighted.”
Ensuring Patients’ Access to Treatment
While the Institute for Justice’s lawsuit alleges compensation might increase patients’ access to bone marrow, the opposite is true.
Changing the U.S. law to allow compensation for marrow donors would set a precedent that could hurt the current voluntary systems for organ and blood donation, potentially undermining some patients’ access to safe organ transplants and blood transfusions. If donors were compensated, the United States would no longer conform to international standards for the use of volunteer donors in cell therapies. Thus, patients in the United States may be unable to have access to the worldwide search process. This would restrict Americans’ chances of finding a match and lives may be lost. "

Wednesday, May 5, 2010

Kidney exchange time series

What is this sequence? 2, 4, 6, 19, 34, 27, 74, 121, 240, 304...

It is the number of "Non-Biol,unrel: Paired Exchange" kidney transplants in the OPTN database, i.e. the number of kidney transplants in which the donor was not a blood relative or married to the recipient, arranged by kidney exchange, in the years 2000-2009, by year. (Kidney exchange is also called paired kidney donation, kidney paired donation--KPD, and paired kidney exchange.)

Note the accelerating upward trend: the number of transplants through kidney exchange has grown by a factor of 9 since a comprehensive integration of living and deceased transplantations through both cycles and chains was proposed in 2004. For logistical reasons, the New England Program for Kidney Exchange (NEPKE) and the Alliance for Paired Donation (APD) initially started with exchanges between just two pairs. But soon larger exchanges and chains started to be commonplace, and today a nonnegligible part of the most recent growth is due to non-simultaneous chains.

The best practices seem to be spreading from hospital to hospital pretty well, organized by growing regional and other networks that coordinate exchanges. Sometimes there's some mis-coordination. There is still talk of a national exchange, although medical and other politics at a national level have so far raised some obstacles that need to be overcome.

In some moods I'm surprised that it has come so far so fast. In other moods I'm frustrated at how very slowly things have progressed. There's still lots of room to grow, and the need for kidney transplants keeps growing faster than the supply.

update: the OPTN data report requires a number of clicks once you get to their website, it is from the report "Living Donor Transplants By Donor Relation U.S. Transplants Performed : January 1, 1988 - February 28, 2010 For Organ = Kidney.
Starting from the web page http://optn.transplant.hrsa.gov/data/ , I choose “national data,” then choose category transplant, organ kidney, then click on Living Transplant by Donor Relation…

Tuesday, May 4, 2010

Moral judgments about economic transactions: Luke Coffman

Lucas (Luke) Coffman defended his dissertation yesterday. He's an eclectic experimenter, and one of his papers looks at the assignment of credit or blame, and how that is influenced by the presence of intermediaries. For example (to pick a Harvard-centric one), is Harvard viewed differently if it hires janitors directly at a low wage than if it contracts with a janitorial services company that employs the janitors?

The baseline condition of one of his experiments is easy to describe: one participant (who you can think of as Harvard) is endowed with $10, which he can divide with a second participant (who you can think of as a janitor), or instead can sell the right to divide the $10 to a third participant (who you can think of as the janitorial services company). Luke then elicits a judgment of the transaction from a fourth party, who is able to punish the first party by reducing his payoff. The results are clear: for a given (low) amount delivered to the “janitor,” punishments are considerably reduced if it is delivered indirectly, through a third party, rather than directly.

Luke designed and conducted many careful controls to better understand what is going on, and rule out plausible alternative hypotheses. (For one thing, choosing to use an intermediary doesn’t seem to fool anyone; people correctly anticipate that using an intermediary will be bad for the lowest paid member of the group, but they nevertheless find it less blameworthy.) One way to think about his results is that they suggest that fairness judgments may be very narrowly framed, and confined more than we had any reason to suspect to very direct interactions, so that intermediated interactions are judged differently than direct interactions.

Luke will be an assistant professor of economics at The Ohio State University next year.

Welcome to the club, Luke.

Monday, May 3, 2010

Angel donors and angel flights in a NEPKE kidney exchange chain

One man's gift of a kidney brings hope to four people*: A NEPKE simultaneous chain, starting with a non-directed donor at Dartmouth.

My close colleague Jerry Green flew two of the kidneys in this exchange, first one from Lebanon, NH to Philadelphia, and then one from Philadelphia to Boston, as part of the Angel Flights program. (He's a private pilot, and his wife Pam accompanies him on these trips as his turbulence control officer...).

*Update: that link doesn't work anymore, but here's the story

The slave trade had sellers as well as buyers

In a NY Times oped, Ending the Slavery Blame-Game, Henry Louis Gates Jr. writes about the slave trade.

"While we are all familiar with the role played by the United States and the European colonial powers like Britain, France, Holland, Portugal and Spain, there is very little discussion of the role Africans themselves played. And that role, it turns out, was a considerable one, especially for the slave-trading kingdoms of western and central Africa. These included the Akan of the kingdom of Asante in what is now Ghana, the Fon of Dahomey (now Benin), the Mbundu of Ndongo in modern Angola and the Kongo of today’s Congo, among several others.
For centuries, Europeans in Africa kept close to their military and trading posts on the coast. Exploration of the interior, home to the bulk of Africans sold into bondage at the height of the slave trade, came only during the colonial conquests, which is why Henry Morton Stanley’s pursuit of Dr. David Livingstone in 1871 made for such compelling press: he was going where no (white) man had gone before.
How did slaves make it to these coastal forts? The historians John Thornton and Linda Heywood of Boston University estimate that 90 percent of those shipped to the New World were enslaved by Africans and then sold to European traders. The sad truth is that without complex business partnerships between African elites and European traders and commercial agents, the slave trade to the New World would have been impossible, at least on the scale it occurred."

Sunday, May 2, 2010

Prizes as a spur to innovation: a White House memo

A March 2010 White House memo "Guidance on the Use of Challenges and Prizes to Promote Open Government," promotes the use of prizes by agencies of the U.S. government.

