The effects of Israel's new organ transplantation law on family consent for deceased donation

Deceased donor organs are a scarce resource with the property that how they are allocated may influence their scarcity, by influencing the decisions of potential donors and their families.  Recent changes in Israeli law give us a window on this...
Incentivizing Authorization for Deceased Organ Donation With Organ Allocation Priority: The First 5 Years
by A. Stoler, J. B. Kessler, T. Ashkenazi, A. E. Roth, J. Lavee

American Journal of Transplantation, Volume 16, Issue 9, September 2016
Pages 2639–2645

Abstract

The allocation system of donor organs for transplantation may affect their scarcity. In 2008, Israel's Parliament passed the Organ Transplantation Law, which grants priority on waiting lists for transplants to candidates who are first-degree relatives of deceased organ donors or who previously registered as organ donors themselves. Several public campaigns have advertised the existence of the law since November 2010. We evaluated the effect of the law using all deceased donation requests made in Israel during the period 1998–2015. We use logistic regression to compare the authorization rates of the donors’ next of kin in the periods before (1998–2010) and after (2011–2015) the public was made aware of the law. The authorization rate for donation in the period after awareness was substantially higher (55.1% vs. 45.0%, odds ratio [OR] 1.43, p = 0.0003) and reached an all-time high rate of 60.2% in 2015. This increase was mainly due to an increase in the authorization rate of next of kin of unregistered donors (51.1% vs. 42.2%). We also found that the likelihood of next-of-kin authorization for donation was approximately twice as high when the deceased relative was a registered donor rather than unregistered (89.4% vs. 44.6%, OR 14.27, p < 0.0001). We concluded that the priority law is associated with an increased authorization rate for organ donation.

Notes from China 2: Lanzhou

I spoke in Lanzhou on Thursday, in Gansu Province, as part of a festival promoting the revival of the Silk Road as a market for international trade. The sponsors were Time Weekly, Readers Group (a wide circulation, Readers Digest kind of publisher...www.duzhe.com), and the provincial government.

Here's an interview published in China Daily:

诺贝尔经济学奖得主埃尔文·罗斯：中国市场必须由中国经济学家设计
作者：孟肖 来源：时代周刊 2016-09-20

Google translate renders the headline this way: Nobel laureate Erwin Ross: Chinese market must be designed by a Chinese economist

Author: Meng Xiao Source: Times 2016-09-20 

Kwong Sunrise Photo--Al Roth 

The provincial museum is well worth a visit.

And the Yellow River has some beautiful bridges: I took these photos from a riverboat at night.

I recommend the Lanzhou beef noodles, which I had for lunch  The banquet food in Lanzhou is also easy for Americans--fish, lamb, beef and Yak were prominent. (Yak is a kosher animal, by the way...). And toasting goes on throughout, not just in wine but in 100 proof rice liquor...

And in case you were wondering how to spell Erwin Ross in Chinese, I think this is it:

Notes from China 1: Changsha

The first of two stops on my recent trip to China was in Changsha, in Hunan province.  I spoke about market design, following the publication of Who Gets What and Why in Chinese (the Chinese title was changed to The Sharing Economy, but the subtitle was still The New Economic of Matchmaking and Market Design).

Here's a picture I took of the stage, before the talk began:

Here are links to some press coverage, including a visit to ResGreen corporation, a sponsor:

Full coverage

诺奖得主埃尔文-罗斯长沙谈共享经济：核心在于稳定匹配 星辰在线 - ‎Sep 20, 2016‎ 今日，诺贝尔经济学奖获得者埃尔文-罗斯(Alvin E. Roth)携最新的研究成果来到湖南长沙，走进了以绿之韵集团为代表的中国本土企业，与中国的商业巨鳄、学者专家共同探讨共享经济时代下的市场设计话题。 诺贝尔经济学奖得主埃尔文·罗斯：中国市场必须由中国经济学家设计 新浪网 - ‎Sep 19, 2016‎ 罗斯（Alvin E. Roth），罗斯因在博弈论、市场设计和实验经济学领域作出的显著贡献，而于2012年获得诺贝尔经济学奖，目前罗斯在哈佛商学院担任经济及工商管理学教授，他多次访问中国，对目前中国经济的 ... 诺奖得主罗斯走进绿之韵谈共享经济：核心在于稳定匹配 湖南在线 - ‎Sep 21, 2016‎ 埃尔文·罗斯(Alvin E。 Roth)考察湖南企业绿之韵公司. 罗斯此行携最新的研究成果，走进了以绿之韵集团为代表的中国本土企业，与中国的商业巨鳄、学者专家共同探讨共享经济时代下的市场设计话题。出席本 ... 诺贝尔经济学奖得主罗斯考察浏阳经开区企业 红网 - ‎Sep 20, 2016‎ 红网综合讯据浏阳经开区消息9月20日上午，诺贝尔经济学奖获得者埃尔文•罗斯（Alvin E. Roth）一行来到浏阳经开区绿之韵集团考察。浏阳经开区党工委副书记、管委会主任郭力夫，绿之韵集团战略发展顾问、 ...

