The market(s) for law grads

A new report from the NALP surveys law grads who graduated in 2010 about their employment status as of February 15, 2011, under the headline Class of 2010 Graduates Faced Worst Job Market Since Mid-1990s.

"The percentage of private practice jobs with large law firms of 501 attorneys or more fell more than five percentage points in a single year to 20.5% for the Class of 2010 compared to 25.6% for the Class of 2009. On the other end of the scale, jobs with firms of two to ten lawyers represented 39.1% of all private practice jobs taken by members of this class, a rise of seven and a half percentage points in two years, up from 31.6% for the Class of 2008. And, the number of graduates reporting that they are working as solo practitioners has similarly soared over two years from 3.3% of all private practice jobs for the Class of 2008 to 5.7% for the Class of 2010. Taken together, jobs at firms of 50 or fewer lawyers accounted for 59% of all private practice jobs."
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The NY Times reports on the growth of non-partner tracks in large law firms:
At Well-Paying Law Firms, a Low-Paid Corner,
and on some lower paid American jobs that compete with legal work that has been sent to overseas firms--
Legal Outsourcing Firms Creating Jobs for American Lawyers

School choice in Israel

Ran Shorrer writes:
"Israel is going to start a school choice pilot, a fact that economists (well, basically Victor Lavy, from Hebrew-U) support and others oppose.   

Google translated version (not perfect but relatively clear):
http://translate.google.com/translate?js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&sl=iw&tl=en&u=http%3A%2F%2Fwww.calcalist.co.il%2Flocal%2Farticles%2F0%2C7340%2CL-3518939%2C00.html%3FdcRef%3Dynet

Original
http://www.calcalist.co.il/local/articles/0,7340,L-3518939,00.html?dcRef=ynet

2nd LeeX International Conference on Theoretical and Experimental Macroeconomics

PROGRAM                        

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Friday, June 10
9:00-9:15                Opening Remarks, John Duffy
9:15-10:00              "The Economics of Money Illusion"
                              Keynote Speaker, Jean-Robert Tyrann (Vienna University)
  
10:00-10:45            "Sticking to Prices? - Behavioral Differences in Price Setting"
                               Emma Svensson (Lund University)

10:45-11:15          Coffeebreak

11:15-12:00            "Gift Exchange versus Monetary Exchange: Experimental Evidence"
                              John Duffy (Pittsburgh University)

12:00-12:45            "The Coordination Value of Monetary Exchange: Experimental Evidence"
                              Marco Casari (University of Bologna)
  
12:45-14:30              Lunch

14:30-15:15           "Technology, Wage Dispersion and Inflation"
                             Shoujian Zhang (Vienna University)

15:15-16:00            "Explaining Rigidities in the Housing Market: Is Loss Aversion at a Loss?"        
                              Florent Buisson (University Paris 1 Pantheon-Sorbonne)

16:00-16:30            Coffeebreak

16:30-17:15           "Self-control Preferences and Fiscal Policies: A Quantitative Analysis in a Life
                                    Cycle Model"      
                             Cagri Kumru (Australian National University)   

17:15-18:00            "Market-Based Corrective Actions: An Experimental Investigation"              
                             Oleg Korenok (Virginia Commonwealth University)
  
20.30                          Dinner         

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Saturday, June 12
9:00-9:45                "Bubbles and Monetary Policy"
                               Keynote Speaker, Jordi Gali (Universitat Pompeau Fabra)

9:45-10:30               "Frictions, Persistence, and Central Bank Policy in an Experimental Dynamic Stochastic

General Equilibrium Economy"

                               Charles Noussair (Tilburg University)
  
10:30 -11:00            Coffeebreak

11:00-11:45           "Heterogeneous Expectations in Monetary DSGE Models"       
                             Domenico Massaro (Univeristy of Amsterdam)

11:45-12:30            "Inflation Expectations and Behavior: Do Survey Respondents Act on their Beliefs?"
                              Olivier Armantier (NY Federal Reserve Bank)

12:30-14:30               Lunch

14:30-15:15            "Inflation Expectations and Monetary Policy Design: Evidence from the Laboratory"        
                              Damjan Pfajfar (Tilburgh University)      

15:15-16:00            "The New Keynesian Phillips Curve with Myopic Agents"
                              Michael Ross (Bochum University)