"[I]t is Administration policy to strongly encourage agencies to:
• Utilize prizes and challenges as tools for advancing open government, innovation, and the agency’s mission;
• Identify and proactively address legal, regulatory, technical, and other barriers to the use of prizes and challenges;
• Select one or more individuals to identify and implement prizes and challenges, potentially in partnership with outside organizations, and to participate in a government-wide "community of practice" led by the Office of Management and Budget and the Office of Science and Technology Policy; and
• Increase their capacity to support, design, and manage prizes, potentially in collaboration with external partners.
To support agencies in the execution of prizes that further the policy objectives of the Federal Government, the Administration will make available a web-based platform for prizes and challenges within 120 days. This platform will provide a forum for agencies to post problems and invite communities of problem solvers to suggest, collaborate on, and deliver solutions. Over the longer term, the General Services Administration (GSA) will also provide government-wide services to share best practices and assist agencies in developing guidelines for issuing challenges. Additionally, GSA will develop, as expeditiously as possible, a contract vehicle to provide agency access to relevant products and services, including technical assistance in structuring and conducting contests to take maximum benefit of the marketplace as they identify and pursue contest initiatives to further the policy objectives of the Federal Government. "

See also a discussion of prizes in a McKinsey report called “And the winner is …” Capturing the promise of philanthropic prizes .

Saturday, May 1, 2010

Herodotus on repugnance

Apparently it all depends on what you're used to.

From The History of Herodotus , III.38 (Written 440 B.C.E, Translated by George Rawlinson):

"Darius, after he had got the kingdom, called into his presence certain Greeks who were at hand, and asked- "What he should pay them to eat the bodies of their fathers when they died?" To which they answered, that there was no sum that would tempt them to do such a thing. He then sent for certain Indians, of the race called Callatians, men who eat their fathers, and asked them, while the Greeks stood by, and knew by the help of an interpreter all that was said - "What he should give them to burn the bodies of their fathers at their decease?" The Indians exclaimed aloud, and bade him forbear such language. "


cited by John O'Neill

Friday, April 30, 2010

It's 20 years since 1990 (and there's a conference to prove it)

A conference with the daunting title
Roth and Sotomayor: Twenty Years After has been organized at Duke next week by Atila Abdulkadiroglu, Parag Pathak, Tayfun Sonmez, William Thomson, and Utku Unver.

It turns out they're referring to our book*, not our demise. The conference website comes with a schedule and a list of participants.

I have to admit that 1990 doesn't seem so long ago to me, although a lot of game theory and market design has happened in the interval.

*This book: Roth, A.E. and M. Sotomayor Two-Sided Matching: A Study in Game-Theoretic Modeling and Analysis, Econometric Society Monograph Series, Cambridge University Press, 1990. (Winner of the 1990 Lanchester Prize.) Paperback edition, 1992.

Thursday, April 29, 2010

Polygamous marriage in Gaza

A report from Gaza in The Economist focuses on a polygamous wedding agency.

"In his crisp fourth floor office, Mr Atiri and I leafed through four albums of photos classified according to girls aged 15-25, spinsters aged 26 and above, divorcees and the depressingly fat file of widows. Waiving his finder’s fee of 50 shekels, he offered me a form where I could list the specifications for my ideal bride, according to height, weight, eye colour, education, and financial means. No matter, said Mr Atiri, that I already had a wife. Polygamous marriages were increasingly popular—and now comprised half of his business. It was, he explained, a social service for women who might otherwise be left on the shelf or bereft of a family as well as a sign of fertility and status. After all, Gaza's burly interior minister, he noted, had six wives, though in accordance with Islamic tenets he had had to let two of them go. For the sake of appearances, Mr Atiri felt obliged to set a good example, though in a nod to gender equality had let his first wife select his second. (She picked a divorcee 12 years his junior.) "How can I promote Islamic dress, if I don't wear it myself," he asks."
...
"Poverty remains a biting issue for many–husbands who used to provide second homes for their second wives now house them in second rooms. "

Wednesday, April 28, 2010

Dan Ariely in Forbes

Dan Ariely known for his creative experiments (and now famous for his book Predictably Irrational, and with another book on the way) is profiled in a Forbes column called The Empirical Economist.

The article begins with a picture that is worth a thousand words. (It suggests that Dan must have had a very classical economics education, if he read Mandeville's Fable of the Bees.:)

Tuesday, April 27, 2010

Artificial intelligence and market design

Abe Othman, a grad student in CS at CMU (who took my market design course when he was an undergrad at Harvard), has a new, not always pc blog, Constructive Economics.

Subscription dating sites: matching versus recruiting

The proprieters of the (apparently no-fee) online dating site OKCupid have a blog in which they analyze their copious data in interesting ways. A recent entry analyzes the business plans of their bigger competitors: Why You Should Never Pay For Online Dating

They argue that the number of members advertised by eHarmony and Match.com is very much larger than the number of their paying subscribers, with the result that most messages are sent to non-subscribers (who they hope will be enticed to subscribe in order to answer). This contributes, they argue, to a death spiral in which men (who send the most messages) find that most of their messages go unanswered, so they increase the number of people they message to, which makes the messages more formulaic, which decreases the response rate (because women are inundated with many impersonal messages from less than likely matches), etc.

Makes you think some kind of scarce-resource signaling would be useful, doesn't it?

Monday, April 26, 2010

Misc. repugnant transactions

Repugnant transactions are those that some people don't want others to engage in. Here are a few that caught my eye recently.

Double fees buy spot on college’s fast track: Bristol deal with for-profit eliminates waiting list, raises questions of fairness
"Bristol Community College is teaming up with a for-profit education company to offer classes in popular allied health programs, a first-of-its-kind partnership that will allow students to bypass waiting lists — provided they pay double the tuition.

The initiative, which the college will offer with The Princeton Review at its New Bedford campus beginning next fall for some programs, has stirred criticism among some educators, who say providing a fast-track education only to students who can afford to pay more than $8,000 a year runs counter to the mission of the state’s community colleges: a commitment to access and equity for all.
“It’s just unfair,’’ said Joe LeBlanc, president of the Massachusetts Community College Council. “I would be quite upset if a student who could pay two times as much jumped to the head of the line to take Bristol Community College classes. Public education, in my mind, means you’re keeping your costs as low as you possibly can. We serve everyone, and in particular, the have-nots.’’
But college officials say the partnership is a creative way for the school to meet burgeoning demand to train health care workers. Enrollment in Massachusetts community colleges has jumped 10 percent in the past year, the largest increase in recent years. And education officials expect similar collaborations on other public campuses in Massachusetts and around the country in coming years.
“In an age of scarce resources, we’re just not going to get money from our state to expand our enrollments,’’ said John Sbrega, president of Bristol Community College. “Such public-private partnerships are the wave of the future.’’"