By the way, the food in Hunan is exotic, here's our lunch menu, which has some unusual items (translated for me by Ms Keny Chen):

Lunch Menu 午宴菜品
Cold Dishes｜冷菜
Chrysanthemum with special sauce 凉拌苦菊
Vinegar walnut kernel 醋泡核桃仁
Preserved duck egg mixed with pepper 擂辣椒皮蛋
Sauced radish peels 萝卜皮
Salty chicken feet 盐焗凤爪
Fennel with special sauce 凉拌茴香
Soup｜汤
海马人参乳鸽汤
Main Dishes｜热菜
Lobster and salmon sashimi 龙虾三文鱼双拼刺身
Roast suckling pig 鸿运烤乳猪
Roasted goose 烧鹅
Braised local tortoise with soy sauce 红烧土乌龟
Stir-fry snake with spicy sauce 香辣蛇
Lactarius deliciosus braised in brown sauce 黄焖寒菌＊
Steamed Leopard Coral Grouper 清蒸蓝东星斑
Steamed scallop with minced garlic and vermicelli 蒜蓉粉丝蒸扇贝
Sautéd razor shell 口味圣子王
Poached domestic chicken 清炖土鸡
Stir-fry snow pea and pleurotus nebrodensis (bailing mushroom) 荷兰豆炒白灵菇
Spiced beef 酱香肉
Steamed ribs with sticky rice and pumpkin 金瓜糯香骨
Stir-fry preserved taro stripe with dried paprika 干椒炒酸芋头丝
Stir-fry diced beef and capsicum 彩椒炒牛仔粒
Stir-fry shrimp with egg white 芙蓉百合
Stir-fry pickles with sliced conch 酸萝卜炒螺片
Stir-fry Chinese edible frog 爆炒田鸡
Stir-fry nostoc commune (agaric) 清炒地木耳
Stir-fry bitter melon with green pepper 清炒苦瓜
Stir-fry Chinese kale (Kai-lan) 清炒芥兰
Staples｜主食
Fried Glutinous Rice Balls with Sesame 大麻果
Potsticker 锅饺

Celebration of David Kreps

I was away and missed the academic festival to mark Dave Kreps' 65th birthday. But here's a nice account of it (after a non-sequitur first paragraph) by David Warsh at Economic Principals:
It Takes (an Invisible) College 

"A celebration last week of the sixty-fifth birthday of David Kreps, of Stanford University’s Graduate School of Business, marked the scholarly contributions of one of the leading figures in the integration of game theory into economics.  "

School choice in England

Resettlement as a matching problem: Bazzi, Gaduh, Rothenberg, and Wong on Population Resettlement in Indonesia

There's a lot of discussion of how best to resettle refugees internationally, and of course we might be able to learn a lot about that by looking at the resettlement of internally displaced people, and other migrants.  Here's a recent AER paper that looks at the matching component and finds that it matters who goes where.

Skill Transferability, Migration, and Development: Evidence from Population Resettlement in Indonesia
By Samuel Bazzi, Arya Gaduh, Alexander D. Rothenberg, and Maisy Wong

Abstract: We use a natural experiment in Indonesia to provide causal evidence
on the role of location-specific human capital and skill transferability in shaping the spatial distribution of productivity. From 1979–1988, the Transmigration Program relocated two million migrants from rural Java and Bali to new rural settlements in the Outer Islands. Villages assigned migrants from regions with more similar agroclimatic endowments exhibit higher rice productivity and nighttime light intensity one to two decades later. We find some evidence of migrants’ adaptation to agroclimatic change. Overall, our results suggest that
regional productivity differences may overstate the potential gains
from migration.  

Reputation in online marketplaces

Two recent NBER papers tell us about trust, quality, and reputation in online marketplaces.

BUYING REPUTATION AS A SIGNAL OF QUALITY:
EVIDENCE FROM AN ONLINE MARKETPLACE
Lingfang (Ivy) Li, Steven Tadelis, Xiaolan Zhou
Working Paper 22584, http://www.nber.org/papers/w22584

ABSTRACT: Reputation is critical to foster trust in online marketplaces, yet leaving feedback is a public good that can be under-provided unless buyers are rewarded for it. Signaling theory implies that only high quality sellers would reward buyers for truthful feedback. We explore this scope for signaling using Taobao's "reward-for-feedback" mechanism and find that items with rewards
generate sales that are nearly 30% higher and are sold by higher quality sellers. The market design implication is that marketplaces can benefit from allowing sellers to use rewards to build reputations and signal their high quality in the process.

**********

DESIGNING ONLINE MARKETPLACES:

TRUST AND REPUTATION MECHANISMS

Michael Luca

Working Paper 22616, http://www.nber.org/papers/w22616

ABSTRACT: Online marketplaces have proliferated over the past decade, creating new markets where none existed. By reducing transaction costs, online marketplaces facilitate transactions that otherwise would not have occurred and enable easier entry of small sellers. One central challenge faced by designers of online marketplaces is how to build enough trust to facilitate transactions between strangers. This paper provides an economist’s toolkit for designing online marketplaces, focusing on trust and reputation mechanisms.

Repugnance watch: Pokemon Go banned in Iran

Here's the BBC story, which also covers restrictions on the game elsewhere, for various reasons: Pokemon Go banned by Iranian authorities over 'security'

"The decision was taken by the High Council of Virtual Spaces, the official body overseeing online activity.
Iran follows a number of other countries in expressing its worries over security related to the game.
...
"Indonesia has banned police officers from playing the game while on duty, and a French player was arrested last month after straying on to a military base while trying to catch Pokemon.
A leading Saudi cleric said a fatwa (religious ruling) issued against an earlier Pokemon card game also applied to the new mixed-reality app.
The 16-year-old edict said the game contained "forbidden images" and violated an Islamic ban on gambling. But a fatwa's influence might not carry beyond that particular scholar's territory, and is not necessarily applicable to the whole country.
Earlier this week, authorities in New York state said they would ban some 3,000 registered sex offenders from playing Pokemon Go while they are on parole.
The ban is aimed at safeguarding the children who play the game."