16:00-16:30             Coffeebreak

16:30-17:15           "Information acquisition in a speculative attack: Theory and Experiments"
                            Isabel Trevino (NY-University)

17:15-18:00           "Are Sunspots Learnable in a General Equilibrium Model"
                            Jasmina Arifovic (Simon Fraser University)
  
  

---

Organizers: John Duffy, Frank Heinemann, and Rosemarie Nagel

Misc. repugnant transactions: marijuana, camel meat, and concealed carry on campus

The Maastricht ban on selling marijuana to foreign tourists is spreading to the rest of Holland:
Dutch govt to ban tourists from cannabis shops (HT Bettina Klaus)
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A little-noticed move by American Express to ban the purchase of medical marijuana with its credit cards has reignited a longstanding debate: How much can a credit card company control what you buy?
        To the surprise of consumers, major credit card companies are making decisions about what they can and can't buy with their credit cards. What's off-limits? Legal purchases like gambling chips and donations to at least one controversial non-profit organization; in some cases, buying pornography is also restricted, and so, increasingly, is medical marijuana. Last month, shortly before Delaware became the 16th state to legalize medical marijuana, American Express told merchants that its cards could not be used to buy it.
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Good news for camel meat lovers: The Knesset's Defense and Foreign Affairs Committee annulled various outdated regulations Monday, including a longtime ban on the sale of camel meat. (HT Assaf Romm)
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And those of you looking forward to concealed carry on campus will have to wait a bit longer, even in the Lone Star State:
State legislators in Texas could not meet Monday's end-of-session deadline to pass a bill that would have allowed people to carry concealed weapons on campus -- meaning a win for higher education leaders, who almost uniformly opposed the legislation.

Harvey Mansfield on game theory

My Harvard colleague Harvey Mansfield writing in the WSJ about "Sociology and Other 'Meathead' Majors"  has this to say about economics and game theory:

"Others try to imitate the sciences and call themselves "social scientists." The best imitators of scientists are the economists. Among social scientists they rank highest in rigor, which means in mathematics. They also rank highest in boastful pretension, and you can lose more money listening to them than by trying to read books in sociology. Just as Gender Studies taints the whole university with its sexless fantasies, so economists infect their neighbors with the imitation science they peddle. (Game theorists, I'm talking about you.)"
**********

In a weak moment, I sent him the following email:

Dear Professor Mansfield: I read with interest your recent WSJ article.  It looks like it was fun to write.

I noticed that you particularly called out game theorists (of which I am one).

Since you take a long view, I couldn’t help but wonder if your appreciation of game theory was in any way influenced by the most recent developments, of the past two decades, in which game theory has become (as the sociologists would say) “performative,” through market design.

In case they might be of interest, below are two links, the first to a non-technical paper written for economists, and the second to an easier to read Boston Globe article covering some of the same ground.  (My view is that we game theorists are better grounded than we used to be, or than might have been apparent even twenty years ago…)

Here’s the survey article:

Roth, Alvin E. "What have we learned from market design?" Hahn Lecture, Economic Journal, 118 (March), 2008, 285-310.

And here’s the Globe story, from April 3, 2011:

The Matchmaker: The Harvard economist who stopped just studying the world and began trying to fix it

Cheers,

Al Roth
**********
this led to the following reply (and permission to publish it here)

Dear Professor Roth,

Thank you for introducing yourself.  

One sign of being a science is having to write non-scientific communications of it.  My forays in the WSJ etc are merely shorter than the longer stuff.

I suppose game theory from the first, and perhaps like all science these days, has practice implied in the theoretical statement.  But the goal is ambiguous in game theory.  Is it for the purpose of conflict resolution, as with T. Schelling, or is it to teach people to be more strategic, less moralistic, in their daily living?  Perhaps both, the latter as means to the former. But then you have the goal of a peacenik or a Buddhist and the manners of a calculator or a crook.

I hope we meet sometime,

Yours,  Harvey Mansfield

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I replied that one goal of market design is to produce institutions that make it easier for people to achieve their goals straightforwardly...