Drug addicts offered cash to stop reproducing: Addicts are being offered up to £200 cash to be sterilised so they do not give birth to drug dependent children.
"A controversial American charity is now offering the service to addicts in the UK and has set up a helpline for those interested.
Pro-life campaigners said the offer was "inhuman". "


How do morals change? (Yale psychologist Paul Bloom, writing in Nature):
"Where does morality come from? The modern consensus on this question lies close to the position laid out by the eighteenth-century Scottish philosopher David Hume. He thought moral reason to be “the slave of the passions”. Hume's view is supported by studies that suggest that our judgements of good and evil are influenced by emotional reactions such as empathy and disgust. ...

"All this leaves little room for rational deliberation in shaping our moral outlook. Indeed, many psychologists think that the reasoned arguments we make about why we have certain beliefs are mostly post-hoc justifications for gut reactions. As the social psychologist Jonathan Haidt puts it, although we like to think of ourselves as judges, reasoning through cases according to deeply held principles, in reality we are more like lawyers, making arguments for positions that have already been established. This implies we have little conscious control over our sense of right and wrong.
I predict that this theory of morality will be proved wrong in its wholesale rejection of reason. Emotional responses alone cannot explain one of the most interesting aspects of human nature: that morals evolve. The extent of the average person's sympathies has grown substantially and continues to do so. Contemporary readers of Nature, for example, have different beliefs about the rights of women, racial minorities and homosexuals compared with readers in the late 1800s, and different intuitions about the morality of practices such as slavery, child labour and the abuse of animals for public entertainment. Rational deliberation and debate have played a large part in this development."

12-year-old bride’s divorce prompts marriage age review in Saudi Arabia
"A girl aged 12 has won a divorce from her 80-year-old husband in Saudi Arabia in a case that may help to introduce a minimum age of marriage in the kingdom for the first time. The girl’s unusual legal challenge to the arrangement generated international media attention and scrutiny of Saudi Arabia’s record of child marriages.
It also prompted the state-run Human Rights Commission to appoint a lawyer to represent her. The commission has capitalised on the case and pushed for a legal minimum age for marriage of at least 16. "

Belgium to vote on face veil ban
"Belgian lawmakers are set to vote on a proposed ban on wearing face-covering veils in public, a day after neighbouring France proposed enacting similar legislation."

Sunday, April 25, 2010

Faculty-student liasons repugnant at Yale

From the Yale alumni magazine: University bans faculty-student sex


"After more than a quarter century of debate, Yale faculty members are now barred from sexual relationships with undergraduates—not just their own students, but any Yale undergrads.
The new policy, announced to faculty in November and incorporated into the updated faculty handbook in January, is “an idea whose time has come,” says Deputy Provost Charles Long, who has advocated the ban since 1983.
In his decades at Yale, Long has seen many faculty-student romances. Most turn out fine, he says, but others are destructive to students. “I think we have a responsibility to protect students from behavior that is damaging to them and to the objectives for their being here.”
Previously, the university had prohibited such relationships only when the faculty member had “direct pedagogical or supervisory responsibilities” over the student. That remains the rule for affairs between faculty and graduate or professional students, and between grad students and undergrads."

Saturday, April 24, 2010

College rankings: how they influence applicants, and colleges

A recent paper discusses the impact of the US News and World Report rankings of colleges:

"Why is First Best? Responses to Information Aggregation in the U.S. News College Rankings," by Michael Luca and Jonathan Smith, both grad students at BU.

Here is the abstract: "We present robust evidence that the U.S. News college rankings causally affect college choice beyond their informational content about school quality. Using multiple identification strategies, we estimate that an exogenous one rank improvement leads to a 0.3%-0.9% increase in applications. We explore two potential explanations of the rank effect, showing evidence that students use rankings to improve coordination and to reduce cognitive costs of information processing. Using a novel natural experiment, we then consider the incentives that rankings create for schools. Our results suggest that the rankings caused significant changes to admissions policies, causing schools to favor students who do well along dimensions used in the rankings."

The final section of the paper, called "Rankings as a Mechanism Design Problem" concludes:
"While gaming of the USNWR rankings has come to have a very negative connotation, the rankings also present a mechanism that will only grow in importance over time. In particular, the mere presence of information provides incentives for schools to change their behavior. Further, USNWR provides one of the largest and most sophisticated examples of rankings as an accountability mechanism for schools. We have shown that the existence of the rankings led schools to focus more on attracting students who come from the top 10% of their class and have high SAT scores, probably at the expense of good students who performed worse along these observable measures. However, we have also shown that the rankings led to higher graduation rates. In net, the rankings have served their purpose by holding schools accountable for their decisions. The rankings created high powered incentives to which schools respond. This shows hope that information provision can become an important part of improving schools, especially in settings where there is school choice. As high schools and elementary schools around the country continue to look for new mechanisms in the challenging problem of school accountability, USNWR can help to highlight some of the positive and negative consequences that we should expect to see.

Assortative dating

Specialty dating sites are nothing new; and here's a story about one that specializes in beauty: Beautiful dating events: ‘It’s not shallow to say I like beautiful people’

To join Beautifulpeople.com you submit a photo, and members vote on your looks.

I wonder if this works better than sites that aim to match complements.

Friday, April 23, 2010

More on kidney donation and social networking

It continues to look like social networking may become big for kidney donation. Here's a recent story from New England: Conn. mayor donates kidney to Facebook friend

"Sanchez, a 44-year-old father whose kidneys were failing because of diabetes, sent out the request on Facebook only hesitantly and on his doctor's suggestion. He worried people might pity him -- and certainly hadn't pinned his hopes on finding a donor that way.
He didn't have long to wait. Capone Almon was the first person to respond.
"I sent him a private message and just said, 'Hey, I'll try. I'll get tested,'" Capone Almon said Wednesday. "I really felt from the very beginning that I was going to be a match and a donor. I don't know why, but I just knew it."
Sanchez had no such certainty.
"I thought she was joking. The mayor of East Haven would offer me her kidney?" said Sanchez, an office administrator. "She responded back and said, 'I am serious, I am willing to get tested.'"
...
"Capone Almon, a Democrat, was running for a second term as mayor at the time but kept the details of her medical plans a secret. She won the election as they awaited word on when she could donate the kidney, saying they grew as close as family during the lull.
"I know he voted for me, too," she joked.
The operation was set only after Capone Almon passed a battery of tests and was given a long explanation of the process, which involved three small incisions near her ribcage and a scar similar to that of a cesarean section.
"What the doctors said to me is, 'Your recipient is already sick and we're not going to make you sick to make him somewhat better,'" she said. "They do not compromise the donor's health in any way, shape or form."
Their tenuous connection was cemented into a lasting bond April 8, when doctors at Yale-New Haven Hospital removed Capone Almon's left kidney and transplanted it into Sanchez.
They were released from the hospital in less than a week and are expected to make full recoveries. His insurance paid for both their surgeries, and the mayor is back on the job in this middle-class city of about 30,000."