Stable matching for university admissions in Vietnam?

Here's a proposal (in Vietnamese) to use a deferred acceptance algorithm to organize university admissions in Vietnam:

Kỳ thi THPT Quốc Gia 2016
Về việc áp dụng thuật toán DAA của Gale-Shapley trong xét tuyển – Đối Thoại Giáo Dục

Google translate renders the headline this way:
"National high school exams in 2016
On application of the algorithm of Gale-Shapley DAA in admissions - Dialogue Education"

Who Gets What and Why, in China

I'll be travelling to China today, to speak in Changsha and Lanzhou, as a guest of the Times Media Group, to talk about the Chinese edition of my book Who Gets What and Why.

Here's a news story...
诺奖得主来华：共享经济时代如何优化资源配置？
Nobel Laureate in China: how to optimize the sharing of economic resources?

Google translate has trouble with my name in Chinese:  here are some variants they produce:
Erwin · E · Ross (Alvin E. Roth)
Elvin Ross

Public schools in Indianapolis advertise for enrollment, in competition with private schools

There's an enrollment contest underway in Indianapolis, and a new law against cash bonuses for referrals.
The Indianapolis Business Journal has the story:
Competition for school kids heats up across Indy

"Most Indianapolis kids went back to class in early August. But across town, billboards, yard signs and mailers put out by schools are making a last-minute pitch to parents: Enroll your child here.

"Public schools—including traditional, district-run schools and charters—are employing ever-more sophisticated advertising and marketing campaigns. The goal is to meet enrollment targets by the time the official state count day rolls around. This year, a school’s attendance on Sept. 16 determines its funding levels for the fall semester.
...
"Carpe Diem Meridian charter school’s 2015 marketing campaign tactic—offering $100 gift cards to anyone who referred a student who enrolled—was later that year made illegal by the Indiana General Assembly.

"The law says that a “school may not offer or give, as an enrollment incentive, any item that has monetary value, including cash or a gift card that may be used at a retail store, grocery store, online store, or other commercial enterprise” to prospective students in exchange for enrolling or to anyone who makes referrals."

Unraveling of apprenticeships in Switzerland

The Neue Zurcher Zeitung has the story: Die heikle Jagd nach den besten Lehrlingen von Hansueli Schöchli
Die Lehrstellen in der Schweiz werden zum Teil «zu früh» vergeben. Absprachen zwischen den Lehrbetrieben wären ein Gegenmittel. Doch solche Absprachen scheitern oft.

Google translate: "The tricky hunt for the best apprentices--The apprenticeships in Switzerland are awarded partly "too early". Agreements between educational establishments would be an antidote. But such agreements often fail."

Decentralized College Admissions by Che and Koh

In the Journal of Political Economy:

Decentralized College Admissions

Yeon-Koo Che

Columbia University

Youngwoo Koh

Hanyang University

ONLINE: Aug 31, 2016

• Abstract
 
• Full Text
 
• Supplemental Material
 
• PDF

Abstract

• Go to

We study decentralized college admissions with uncertain student preferences. Colleges strategically admit students likely to be overlooked by competitors. Highly ranked students may receive fewer admissions or have a higher chance of receiving no admissions than those ranked below. When students’ attributes are multidimensional, colleges avoid head-on competition by placing excessive weight on school-specific attributes such as essays. Restricting the number of applications or wait-listing alleviates enrollment uncertainty, but the outcomes are inefficient and unfair. A centralized matching via Gale and Shapley’s deferred acceptance algorithm attains efficiency and fairness but may make some colleges worse off than under decentralized matching.

The Handbook of Experimental Economics, volume 2, edited by John Kagel and Al Roth (forthcoming Sept 27:)

The Handbook of Experimental Economics, Volume 2 Hardcover –  forthcoming, September 27, 2016
by John H. Kagel (Editor), Alvin E. Roth (Editor)

from Princeton University Press
Table of Contents [PDF] 


from Amazon

From the Back Cover

"This new volume of Kagel and Roth's indispensable handbook covers the latest dramatic developments that have led experimental economics into areas such as market design and neuroeconomics, and also offers fresh insights into more traditional areas. It is all here, and all told in a manner both informative and engaging."--Gary Bolton, University of Texas, Dallas
"Kagel and Roth have done it again. While the first volume of the Handbook showed how experimental economics had reached its maturity as a scientific method, this second volume shows just how wide its reach has become, and how deep these tools can take our understanding of economic theory and human behavior. This book will change the way the world views economics."--James Andreoni, University of California, San Diego
"The contributors provide insights that will be invaluable to anyone seeking a deeper understanding of the issues at hand. I know of no other book that covers the same breadth of material in the same way. People will use this as a reference book for many years to come."--Tim Salmon, Southern Methodist University
"A worthy successor to the first volume. This ambitious and well-written book will appeal to a broad economic audience."--Tom Wilkening, University of Melbourne
"I wish every economist and economics graduate student would read this book. Those who are considering running experiments should be forced to; this is a bible in how to run good experiments. Every chapter is amazingly comprehensive and has been written by a true expert in the field. But economists who would never dream about running an experiment can benefit from reading this just as much. The beauty of experiments is that they force theorists to think carefully about their theories."--Richard Thaler, Cornell University
"This Handbook surveys one of the most important developments in economics in the last decade, the flowering of experimental economics. Led by two of the leaders of current economic theory and experimental economics, an impressive group of researchers provides the reader with an excellent up-to-date overview of one of the most fascinating and promising areas of current economic research."--Ariel Rubinstein, Princeton University
"The Handbook is not only a contribution to experimental economics, it is a major contribution to social science. It successfully combines the rigor and clarity of economic analysis with a commitment to open-minded examination of data, and a refreshing willingness to question dogma. Every student of human choice and action will find this text useful."--Daniel Kahneman, The Woodrow Wilson School of Public and International Affairs, Princeton University
"Experimental economics comes of age with this volume. At last the dust begins to clear, and it becomes possible to confront theory with coherent and reliable laboratory data."--Ken Binmore, University College of London