Unpaid Internships

Bookforum has a thoughtful review by Roger Hodge of
Intern Nation: How to Earn Nothing and Learn Little in the Brave New Economy by Ross Perlin

"According to Ross Perlin, the author of Intern Nation, the rise of this relatively new employment category, which is taken for granted by everyone from the antiunion governor of Wisconsin to the managers of Barack Obama’s reelection campaign, is a clear indication of the decline of labor rights in the United States.
...
"The College Employment Research Institute estimates that 75 percent of college students do at least one internship before graduation. ...nowadays, interns are everywhere, in publishing, merchandising, insurance, finance, consulting, law, engineering, and the defense industry. It seems that most large corporations pay their interns, but the number of unpaid jobs in the economy is booming. ...Based on his reporting, Perlin estimates that one to two million Americans work as interns every year, though he suspects that this number might be on the low end. Most interns are students or recent graduates, and large numbers, perhaps 50 percent overall, work for free. Worse, many actually pay tuition for the privilege of working, as a result of the common misconception on the part of both universities and employers that the bestowal of academic credit somehow nullifies the strictures of the Fair Labor Standards Act (FLSA) of 1938, which prohibits uncompensated labor except under carefully defined circumstances. Academic programs, both undergraduate and graduate, have increasingly adopted the internship as a degree requirement. Such requirements foster an economy of scarcity among the most prestigious internship programs... Highly coveted internships at places like Vogue magazine have recently been auctioned off for as much as $42,500; Perlin notes the irony that this obscene sum was raised for the benefit of the Robert F. Kennedy Center for Justice and Human Rights. Apparently, no one was troubled by the contradiction.
...
"Unpaid internships function as a class filter, ensuring that the children of the affluent and well connected are overwhelmingly represented in our elite cultural institutions. In addition to politics and journalism, the internship model predominates in the art world, book publishing, Hollywood, television, the music business, and many other industries that were traditionally prolabor. Increasingly, even public school teachers, who do not enjoy particularly high wages or status in our society, work as “student teachers” before gaining permanent positions. The basic issue, which is well articulated by Perlin, is that offering or being compelled to work for free is a paradigmatic example of an unfair labor practice; it creates a toxic race to the bottom as ever more desperate workers compete with one another to drive wages down. The internship economy demonstrates that wages, like interest rates, are capable of dropping to less than zero.

"Perlin recognizes that illegal, unpaid internships can lead to paying jobs. But to respond, as I might have before reading this vigorous and persuasive book, that working without pay for a few months can be an excellent investment is to miss the point. Although I no doubt made an economically rational decision many years ago to abandon my doctoral dissertation on Spinoza for an unpaid magazine internship, it would be far better if employment laws were strictly enforced and that valuable on-the-job training were available to those who don’t have a fellowship stipend or some other means of support. The fact that many individuals can point to significant career benefits from their investments in unpaid labor does not touch the larger argument from inequality."

Jack Kevorkian, 1928-2011

I've written before about assisted suicide as a repugnant transaction. Some of the history of the debate in the United States is captured in the life of Dr. Jack Kevorkian, sometimes nicknamed "Dr.Death," who died on Friday.

Dr. Jack Kevorkian Dies at 83; A Doctor Who Helped End Lives

"Dr. Jack Kevorkian, the medical pathologist who willfully helped dozens of terminally ill people end their lives, becoming the central figure in a national drama surrounding assisted suicide, died on Friday in Royal Oak., Mich. He was 83."
...
"In arguing for the right of the terminally ill to choose how they die, Dr. Kevorkian challenged social taboos about disease and dying while defying prosecutors and the courts. He spent eight years in prison after being convicted of second-degree murder in the death of the last of about 130 ailing patients whose lives he had helped end, beginning in 1990."
...
"His critics were as impassioned as his supporters, but all generally agreed that his stubborn and often intemperate advocacy of assisted suicide helped spur the growth of hospice care in the United States and made many doctors more sympathetic to those in severe pain and more willing to prescribe medication to relieve it.

"In Oregon, where a schoolteacher had become Dr. Kevorkian’s first assisted suicide patient, state lawmakers in 1997 approved a statute making it legal for doctors to prescribe lethal medications to help terminally ill patients end their lives. In 2006 the United States Supreme Court upheld a lower court ruling that found that Oregon’s Death With Dignity Act protected assisted suicide as a legitimate medical practice."
...
"In 1984, prompted by the growing number of executions in the United States, Dr. Kevorkian revisited his idea of giving death row inmates a choice. He was invited to brief members of the California Legislature on a bill that would enable prisoners to donate their organs and die by anesthesia instead of poison gas or the electric chair.