HT: Alexander Ruiz

Thursday, April 22, 2010

The WSJ on the football draft and market design

Writing in the Sports section of the Wall Street Journal, Reed Albergotti considers the NFL player draft, and some possible alternatives.
Why the NFL Draft Drives Economists Crazy
Fixed Costs, Variable Talent and Changes in the College Game Make Big Mistakes Unavoidable; Time for an Auction?


In an accompanying graphic, he writes "Harvard researchers Lucas Coffman, Itai Ashlagi, and Itay Fainmesser came up with an alternative based on an idea called a simultaneous ascending auction."

Along the way, the article has some nice things to say about market design.
"Thanks to market design, medical-school students are matched with hospitals through a complicated computer algorithm. Governments use "communal auctions" to distribute things like cellular bandwidth to telecommunications companies. Even the New York City public schools have used market economics to ensure parity in its school-choice system. "
...
"Three researchers at Harvard Business School—who studied under Alvin Roth, a Harvard professor and a pioneer in market-design theory—have proposed an alternative to the NFL draft.
Under their plan, all 32 teams would be given seven picks. They would have to abide by a spending cap that would go higher to lower—with the worst team (based on its record the previous season) having the most money to spend. When the bidding opened, the most sought-after players would draw multiple bids. Teams could then raise their bid as high as they'd like for a player they coveted.
Theoretically, a team could get any player it wanted—so long as it was prepared to pinch pennies on everyone else. Meanwhile, a team that didn't want to break the bank on any particular player could pick up lots of useful parts by spreading its money around evenly. Teams could also thrive by focusing on the bidding and looking for bargains.
"I think that it would significantly help teams get the right guys," said Lucas Coffman, one of the study's authors. If nothing else, Mr. Coffman said, the auction format might be more exciting than the draft, which allows for long gaps between picks.
In any case, there's some evidence the draft could be the next fix for a league that fixes everything. One NFL executive said patience is running thin. "There's a huge trail littered with guys who got the big dollars but were a bust," this person said."

Postscript: Luke Coffman, Itai Ashlagi, and Itay Fainmesser were all on a differently organized labor market this year, and will be at Ohio State, MIT Sloan, and Brown next year.

For another take on the design of the NFL labor market, by another recent Harvard grad Gregor Matvos, see his paper "Renegotiation Design: Evidence from NFL roster bonuses."

Update: Luke Coffman points out that the allocation of tickets to attend tonight's NFL draft could use some market design, and he points me to this, on Craigslist.
Experienced line sitter available to get tickets for NFL Draft - $75 (Midtown)
"I am an experienced line sitter who has worked many events. I am always on line early to secure tickets. I will be available to stand in line for tickets for the 1st 2 nights of the NFL Draft at Radio City Music hall. The procedure is as follows I will line up the evening before to get my wristband and will be back on line in order to get the tickets at 5:15 the day of the draft. The gates at Radio City will open at 6 p.m. each night. My charge for this service is $75 per ticket I can also bring people with me to secure extra tickets if you need more than 1, Please reply with the night(S) you want tickets for and how many tickets you need. Round 1 will be held Thursday night April 22nd and rounds 2-3 will be held Friday April 23rd. "

Wednesday, April 21, 2010

BBC on Suppliers of Human Bodies

The BBC has aired a 20 minute piece on Suppliers of Human Bodies . You can listen to it here. The first interviewee is my HBS colleague Michel Anteby, largely about his article A Market for Human Cadavers in All but Name?

The second interviewee is Brent Bardsley, of Anatomy Gifts Registry, part of the not-for-profit Anatomic Gift Foundation.

The interviewer is largely horrified ("trading in human flesh..." "money shouldn't be involved here..." "an unsavory business..."), but the interviewees help put the issues in perspective (and the law regards human tissues as an "anatomical gift").

Tuesday, April 20, 2010

Games, a new online game theory journal

This announcement came in today's email.

Dear All,
The first issue of Games, dated March 2010, has been published and is available under http://www.mdpi.com/2073-4336/1/1/
This first issue shows that, contrary to generally accepted practices, quick but rigorous refereeing and quick publication are feasible also in game theory. Counting both accepted and rejected papers, the average time from submission to first editorial response is currently 34 days, i.e. under 5 weeks. Concentrating on ultimately accepted papers, the overall average time from submission to publication online is currently 61 days. For me,
more instructive that these numbers have been the anecdotes. For example, I was astonished to see that it is perfectly possible to get highly detailed referee reports on a 60‐page, mathematically dense paper within a few weeks, and from established referees. Another rewarding experience concerns the reaction of authors, as for example when I asked an author of an experimental paper to conduct a full‐scale replication, expecting the revision to take months, and received the revision including the replication in a few weeks. Reasonable speed appears to be contagious.
It seems that the editorial delays we have grown used to are just an established but highly inefficient convention‐‐‐nothing more. Still, transitions from an inefficient equilibrium to a more efficient one can be notoriously difficult to implement. The first (short) issue has been completed, and the first paper in issue 2 is
already out, but we are still a long way from establishing the journal and the associated quick refereeing process. For this, I would like to ask for your help.
What can you do for the journal? First, talk about it and encourage good researchers to submit, quoting the speed of the editorial process. Second, if you are not already doing it, consider editing a special issue (feel free to contact me with your proposals). Third, consider submitting your own work. Related to the last point, currently Games would especially welcome literature surveys in your respective fields; although of course they would be submitted to the same rigorous (but quick!) refereeing process as any other paper, feel free to propose a topic so that the scope can be discussed in advance.
I would like to take this opportunity to thank you all for your support. Special thanks go to those who have already acted as referees and to the Guest Editors. I look forward to Issue 2!
Carlos AlĂłs‐Ferrer
Editor‐in‐Chief, Games
‐‐
Frauke Muenzel, Managing Editor
Games Editorial Office
Molecular Diversity Preservation International (MDPI)
Kandererstrasse 25, CH‐4057 Basel, Switzerland
Tel. +41 61 683 77 34
Fax +41 61 302 89 18
E‐mail: games@mdpi.org
http://www.mdpi.com/journal/games/

The Market and Marketization

I'm following at a distance a series of workshops in Helsinki on the philosophy and sociology of economics: The Market and Marketization
"Is there something wrong with the market for human kidneys, child labour, chemical weapons, or greenhouse gas emissions? Is it possible to have markets for electoral votes, scientific ideas, love, moral praise, or salvation? Do we have markets in our heads? How do models of the Market relate to real world markets? How do the diverse models and theories of the Market in various scientific disciplines relate to one another? In what sense is the Market mechanism a mechanism? Does the same mechanism function outside of the ordinary economy? Does marketization always lead to more efficiency? Does it increase human happiness and wellbeing? What are its preconditions and consequences regarding our moral character? Does the marketization of society have any limits at all? "

Participants (and hangers on) were each asked to introduce ourselves to an interdisciplinary audience. My contribution:

"Two papers of mine that might be helpful for an interdisciplinary readership are
Roth, Alvin E. "What have we learned from market design?" Hahn Lecture, Economic Journal, 118 (March), 2008, 285-310.
Roth, Alvin E. "Repugnance as a Constraint on Markets", Journal of Economic Perspectives, 21:3, Summer, 2007, pp. 37-58."