Sally Satel, on how she was lucky twice, and others shouldn't have to be

Sally Satel, the tireless fighter to make kidney transplants more accessible, writes in two recent articles about her good luck in receiving organs from friends, and about how providing greater incentives to donors might work...

This one is in Slate:

A College Tuition Payment for Your Spare Kidney? 
A new bill proposes an alternative way to compensate people for their organ donation. We should try it.
(The URL is as informative as the headline: http://www.slate.com/articles/health_and_science/medical_examiner/2016/09/the_current_kidney_donation_system_is_failing_us.html )

And this one is in Statnews:
 Vouchers and incentives can increase kidney donations and save lives

Quién obtiene qué y por qué. Who gets what and why, in Spanish

Who gets what and why is coming out in Spanish (in October). The publisher is Antoni Bosch, the economist.

Quién obtiene qué y por qué

LA NUEVA ECONOMÍA DEL DISEÑO DE MERCADOS

Alvin E. Roth
2016 (octubre)

Surrogacy repugnance and judicial approval: a strange case from Wisconsin

A surrogacy contract often requires a judge's approval for the birth certificate, and such a case went radically bad in Wisconsin where paid surrogacy is legal, but nevertheless regarded as repugnant in some quarters:
These Two Dads Almost Lost Their Son In A Bizarre Surrogacy Case
Jay Timmons and Rick Olson thought they’d have no legal trouble using a surrogate to birth their son. Then a rogue judge in Wisconsin pulled them into an 11-month legal battle.

"Jay Timmons and Rick Olson, a married gay couple from Virginia, didn’t think they’d have any trouble becoming the legal parents of the baby boy who their surrogate, a Wisconsin woman, delivered for them last year.
They had gotten the frozen embryo that became their son as a gift from straight friends whose in vitro fertilization created more embryos than they could use. They had chosen a Wisconsin surrogate specifically because the state’s Supreme Court had upheld surrogacy, and other same-sex couples had had smooth sailing there. And by just about any measure, the two intended fathers were prime parent material: They both had good jobs, they had been together for 25 years, and they were already raising two daughters from previous surrogacies.
But their careful plans went awry the month before their son, Jacob, was born, when their effort to be named his legal parents landed before a conservative judge who saw surrogacy as a form of human trafficking. Over the next 11 months, the couple’s bizarre legal battle cost more than $400,000 and kept them in constant terror of losing their son.
...
"But the Wisconsin case is likely unprecedented, legal experts say, in that the surrogate, her husband, and the intended parents were all happy with their arrangement. Only the judge was not.
...
"Dane County Circuit Court Judge Jim Troupis, appointed by Gov. Scott Walker last year, opened his March opinion with the statement, “Human trafficking comes in many forms.” And although he went on to describe the two dads as a “spectacular set of parents’’ who would raise the child “in a nurturing environment with unmatched financial resources,’’ he made it clear that he was bothered by the fact that the couple had paid a woman to carry a baby who was not related to them.
“The fundamental fact remains that another couple has provided the child as a gift to the petitioners, and the child has no genetic relationship to the petitioners,’’ Troupis wrote. “In order to bring the child into world, the petitioners have paid a significant amount of money. Without those payments there would be no child.’’
...
"There is no federal law on the subject, and state laws vary enormously. California, for example, where Timmons and Olson hired the surrogates who delivered their two daughters, is the center of the nation’s surrogacy industry, thanks to a friendly state law.
But most states don’t have any surrogacy laws on the books. Some simply refuse to enforce surrogacy contracts. Others, including Virginia, don’t allow surrogacy unless at least one of the intended parents has a genetic connection to the baby. New York and Washington allow only unpaid, or “altruistic” surrogacy, and Michigan has criminal penalties for all types.
...
"Despite the legal limbo, because of the rise of in vitro fertilization — now responsible for nearly 2% of US births — and the legalization of same-sex marriage, demand is also rising for surrogates. And, partly to avoid legal snags, these women are generally “gestational surrogates,” meaning that they carry embryos that are not genetically related to them. According to the CDC, there were 3,432 gestational surrogates in 2013, up from 727 in 1999.
...
"Although the case was in Dane County, the liberal stronghold that contains Madison, Judge Troupis appointed as the child’s legal guardian Mark Knutson, a lawyer 70 miles away whose radio broadcast, The Word on The Law, aims to reconcile God’s word with the law. Knutson, in turn, brought in another lawyer from his firm, Erik Krueger, who had worked with Liberty Counsel, a group that defends public officials like Kim Davis, the Kentucky county clerk who refused to issue marriage licenses to same-sex couples.
...
"In November, Knutson filed a 45-page report to Judge Troupis, calling for more court oversight of surrogacy cases and arguing that rubber-stamping a gestational surrogacy contract made by two men with no genetic connection to the child would open the way to a dangerous expansion of the concept of parenthood.
Such surrogacy contracts, his report said, broker pregnancy, commodify children, and meet the needs of wealthy intended parents at the expense of the children involved.
...
"In his March decision, Judge Troupis seemed to rely on many of Knutson’s arguments. He terminated the surrogate’s maternal rights and gave the Virginia men only temporary custody, technically leaving Jacob an orphan.
...
"The Troupis decision left Timmons and Olson at a crossroads: They could continue to appeal in Wisconsin, or take a different route, pursuing an adoption in their home state of Virginia. While they weighed these options from their home in Virginia — while caring for Jacob and their young daughters — they had a lucky break: Judge Troupis resigned May 2, to try, unsuccessfully, for a seat on the Wisconsin Supreme Court.
Timmons and Olson had already moved to reopen and reconsider Judge Troupis’s ruling, but with the judge’s resignation, their case was transferred to yet another judge, Peter Anderson, who overturned Judge Troupis’s “faulty’’ opinion, which he criticized for using language that was “unduly harsh and kind of weird.’’
********