"The experience was a turning point. Energized by the attention of lawmakers and the news media, he became involved in the growing national debate on dying with dignity. In 1987 he visited the Netherlands, where he studied techniques that allowed Dutch physicians to assist in the suicides of terminally ill patients without interference from the legal authorities.

"A year later, he returned to Michigan and began advertising in Detroit-area newspapers for a new medical practice in what he called “bioethics and obiatry,” which would offer patients and their families “death counseling.” He made reporters aware of his intentions, explaining that he did not charge for his services and bore all the expenses of euthanasia himself.
...
"He also talked about the “doctrine” he had developed to achieve two goals: ensuring the patient’s comfort and protecting himself against criminal conviction. He required patients to express clearly a wish to die. Family physicians and mental health professionals were consulted. Patients were given at least a month to consider their decision and possibly change their minds. Dr. Kevorkian videotaped interviews with patients, their families and their friends, and he videotaped the suicides, which he called medicides.

"By his account, he assisted in some 130 suicides over the next eight years. Patients from across the country traveled to the Detroit region to seek his help. Sometimes the procedure was done in homes, cars and campgrounds.

"Prosecutors, jurists, the State Legislature, the Michigan health authorities and Gov. John Engler seemed helpless to stop him, though they spent years trying. In 1991 a state judge, Alice Gilbert, issued a permanent injunction barring Dr. Kevorkian from using his suicide machine. The same year, the state suspended his license to practice medicine. In 1993, Michigan approved a statute outlawing assisted suicide. The statute was declared unlawful by a state judge and the state Court of Appeals, but in 1994 the Michigan Supreme Court ruled that assisting in a suicide, while not specifically prohibited by statute, was a common-law felony and that there was no protected right to suicide assistance under the state Constitution.

"From May 1994 to June 1997, Dr. Kevorkian stood trial four times in the deaths of six patients. With the help of his young and flamboyant defense lawyer, Mr. Fieger, three of those trials ended in acquittals, and the fourth was declared a mistrial.

"Mr. Fieger based his winning defense on the compassion and mercy that he said Dr. Kevorkian had shown his patients. Prosecutors felt differently. “He’s basically thumbed his nose at law enforcement, in part because he feels he has public support,” Richard Thompson, the prosecutor in Oakland County, Mich., told Time magazine in 1993.

"But on March 26, 1999, after a trial that lasted less than two days, a Michigan jury found Dr. Kevorkian guilty of second-degree murder. That trial came six months after Dr. Kevorkian had videotaped himself injecting Thomas Youk, a patient suffering from amyotrophic lateral sclerosis (Lou Gehrig’s disease), with the lethal drugs that caused Mr. Youk’s death on Sept. 17, 1998."
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Subsequent stories make clear that Dr. Kevorkian was a difficult ally of the 'death with dignity' movement that has mobilized e.g. for the Oregon laws on assisted suicide: A Polarizing Figure in End-of-Life Debates

ec11: 12th ACM conference on electronic commerce, June 5-9

Here is the program for the Electronic Commerce conference, June 5-9 in San Jose.
Lots of econ, market design, and game theory.

And here is the schedule of tutorials, including

Monday, June 6, 2011, Half-Day Tutorial:, 8:30 - 11:20 AM
T3: Matching and Market Design,
Tutor: Itai Ashlaghi (MIT), Alvin Roth (Harvard University) and Fuhito Kojima (Stanford)

Further followup on school choice in San Francisco

My Thursday post, Followup on school choice in San Francisco, has generated some followup on its own, in the form of an audio interview yesterday of School Board member Rachel Norton by Stan Goldberg who follows the SF school system under the name Senior Dad.  He summarizes the interview as "Straight answers from Commissioner Norton “because people have a right to know”."

The issue is whether the algorithm adopted by the board last year was in fact implemented correctly by the district staff. It's an important question because the correctly implemented algorithm would be strategy proof, and if parents had confidence in this it would vastly simplify the school choice system from parents' point of view.