Monday, April 19, 2010

A living lung donor is running today in the Boston marathon

A stranger, a gift, and a marathon miracle: Ellyn Cohen needed a lung to live, then a woman she’d never met offered hers

"It was an unusual act of kindness. Last year, out of 1,661 lung transplants in the United States, only one came from a living donor. In 2008, the number of living lung donors was zero, according to the Organ Procurement and Transplantation Network, the government agency that coordinates national waitlists for organ transplants. And in 2004, the year Greene made her donation, she was one of just 28 living lung donors out of 1,172 transplants. That year, 492 people died while waiting for a lung.
As uncommon as living lung donors are, it is even less common for the organ to come from a stranger. And the way Greene found out about Cohen’s plight — from a mass e-mail forwarded by a friend — makes the story all the more incredible, said Sean Fitzpatrick, spokesman for the New England Organ Bank, the federally designated nonprofit organization that identifies deceased donors and recovers organs and tissues for transplants in the region."
...
"A few weeks after the surgery, Greene was playing tennis. The four lobes that remain in her two lungs are one less than a normal healthy person has. But her doctors have told her that her lungs work better than those of many healthy people. Two years ago, Greene started running. She decided to do the marathon to mark her half-century milestone. She got a charity number from her spouse, Angela Cenzalli, who works for the Special Olympics. But she will wear the shirt of the New England Organ Bank, to draw attention to the plight of the more than 1,800 people in the country awaiting lung transplants.
“If more people registered as donors we wouldn’t have to take parts out of living bodies,’’ Greene said. “I’m not asking people to donate their organs when they are alive.’’
She is not expecting to finish the race in less than five hours.
“I like to think that I’ll be fairly high up among the four-lobe people,’’ she smiled."

Sunday, April 18, 2010

Civet coffee

Here's a story from the NY Times that, if published on April 1, would have won a prize.

From Dung to Coffee Brew With No Aftertaste
"Costing hundreds of dollars a pound, these beans are found in the droppings of the civet, a nocturnal, furry, long-tailed catlike animal that prowls Southeast Asia’s coffee-growing lands for the tastiest, ripest coffee cherries. The civet eventually excretes the hard, indigestible innards of the fruit — essentially, incipient coffee beans — though only after they have been fermented in the animal’s stomach acids and enzymes to produce a brew described as smooth, chocolaty and devoid of any bitter aftertaste.
As connoisseurs in the United States, Europe and East Asia have discovered civet coffee in recent years, growing demand is fueling a gold rush in the Philippines and Indonesia, the countries with the largest civet populations. Harvesters are scouring forest floors in the Philippines, where civet coffee has emerged as a new business. In Indonesia, where the coffee has a long history, enterprising individuals are capturing civets and setting up minifarms, often in their backyards.
Neither the Indonesian government nor the Association of Indonesia Coffee Exporters breaks down civet coffee’s tiny share of Indonesia’s overall coffee production. The Association of Indonesian Coffee Luwak Farmers, created in 2009 to handle the rising demand for civet coffee, or kopi luwak, as it is called in Indonesian, said most civet producers were small-time businessmen who exported directly overseas.
Given the money at stake, fake and low-grade civet coffee beans are also flooding the market. "
...
"Competition is touching off fierce debates. What is real civet coffee, anyway? Does the civet’s choice of beans make the coffee? Or is it the beans’ journey through the animal’s digestive tract? Can the aroma, fragrance and taste of beans from the droppings of a caged civet ever be as tasty as those from its wild cousin? "

Update. Bettina Klaus writes from Lisbon (where she's stranded by the Icelandic ash cloud), "I found a link on further "Disgusting Delicacies" http://www.walletpop.com/specials/bw/disgusting-delicacies/. Goat poop oil also sounds nice. And the coffee can be mail ordered: http://www.animalcoffee.com/ "

Live kidney donation via twitter and other social networking sites

For many years the transplant community was very uneasy about solicitation of live kidney donors, but that seems to be changing. Web sites like MatchingDonors.com have achieved much more widespread acceptance (and they have in turn started to integrate themselves with kidney exchange programs).


Arthur Matas, the Director of Renal Transplant at U. Minnesota, has a blog post on Kidney donation via Twitter. Here's a newspaper article that follows the story: Kidney Transplant A Success Among Cyber Friends.


Social network sites may be just the sort of thing needed to help people let their friends know that they need a kidney, without putting any particular friend on the spot with a direct request.

Saturday, April 17, 2010

Boston Globe on school choice

The problem with school choice is not enough seats at good schools. And in every city I've dealt with, there are two political parties when it comes to school choice: the "walk to school" party, who live near good schools, and the "school choice" party, who don't. Here's how it looks to the Globe, following a season in which a city councillor's child did not get a place in his local kindergarten.