HT: Kim Krawiec

Ransom as a (not so) repugnant transaction

The United States is revising some policies regarding dealing with Americans held hostage, e.g. in the middle east.  The NY Times has the story:
In a Shift, U.S. Includes Families in Hostage Rescue Efforts
By ADAM GOLDMANSEPT. 11, 2016

It includes the following observation:
"And while the administration has continued its policy of not paying ransoms, it has now pledged not to criminally charge families if they decide to pay one."

A chat about the design of ad auctions with Gabriel Weintraub

Gabriel Weintraub has just moved to Stanford from Columbia. Here's a recent interview with him about bidding for online advertisements.
A Chat With AppNexus Chief Economist Gabriel Weintraub

"RTBlog: What is market design?

Weintraub: It’s an area of economics that uses tools from game theory, econometrics, and micro-economic theory to understand how marketplaces work. It looks at what the dynamics are, and advertising auction logic that affects incentives to achieve certain objectives. It looks at how to set up rules to make the auction more efficient.

If your goal is increasing a seller’s revenue, that’s a goal market design can address. Another goal is efficiency and making markets safe. And you want to monetize the inventory, and outcomes that are fair for both buyers and sellers. Market design is having a significant impact on how digital marketplaces are being run."

Repugnant language: some reflections on profanity

The Canadian magazine Maclean's has a very polite (but nontheless interesting) essay on profanity
Are we wearing out obscenities?
"Profanity sinks deep emotional roots in our brains. When words develop duelling meanings, the bad stuff almost always wins out.
...
"In short, if English should lose its surprisingly small profane vocabulary set through overusage, we would be forced to invent new obscenities. That would be no easy task, given the polished perfection of what biology, time and chance has already bequeathed us."

Has the internet "wrecked" college admissions?

That's what the headline writers at the Washington Monthly think:
How the Internet Wrecked College Admissions: Colleges are drowning in online applications, which is bad news for both schools and students.  by Anne Kim

Here are the opening paragraphs:
"Over the last decade, the internet has made it much easier for students to apply to college, especially thanks to services like the “Common App.” For the nearly 700 schools now part of the Common Application—the nation’s leading standardized online college application portal—students can browse by name, state, or region, by the type of institution (public or private), and by whether it’s co-ed or single-sex. Clicking on a college takes students to a brief profile of the school and then an invitation: “Ready to apply?”

And now that students can apply to more colleges with the click of a few buttons, they are doing exactly that. In 2013, according to the National Association of College Admissions Counselors (NACAC), 32 percent of college freshmen applied to seven or more colleges—up 10 percentage points from 2008. Almost all of this growth has been online. In the 2015–16 admissions cycle, over 920,000 students used the Common App, more than double the number in 2008–09."

Preliminary program for the January 2017 American Economic Association meetings in Chicago

The AEA program has largely taken shape: 2017 Annual Meeting

Knuth award to Noam Nisan

Mazel tov to Noam Nisan!

Hebrew University's Nisan Cited for Fundamental and Lasting Contributions to Theoretical Computer Science

New York, September 8, 2016 —The 2016 Donald E. Knuth Prize will be awarded to Noam Nisan of the Hebrew University of Jerusalem for fundamental and lasting contributions to theoretical computer science in areas including communication complexity, pseudorandom number generators, interactive proofs, and algorithmic game theory. The Knuth Prize is jointly bestowed by the ACM Special Interest Group on Algorithms and Computation Theory (SIGACT) and the IEEE Computer Society Technical Committee on the Mathematical Foundations of Computing (TCMF). It will be presented at the 57th Annual Symposium on Foundations of Computer Science (FOCS 2016) in New Brunswick, NJ, October 9–11.

Nisan’s work has had a fundamental impact on complexity theory, which examines which problems could conceivably be solved by a computer under limits on its resources, whether it is on its computation time, space used, amount of randomness or parallelism. One of the major ways in which computer scientists have explored the complexity limits is through the use of randomized algorithms. Nisan has made major contributions exploring the power of randomness in computations. His work designing pseudorandom number generators has offered many insights on whether, and in what settings, the use of randomization in efficient algorithms can be reduced.

Nisan has been a major player in Algorithmic Game Theory, and, through his 1999 paper with Amir Ronen, has laid the foundation of Algorithmic Mechanism Design. A mechanism is an algorithm or protocol that is explicitly designed so that rational participants, motivated purely by their self-interest, will achieve the designer's goals. This is of paramount importance in the age of the Internet, with many applications from auctions to network routing protocols. Nisan has designed some of the most effective mechanisms by providing the right incentives to the players. He has also shown that in a variety of environments there is a tradeoff between economic efficiency and algorithmic efficiency. Nisan is a co-editor of Algorithmic Game Theory, a fundamental text in the field.

He is also a leading authority in communication complexity, an area of computer science research that examines the amount of information that needs to be transferred between parties for computational problems. With Eyal Kushilevitz, Nisan co-authoredCommunication Complexity, an authoritative text in the field.

Nisan is professor of computer science and engineering at the Hebrew University of Jerusalem. He is also a graduate of Hebrew University, and earned his Ph.D. from the University of California, Berkeley. He received the 2012 Gödel Prize (with Elias Koutsoupias, Christos Papadimitriou, Amir Ronen, Tim Roughgarden and Éva Tardos), the 1990 ACM Doctoral Dissertation Award for his dissertation, “Using Hard Problems to Create Pseudorandom Generators,” and the 2004 Michael Bruno Memorial Award.

The Donald E. Knuth Prize is named in honor of Donald Knuth of Stanford University who has been called the “father of the analysis of algorithms.”

Airbnb consider market design changes to reduce discrimination

The NY Times has the story:
Airbnb Adopts Rules in Effort to Fight Discrimination by Its Hosts

"Airbnb, based in San Francisco, said that it would institute a new nondiscrimination policy that goes beyond what is outlined in several anti-discrimination laws and that it would ask all users to agree to a “community commitment” starting on Nov. 1. The commitment asks people to work with others who use the service, “regardless of race, religion, national origin, disability, sex, gender identity, sexual orientation or age.”

In addition, the company plans to experiment with reducing the prominence of user photos, which have helped signal race and gender. Airbnb said it would also accelerate the use of instant bookings, which lets renters book places immediately without host approval."
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There is a strong market design subtext to this story: Peter Coles, Airbnb's (new) chief economist, used to work at Harvard Business School, where some of his former colleagues conducted an experiment that helped focus on the possible discrimination problem.
Here's the current version of that paper:

Racial Discrimination in the Sharing Economy:Evidence from a Field Experiment
 Benjamin Edelman, Michael Luca, and Dan Svirsky
 September 4, 2016

 Abstract
Online marketplaces increasingly choose to reduce the anonymity of buyers and sellers in order to facilitate trust. We demonstrate that this common market design choice results in an important unintended consequence: racial discrimination. In a field experiment on Airbnb, we find that requests from guests with distinctively African-American names are roughly 16% less likely to be accepted than identical guests with distinctively White names. The difference persists whether the host is African-American or White, male or female. The difference also persists whether the host shares the property with the guest or not, and whether the property is cheap or expensive. We validate our findings through observational data on hosts’ recent experiences with African-American guests, finding host behavior consistent with some, though not all, hosts discriminating. Finally, we find that discrimination is costly for hosts who indulge in it: hosts who reject  guests are able to find a replacement guest only 35% of the time. On the whole, our analysis suggests a need for caution: while information can facilitate transactions, it also facilitates discrimination.

The NBER market design lectures from the 2016 Summer Institute (Videos)

This summer the "methods lectures" at the NBER summer institute were on market design. Videos of the five lectures (each about 45 minutes long) are here.

Summer Institute 2016 Methods Lectures

July 26, 2015
Lecturers: Al Roth, Parag Pathak, Atila Abdulkadiroglu, Nikhil Agarwal, Itai Ashlagi

Reading List

Al Roth
Game Theory and Market Design

You can download this video from here

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Parag Pathak
Design of Matching Markets

You can download this video from here

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Atila Abdulkadiroglu
Research Design meets Market Design

You can download this video from here

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Nikhil Agarwal
Revealed Preference Analysis in Matching Markets

You can download this video from here

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Itai Ashlagi
Matching Dynamics and Computation

You can download this video from here 


And you can see a short introductory video in which I am interviewed about market design here (and for the time being on the NBER home page, http://nber.org/). 

The California Growers Association, and Proposition 64 (to legalize recreational use of marijuana)

Humboldt County is a great place to see tall trees, which is a relaxing way to spend some time.

But there are other things growing high up California's north coast, and the California Growers Association is divided over whether any further changes in marijuana licensing laws would be a good thing or not. The Humboldt Independent has the story:
Growers Association Still Divided Over Proposition 64, by Keith Easthouse

"With three months to go before voters decide the matter, the California Growers Associations remains divided over the statewide legalization initiative known as the Adult Use of Marijuana Act.

“Thirty-one percent say yes, 31 percent say no and 38 percent are undecided,” Hezekiah Allen, CGA’s executive director, said last week in reference to the group’s latest online survey of its membership.
...
"While CGA is a statewide organization, the bulk of its roughly 700 members — who include cultivators, manufacturers and retailers — come from three regions: The North Coast, with 161 members; the Sierra Foothills, with 145 members; and the Bay Area, with 145 members.

“Our membership [includes] the smaller, independently owned, value-added operations. We want a marketplace for those types of businesses,” Allen explained in an interview earlier this year.

The fact that there are provisions in Prop. 64 that are seen as overly friendly to big business interests and not friendly enough to small farmers lies at the heart of the doubts some members have about the measure."
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See my earlier post

The California marijuana market: the hippies now have to compete with the agribusinesses

Budapest in three photos

The parliament building, the Holocaust memorial by the river, and a shop with excellent, diverse flavors of ice cream...