City tries anew to end school-placement frustrations: Even those with clout chagrined by lottery
By James Vaznis, Globe Staff April 16, 2010
"Among young families in West Roxbury, it was one of the most closely watched lotteries: Would the 3-year-old son of their neighborhood city councilor win entry into a public school pre-kindergarten program, particularly a coveted placement just down the street from his home?
After all, a host of other children in the city’s well-connected political families have received their top choices in the school lottery in the past, leading to a slew of conspiracy theories that the computer-generated algorithm was subject to political tinkering.
As it turned out, luck was not on the side of City Councilor John Tobin and his wife, Kate. Their son was wait-listed recently at all four of their choices, an ironic outcome for a politician who long advocated for greater leeway in allowing students to attend neighborhood schools.
Being locked out is a crushing event experienced by hundreds of parents across the city each year, prompting some to flee to the suburbs. For Tobin, the disappointment has added a personal twist fueling his crusade for changes in the city’s school-placement system.
“I’m just like everyone else tremendously disappointed by this system,’’ he said yesterday in a phone interview. “Kids in a neighborhood should get the first chance at their neighborhood school’s seats, and those left open could be filled by other students. Schools should just be part of a neighborhood as community centers and libraries.’’
Tobin, who penned a recent column about his family’s lottery loss for the West Roxbury Transcript, is stepping up his push as the district embarks on a new effort that could lead to a radical overhaul in the way the city has been assigning students to school for decades.
The new effort has two parts. First, civil rights lawyers and others are helping the district with a federal grant to find ways to change the student-assignment system without disenfranchising the city’s poorest children. Meanwhile, Superintendent Carol R. Johnson is working to raise the quality of education in the city’s poorest neighborhoods, calling it the Circle of Promise.
Under the current system, established to replace a court-created desegregation plan, the city is divided into three sprawling-geographic regions, allowing parents to choose from dozens of schools in their zone. For instance, it allows a student from a housing development in Roxbury — which has a disproportionate share of low-performing schools — to attend a high-quality school in West Roxbury, a city neighborhood with a suburban character.
The system has created stiff competition for the city’s top-performing schools, often leading to heartache and bitterness when families don’t get their top choices, especially in kindergarten.
Adding confusion at decision time is mystery over the complex computerized program that randomly assigns students. The formula, among other factors, gives weight to applicants who have a sibling at a school and allows half of seats at a school to go to applicants who live a certain distance away from the school.
Some families, Tobin said, question the lottery system’s fairness. During last fall’s mayoral race, a challenger to Mayor Thomas M. Menino and then city councilors Sam Yoon and Michael Flaherty noted in a debate that the trio had family members at top-choice schools.
“People think there are shenanigans that go on with the lottery system,’’ Tobin said. “When something is done behind closed doors, it raises eyebrows.’’
Matthew Wilder, a school department spokesman, defended the lottery system, saying that Tobin’s story shows “how blind the system is.’’ Even one of the mayor’s grandchildren didn’t get in a pre-kindergarten program in recent years.
Wilder noted, however, that about 80 percent of children who applied this year in the first round for a seat in pre-kindergarten, an optional city program with limited capacity, got one.
“We don’t feel this is an assignment issue, but a space issue,’’ Wilder said. “We don’t have enough room for everyone who wants a seat for their 4-year-old. We are very lucky in Boston we offer full-day kindergarten for 4-year-olds. Not a lot of cities can say that.’’
Tobin said every year around this time he has conversations “with people calling me up in tears’’ because they did not get into any of their chosen schools — whether for kindergarten or some other grade — prompting them to consider leaving the city for the suburbs. Tobin, who grew up in Mattapan and West Roxbury, said many of his friends have departed for Walpole.
Theresa Strang, a stay-at-home mother in West Roxbury, whose daughter was wait-listed this year for pre-kindergarten, is organizing a group of mothers to push for changes to the system.
“Everyone is talking about moving,’’ she said. “I know a woman who put her house on the market. . . . Why don’t they invest in neighborhoods and make them better?’’
Past attempts by the city to change the system have collapsed amid a tug-of-war over school access. Last year intense community opposition doomed a plan to break the city into five zones.
Tobin said he is not optimistic about seeing a return to more neighborhood schools. In some respects, he said, the city is a victim of its own success as education at many elementary schools has improved with the addition of such programs as full-day pre-kindergarten.
Still, he said, there are not enough high-quality schools.
“We live on Joyce Kilmer Road, and we can see the Joyce Kilmer School,’’ which was the family’s top choice and is one of the highest-performing schools in the city, Tobin said. “Explain the logic of why my son can’t go to that school. I will go to my grave not understanding that one.’’

Friday, April 16, 2010

Matching with preferences for colleagues

Marek Pycia at UCLA has a revised paper on matching when you care who your colleagues are:
Stability and Preference Alignment in Matching and Coalition Formation


Abstract: In any state of nature, agents have preference rankings over coalitions they belong to. Given a state of nature, agents’ preferences are pairwise aligned if any two agents in the intersection of any two coalitions prefer the same one of the two coalitions. Our main result says that under mild regularity conditions there exists a core stable coalition structure in every state of nature if, and only if, the preferences are pairwise-aligned in every state of nature. Pairwise alignment is satisfied by some standard models of payoff determination such as Nash bargaining that were not previously recognized as related to stability. As applications, we study complementarities and peer effects in many-to-one matching, the assortative structure of coalitions, and the impact of inequality among agents on coalition formation.

Thursday, April 15, 2010

Waiting lists

A pessimistic story in the NY Times about college admissions waiting lists, which are long this year: For Students, a Waiting List Is Scant Hope

"The admission process is a complicated dance of supply and demand for colleges. And this spring, many institutions have accepted fewer applicants, and placed more on waiting lists, until it becomes clear over the next few weeks how many spots remain.
M.I.T., which had a 6 percent increase in applicants, increased its waiting list by more than half, to 722. Last year, it accepted fewer than 80 from that list. Yale, which had a slight dip in applications this year yet still admitted fewer than 8 percent of applicants, placed nearly 1,000 others on its waiting list, an increase of more than 150. Dartmouth increased its list by about 80, to 1,740."
...
"Like its competitors, Duke does not rank students on its waiting list. Instead, decisions about who will rise to the top are often a function of what the admissions office perceives as deficiencies in the next freshman class. There might be, for example, a surplus of aspiring engineers and not enough potential English majors, or too few students from Florida. Or there might be an unexpected shortage of oboe players.
While Mr. Guttentag encourages students on the waiting list to send him a one-page letter — or a video of 60 seconds or less — letting him know how strongly they wish to attend, and why, they can do little to improve their chances. "...

"Since waiting list offers went out in late March, Mr. Guttentag and his colleagues have been deliberating whether to end the suspense for at least several hundred who are on it — those who probably have little hope of coming off.
Another reason the list is so long this year, he said, is that he and his colleagues were so overwhelmed by the volume of applicants that they ran out of time.
“What we could have done, had we had another week,” he said, “was to look at everybody on the waiting list and say, ‘Do they all need to be on?’ ”
“Of all the priorities,” he added, “that was not in the top two or three.” "

Wednesday, April 14, 2010

Egg donor compensation

Study hard. The Globe reports: Yes, top students reap rich rewards, even as egg donors
Would-be parents want high scorers


"The Harvard Crimson was one of three college newspapers that ran an identical classified ad seeking a woman who fit a narrow profile: younger than 29 with a GPA over 3.5 and an SAT score over 1,400. The lucky candidate stood to collect $35,000 if she donated her eggs for harvesting.