MIÉRT GYERE EL? von Neumann lecture in Budapest on Who Gets What and Why, Sept 6

MIÉRT GYERE EL?
"We cordially invite you to the 2016 John von Neumann Award Ceremony and the public lecture held by the awardee on the 6th September. The title of the lecture will be "Who Gets What and Why: The New Economics of Matchmaking and Market Design”. 2012 Nobel laureate Professor Roth is going to talk about the matching markets hidden around us, from kindergarten choice through kidney transplantations to college football, and about how to make them work.

The lecture is organized by Rajk László College for Advanced Studies with the contribution of Institute of Economics of the Hungarian Academy of Sciences (KTI). The lecture will be held in English."
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Here's a news story announcing the event
Alvin E. Roth kapja az idei Neumann János-díjat
Google translate: Alvin E. Roth will receive this year's John Von Neumann Prize

The students at Rajk László College, who choose the recipient of this annual award, have done a good job in the past: https://en.wikipedia.org/wiki/John_von_Neumann_Award

School choice discussion in Indianapolis

The Indy Star has the story:
Will Indy adopt central enrollment system for schools?

"A group is developing a one-stop enrollment system for Indianapolis schools but will the city’s largest education provider take part?

Indianapolis Public Schools leaders are weighing whether to join Enroll Indy, a nonprofit with plans to launch a unified enrollment process for IPS schools and charter schools within the district’s boundaries by next year.

The goal: Help parents find a school for their children in a city with growing options that feature charter schools, innovation network schools, magnet programs and more.

So far, IPS hasn’t made any commitments, though moving toward such a system is among the district’s priorities, IPS Superintendent Lewis Ferebee said.

“Whether Enroll Indy is the best fit for IPS to go down that path is to be determined,” Ferebee told IndyStar. “The concept itself could definitely benefit our families.”

Advocates for a central enrollment system say the way parents now shop for schools is disorganized. To find the best fit, parents must juggle different application deadlines and know what programs are out there, a daunting task with the city now playing host to more than 40 charter schools.

Wealthier families can find the process easier to navigate, placing lower-income families at a disadvantage, organizers say.

“If we’re going to say we have choice,” said Caitlin Hannon, Enroll Indy’s founder, “everybody should have equitable access to that choice.”

Hannon, a former IPS School Board member, said the group is hoping to launch its first application process next fall for the 2018-19 school year. But first it needs buy-in from the city’s schools, and Hannon started making her pitch to IPS this month.

A 2015 report by the Institute for Innovation in Public School Choice found that the city’s schools are in “intense competition to enroll students.”

“There is no incentive for IPS, for example, to tell parents about charter schools. Or for Ball State University to ensure families understand the IPS magnet school application,” according to the report. “In both cases, doing so would not be in their best self-interest. For families, though the distinction between authorizers is less important. Parents are looking for the best school for their child, regardless of who runs it. For them, not having the information in one easy-to-access place doesn’t make sense.”

Families would apply through Enroll Indy to any participating school, where they’d rank their school preferences and be matched with a program.

Hannon said families would be asked their priorities, such as location and where siblings attend. Students are then matched to the school “they want the most that they can get into, based on those priorities,” Hannon said.

“I like to explain it as all schools lotteries happening at the same moment…,” she said.

An analysis of a similar system run in Denver Public Schools found not enough seats existed in high-performing schools to serve demand. That meant students often were assigned to lower-performing schools than initially requested.

But the system would come with perks, Hannon said. Parents would no longer have to hold spots for their children at multiple schools, making it easier for administrators to plan staffing needs...."

Market designers in Silicon Valley and beyond

Here's a story that mentions a handful number of economists doing market design inside tech firms:
 Goodbye, Ivory Tower. Hello, Silicon Valley Candy Store

It begins with this picture of Peter Coles (Airbnb's chief economist), whose quote about candy stores is echoed in the headline.

And here's a quote from Hal Varian:
"Understanding how digital markets work is getting a lot of attention now, said Hal Varian, Google’s chief economist. But, he said, “I thought it was fascinating years ago.”

Sotheby's to Offer John F. Nash, Jr.'s 1994 Nobel Memorial Prize in Economic Sciences

Sotheby's to Offer John F. Nash, Jr.'s 1994 Nobel Memorial Prize in Economic Sciences

"For John F. Nash, the accolade of the Nobel Prize was a transformative event, particularly in the context of his struggles with mental illness. During an interview at a 2004 meeting of Nobel Laureates in Economic Sciences, Nash acknowledged that the Nobel Prize “had a tremendous impact on my life, more than on the life of most Prize winners because I was in an unusual situation. I was unemployed at the time...And so I was in a position to be very much influenced by the recognition of my earlier work...I had become widely known, but in a sense it wasn’t officially recognized. I was quoted very frequently in the literature of economics and mathematics, but it’s quite different to get official recognition”.

With its gold medal in its original red morocco case, accompanying calligraphic diploma with an original watercolor drawing by Bengt Landin, the original box and attaché case for the diploma, and official letters from the Nobel Foundation and the Royal Swedish Academy of Sciences, John F. Nash, Jr.'s 1994 Nobel Memorial Prize in Economic Sciences is one of the most complete documentations of the Nobel Prize to ever be offered for auction (estimate $2.5/4 million)."

A perfect match--documentary on the medical match by Dr Trisha Pasricha

Here's a description of a forthcoming documentary on the National Resident Matching Program (NRMP), the resident match : A Perfect Match. And here's a piece on the doctor-filmmaker behind it, Dr. Trisha Pasricha, who graduated from Vanderbilt's medical school and went through the 2016 match: The Envelope, Please.

Apparently the film is scheduled for release around the time of the 2017 match, so look for it in March (Match Day will be March 17, 2017).

Reinhard Selten (1930-2016)

Reinhard Selten, a pioneer in both game theory and experimental economics, passed away last week. Rosemarie Nagel and Eyal Winter wrote this morning with the news. Here is an obituary from the Frankfurter Allgemeine
Trauer um berühmten Ökonom
Wirtschaftsnobelpreisträger Reinhard Selten gestorben
Der Mathematiker und Ökonom Reinhard Selten ist tot, wie die F.A.Z. aus seinem Umfeld erfuhr. Er war der bisher einzige Deutsche, der jemals den Ökonomie-Nobelpreis erhalten hat. 
Google translates the headline this way:
"Mourning famous economist
died Nobel laureate Reinhard Selten
The mathematician and economist Reinhard Selten is dead, as the FAZ learned from his environment. He was so far the only German who has ever received the Nobel Prize in economics."

That obit comes with this undated  photo:

Here's a picture of the two of us that Axel Ockenfels took in Cologne in 2006

Reinhard Selten and Al Roth

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Update: further obituaries
Reinhard Selten, German Nobel economist, dies aged 85

Reinhard Selten, Game Theorist Who Won Nobel Prize, Dies at 85
"Reinhard Selten was born on Oct. 5, 1930, in Breslau, a German city before World War II and now called Wroclaw in present-day Poland. His father ran a magazine-lending business, which the Nazi regime forced him to sell because he was Jewish.
"Selten and his mother were Protestant, yet his father’s Jewish roots forced Selten to leave school at 14 and he was refused entry to a trade. They left Breslau and became refugees in the German states of Saxony and Hesse as well as in Austria, where he worked as a farm hand after the war. His life in a village in Hesse required walking 3 ½ hours to and from school, during which he solved mathematical problems, he said in his biography for the Nobel Foundation.

“My situation as a member of an officially despised minority forced me to pay close attention to political matters very early in my life,” he said. “I had to learn to trust my own judgment rather than official propaganda or public opinion. This was a strong influence on my intellectual development.”
...
"Selten and his wife, the former Elisabeth Langreiner, were proficient in Esperanto, an invented language devised in the 19th century to assist international communication."


Reinhard Selten, Deutschlands einziger Ökonomie-Nobelpreisträger ist tot
Google t: Reinhard Selten, Germany's only Nobel laureate in economics is dead
"Reinhard Selten was like many older men with disheveled white hair and a little too big, held by suspenders suit. He chose his words carefully. But his eyes lit up when he talked about current projects, for example, a new experiment on decision theory. Even many years after his retirement, he devoted himself every day for two to three hours of research. Therefore he remained scientific coordinator and founder of the Laboratory of Experimental Economics at the University of Bonn.
...
" Finally ... he came to economic laboratory experiments. "I was familiar through my psychology studies with experiments that approach made sense to me." His credo: "Who wants to know what is in the real world going on, must make empirical and experimental work, the reality can be devised at the desk no."
"Not for nothing, the economist is therefore regarded as a pioneer of experimental economics. After receiving his doctorate in Frankfurt and lectureships in Berlin and Bielefeld was rare in 1984 to Bonn, where he founded the first European laboratory for economic experiments."


And, in the NY Times:
Reinhard Selten, Whose Strides in Game Theory Led to a Nobel, Dies at 85
By Sam Roberts

"Alvin E. Roth, another Nobel laureate in economics who teaches at Stanford University, wrote in 1999 that game theory and experimental economics were two of the most important developments in the field in the second half of the 20th century.
“Reinhard Selten is one of the pioneers in both of these endeavors, and he has been a leader in each of them throughout his career,” Professor Roth wrote. “This makes him unique: No one else in the world has made such important or such sustained contributions to both fields.”

More recently, from Andreas Ortmann in Australia:
In Memoriam Reinhard Selten (1930 – 2016), September 2, 2016 by Andreas Ortmann

India considers a Surrogacy (Regulation) Bill, 2016 (banning commercial surrogacy, and restricting surrogacy to traditional couples)

Here's the government press release:
Cabinet approves introduction of the "Surrogacy (Regulation) Bill, 2016" 

"The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for introduction of the "Surrogacy (Regulation) Bill, 2016".

The Bill will regulate surrogacy in India by establishing National Surrogacy Board at the central level and State Surrogacy Boards and Appropriate Authorities in the State and Union Territories. The legislation will ensure effective regulation of surrogacy, prohibit commercial surrogacy and allow ethical surrogacy to the needy infertile couples. "

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Needless to say, there is lots of press reaction, on both sides, for multiple reasons. A sampling of headlines pro and con, with links:

The surrogacy bill is dangerous overreach

Ideological bias has trumped economic and ethical logic

Draft surrogacy bill violates fundamental right of people to choose modes of parenthood

Overseas Indians, foreigners, unmarried couples, single parents, live-in partners and gay couples are barred from commissioning the services of surrogate mothers.

Why the Surrogacy Bill is necessary

No more rent-a-womb: Why India needs to regulate surrogacy

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Update: and here's the bill: Surrogacy (Regulation) Bill, 2016