The ad was one of 105 college newspaper ads examined by a Georgia Institute of Technology researcher who issued a report yesterday that appeared to confirm the long-held suspicion that couples who are unable to have children of their own are willing to pay more for reproductive help from someone smart. The analysis showed that higher payments offered to egg donors correlated with higher SAT scores.
“Holding all else equal, an increase of 100 SAT points in the score of a typical incoming student increased the compensation offered to oocyte donors at that college or university by $2,350,’’ wrote researcher Aaron D. Levine.
The paper, published in the March-April issue of the Hastings Center Report, examined ads in 63 student newspapers in spring 2006 and was billed as the first national cross-sectional sample of ads for egg donors. "
...
"Concerned about eggs being treated as commodities, and worried that big financial rewards could entice women to ignore the risks of the rigorous procedures required for harvesting, the American Society for Reproductive Medicine discourages compensation based on donors’ personal characteristics. The society also discourages any payments over $10,000.
Levine’s paper points out, however, that no outside regulator enforces those guidelines and that they are often ignored.
Of the advertisements Levine examined, nearly one-quarter offered donors more than $10,000, and about one-quarter of the ads listed specific requirements, such as appearance or ethnicity, also in violation of guidelines that discourage greater payment for particular personal characteristics."
...
"The issue of the report containing Levine’s analysis also offers a counterperspective from John A. Robertson, who chaired the ethics committee of the American Society of Reproductive Medicine. He casts doubt on the notion that it is an ethical problem to pay more for eggs from a woman with a particular ethnic background or high IQ. “After all, we allow individuals to choose their mates and sperm donors on the basis of such characteristics,’ Robertson wrote. “Why not choose egg donors similarly?’’ "

See also The Value of Smart Eggs from The Faculty Lounge by Kim Krawiec.
"In his response accompanying the report, John Robertson (Texas, law) questions whether there are really any ethical problems raised by the study – after all, Levine finds compliance with the ASRM guidelines in at least half the advertisements in his sample. I would argue, however, that Levine’s study highlights a serious ethical issue, though it is not infertile couples or the agencies working on their behalf whose behavior is ethically troubling. It is ASRM’s paternalistic and misguided attempts to control oocyte donor compensation through the same type of professional guidelines that courts have rejected when employed by engineers, lawyers, dentists, and doctors that should raise an ethical red flag."

And here is the Hastings Center Report: Self-Regulation, Compensation, and the Ethical Recruitment of Oocyte Donors by Aaron D. Levine

Tuesday, April 13, 2010

Biological markets: exchange of goods and services among non-human species

From the web pages of the French scientist Ronald Noe:

Biological Markets. "The label 'biological markets' was proposed by Noë & Hammerstein (1994; 1995) for all interactions between organisms in which one can recognise different classes of 'traders' that exchange commodities, such as goods (e.g. food, shelter, gametes) or services (e.g. warning calls, protection, pollination). "
"The characteristics of biological markets are found in mating systems ('mating markets'), mutualisms between members of different species and cooperation among conspecifics

"The term 'market' was chosen because it is assumed that shifts in supply and demand cause changes in the exchange value of the commodities traded. Important phenomena are: partner choice and outbidding.

"Formal properties of Biological Markets
Commodities are exchanged between individuals that differ in the degree of control over these commodities
Trading partners are chosen from a number of potential partners.
There is competition among the members of the chosen class to be the most attractive partner. This competition by 'outbidding' causes an increase in the value of the commodity offered.
Supply and demand determine the bartering value of commodities exchanged.
Commodities on offer can be advertised. As in commercial advertisements there is a potential for false information."

"Explicitly excluded is the use of physical force or threat to appropriate commodities or to eliminate the competition. The use of force is common, of course, as are theft and foul play in human markets, but one needs different paradigms to describe these phenomena.

"Examples of Biological Markets:
Obligate pollination mutualisms (to be added)
Ant protection mutualisms (to be added)
Mycorrhiza & rhizobia
Cleaner fish
Grooming in primates
Cooperative breeders
Delayed plumage maturation
Nest building in red bishops
links to further examples"

See also Market Models, on papers using game theory and comparative advantage to explore biological markets, which includes a bibliography of "Related theoretical approaches that also revolve around phenomena such as partner choice and competition by outbidding ..."

Monday, April 12, 2010

Unpaid workers: athletes and interns

Several blogs and news stories follow unpaid parts of the labor force, college athletes and student interns.

For Love of The Game (And The Money) from The Faculty Lounge by Kim Krawiec and Against the NCAA Cartel from The Volokh Conspiracy by Ilya Somin both consider the unpaid status of college athletes. The latter story explicitly mentions the high salaries of college coaches in basketball and football to indicate that these are profit making entertainment businesses despite the fact that the workers/players/students are unpaid.

There has also been a good deal of attention to the recent NY Times story headlined Growth of Unpaid Internships May Be Illegal, Officials Say

"With job openings scarce for young people, the number of unpaid internships has climbed in recent years, leading federal and state regulators to worry that more employers are illegally using such internships for free labor. "...

"Ms. Leppink said many employers failed to pay even though their internships did not comply with the six federal legal criteria that must be satisfied for internships to be unpaid. Among those criteria are that the internship should be similar to the training given in a vocational school or academic institution, that the intern does not displace regular paid workers and that the employer “derives no immediate advantage” from the intern’s activities — in other words, it’s largely a benevolent contribution to the intern.
No one keeps official count of how many paid and unpaid internships there are, but Lance Choy, director of the Career Development Center at Stanford University, sees definitive evidence that the number of unpaid internships is mushrooming — fueled by employers’ desire to hold down costs and students’ eagerness to gain experience for their rĂ©sumĂ©s. Employers posted 643 unpaid internships on Stanford’s job board this academic year, more than triple the 174 posted two years ago.
In 2008, the National Association of Colleges and Employers found that 83 percent of graduating students had held internships, up from 9 percent in 1992. This means hundreds of thousands of students hold internships each year; some experts estimate that one-fourth to one-half are unpaid. "

Some regulatory guidance from California: California Labor Dept. Revises Guidelines on When Interns Must Be Paid
"Many wage and hour regulators maintain that interns must be paid if their work is of “immediate advantage” to the employer, but the California agency’s top lawyer advised that such an advantage can be offset — and the intern not be paid — if the employer provides close supervision and lays out money for training.
Over all, the guidance from the California Division of Labor Standards Enforcement was emphatic that for internships to be unpaid, they must be educational and predominantly for the benefit of the intern, not the employer. "

Some of these discussions have something in common with the discussions in the transplant community about compensation for donors.

Sunday, April 11, 2010

Couples on the labor market

One of the longstanding puzzles in market design is why we have been as lucky as we have been in the design and operation of labor market clearinghouses that allow couples to state preferences over pairs of jobs. You can't get a stable matching without allowing couples to state their preferences this way, but when they do, the set of stable matching can be empty. But it almost never is, in practice.

Here's a first step towards understanding that:
Kojima, Fuhito, Parag A. Pathak, and Alvin E. Roth, " Matching with Couples: Stability and Incentives in Large Markets," working paper, April 8 2010.

Abstract: Complementarities pose problems in models of two-sided matching markets. This has been a longstanding issue in the design of centralized labor market clearinghouses that need to accommodate complementarities due to couples, as in the US market for medical doctors. These clearinghouses aim for a stable matching but a stable matching does not necessarily exist when
couples are present. This paper provides conditions under which a stable matching exists with high probability in large markets. Moreover, we present a mechanism that finds a stable matching with high probability and in which truth-telling by all participants is an approximate equilibrium. We relate these theoretical results to data from the labor market for clinical psychologists, in which stable matchings exist for all years of our data, despite the presence of couples.

Saturday, April 10, 2010

Networks in markets that unravel, and those that don't: Itay Fainmesser

Itay Fainmesser defended his dissertation yesterday.

One of the papers in his dissertation concerns job markets that have “unraveled” so that a large part of the market consists of early, exploding offers. He develops a network model, motivated by the observation that when many markets unravel (as when medical labor markets start to hire doctors well over a year before they begin employment), hiring also becomes more local (as hospitals start to hire students from local medical schools, etc.). Itay takes this as evidence that when hiring is very early, employers are forced to rely more on their local networks for information. He builds a network model that allows him to investigate which properties of local networks lead to unraveling, and which lead to later hiring. In this model, information about the quality of candidates eventually becomes widely available, but early information about candidate quality can only be reliably transmitted along links of a network. (When Markets Unravel: Social Networks, Information Transmission, and the 'Hiring Frenzy' older version here.)

Another of his papers tackles the question of cooperation in repeated games, where the possible interactions are constrained by a network, and he asks which buyer-seller network structures will support persistent cooperation (where sellers have an opportunity to cooperate by shipping a high quality good, or to defect by shipping a low quality good). It’s a hard problem, and (in a third paper) he and a coauthor invent models and tools to deal with it (in a large-network framework), that allow him to turn some difficult non-monotonic relationships among networks into well behaved statements about the value of links. (Community Structure and Market Outcomes: Towards a Theory of Repeated Games in Networks )

Itay will be an assistant professor of economics at Brown next year.

Welcome to the club, Itay.

Friday, April 9, 2010

Liver exchange

Living Donor Exchange Poses New Option for Liver Transplantation "Two major transplant centers in Hong Kong and South Korea released results from their paired donor exchange programs for living donor liver transplantation (LDLT). A single paired exchange, performed by the Hong Kong team under emergency circumstances, was a success. The Korean team reported 16 donor exchanges conducted over a 6-year period were successful. Full details of this novel approach to organ transplantation appear in the April issue of Liver Transplantation."

And here are the two papers and abstracts: 

  Paired Donor Interchange to Avoid ABOIncompatible Living Donor Liver Transplantation, by See Ching Chan, Chung Mau Lo, Boon Hun Yong, Wilson J. C. Tsui, Kelvin K. C. Ng, and Sheung Tat Fan, Queen Mary Hospital, University of Hong Kong, Hong Kong, China 

"We report an emergency paired donor interchange living donor liver transplant performed on January 13, 2009. The 4 operations (2 liver transplants) were performed simultaneously. The aim was to avoid 2 ABO-incompatible liver transplants. One recipient in acute liver failure underwent transplantation in a high-urgency situation. The abdomen of the other recipient had severe adhesions from previous spontaneous bacterial peritonitis that rendered the recipient operation almost impossible. The ethical and logistical issues are discussed. Approaches adopted in anticipation of potential adverse outcomes are explained in view of the higher donor and recipient mortality and morbidity rates in comparison with kidney transplantation." Liver Transpl 16:478-481, 2010 

  Exchange Living Donor Liver Transplantation to Overcome ABO Incompatibility in Adult Patients, by Shin Hwang, Sung-Gyu Lee, Deok-Bog Moon, Gi-Won Song, Chul-Soo Ahn, Ki-Hun Kim, Tae-Yong Ha, Dong-Hwan Jung, Kwan-Woo Kim, Nam-Kyu Choi, Gil-Chun Park, Young-Dong Yu, Young-Il Choi, Pyoung-Jae Park, and Hea-Seon Ha, Asan Medical Center, University of Ulsan College of Medicine, Seoul, Korea 

"ABO incompatibility is the most common cause of donor rejection during the initial screening of adult patients with end-stage liver disease for living donor liver transplantation (LDLT). A paired donor exchange program was initiated to cope with this problem without ABO-incompatible LDLT. We present our results from the first 6 years of this exchange adult LDLT program. Between July 2003 and June 2009, 1351 adult LDLT procedures, including 16 donor exchanges and 7 ABO-incompatible LDLT procedures, were performed at our institution. Initial donor-recipient ABO incompatibilities included 6 A to B incompatibilities, 6 B to A incompatibilities, 1 A to O incompatibility, 1 A+O (dual graft) to B incompatibility, 1 O to AB incompatibility, and 1 O to A incompatibility. Fourteen matches (87.5%) were ABO incompatible, but 2 (12.5%) were initially ABO-compatible. All ABO-incompatible donors were directly related to their recipients, but 2 compatible donors were each undirected and unrelated directed. After donor reassignment through paired exchange (n = 7) or domino pairing (n = 1), the donor-recipient ABO status changed to A to A in 6, B to B in 6, O to O in 1, A to AB in 1, A+O to A in 1, and O to B in 1, and this made all matches ABO identical (n = 13) or ABO-compatible (n = 3). Two pairs of LDLT operations were performed simultaneously on an elective basis in 12 and on an emergency basis in 4. All donors recovered uneventfully. Fifteen of the 16 recipients survived, but 1 died after 54 days. In conclusion, an exchange donor program for adult LDLT appears to be a feasible modality for overcoming donor-recipient ABO incompatibility."Liver Transpl 16:482-490, 2010. V