Here is my very incomplete and possibly imperfect transcript to give the flavor of the last 5 minutes of the interview (starting just after minute 39) in which Stan Goldberg (SG) raises this issue, and Rachel Norton (RN) replies. It's worth listening to.

SG “The school district was supposed to release the algorithm they were assigning students on, and so far they have not released that algorithm.”

RN “you’ve been reading Al Roth’s blog” ...“I’ve advocated for that, and will continue to advocate for that. I don’t think the staff right now wants to do that. [laughter] But short of 5 votes, 4 votes, they don’t have to.

…

SG ‘why should the public trust the school district?  “I’ve had the deputy Superintendent say ‘you guys shouldn’t trust us, we haven’t been reliable’. He said that; I believed him.”

RN “I don’t know what to tell you Sam, I think we should release the algorithm, and I’ve said that to staff, I’ve said that to the Superintendent”…short of 3 other board members joining with me and demanding that it be released the superintendent can do what he thinks is best,  unless he’s ordered by the board to do something else…”

SG “not releasing the algorithm makes everybody think something funny is going on…”

RN” well, not everyone…”

Privacy and Economics

It appears that "privacy and economics" may be an emerging topic in computer science, to judge from a postdoc mentioned on a cs blog I follow:

Differential Privacy Postdoc at UPenn

"We are building a differential privacy group at UPenn! Below is the announcement for a postdoc position in the theory and practice of differential privacy. If you are a theorist who wants to actually put your contributions into practice as well, please apply.

"There will be another announcement soon for another pure-theory postdoc position in the exciting new area of "privacy and economics". Stay tuned, and contact me if you are interested."

Followup on school choice in San Francisco

My previous post on how school choice is faring in San Francisco was called  School choice in San Francisco: a promise of transparency.  That promise still hasn't been fulfilled.

The idea was that, after the adoption by the school board of a New school choice system in San Francisco, SFUSD decided to implement the new, strategy-proof  "assignment with transfers" choice system itself (San Francisco school choice goes in-house).

School Board member Rachel Norton wrote in a November 9, 2010 blog post that
"Staff did pledge to make the documentation of the algorithm requirements and process flows public by February; I will continue to push to make the assignment algorithm itself open source."

While SFUSD has prepared a number of documents since then, none of them seem to contain a description of the SF school choice algorithm as actually implemented by the staff. All I can find are descriptions of the priorities used for tie-breaking if more children than can be accommodated by a school would otherwise have been assigned there, but no description of the process by which they would have been assigned before tie breaking has to be invoked.

The latest document of that sort, via Rachel Norton's June 1 blog post, is here: Board of Education Policy.
On page 7, under the heading "Method of Allocating Seats," the document states "The SFUSD will replace the diversity index lottery system with an assignment with transfers algorithm that uses school requests from families and the preferences outlined in this student assignment policy."
However the document doesn't describe the assignment with transfers algorithm at all, just the tie breaking priorities.

So...I'm still in the dark about whether SFUSD has actually implemented the choice system the Board adopted, and I bet SF parents and board members are too.
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Read more »

Congestion in online shopping

Too many choices? Subscribe to a shopping service. The NY Times reports:
Sites That Send Shoppers What They Might Like

"JewelMint is one of a new breed of e-commerce sites — which also include Send the Trend, ShoeDazzle, JustFabulous, Sole Society and the upcoming StyleMint — combining old-fashioned and new-fangled methods for luring customers. They present users with a limited selection of jewelry, shoes and accessories by coupling software algorithms that determine personal style with strategies culled from home shopping TV channels and CD-of-the-month clubs.
The sites are the latest example of retailers inventing new ways to shop online. The recent flurry of innovation in e-commerce has also produced private sale sites like Gilt and daily deal sites like Groupon. Like those, these shopping clubs aim to filter the seemingly infinite options online and show a small selection, catered to an individual’s taste.
JewelMint, Send the Trend and ShoeDazzle follow a similar recipe: a fashion celebrity designs or picks the styles (or just attaches his or her name to the project). Shoppers take a style quiz, confiding their go-to nail polish shades and whether they most covet the wardrobe of Nicole Richie or Reese Witherspoon. Each month, the site selects a handful of items and the shopper buys one for a set fee, skips the month, or forgets about it and gets charged that month’s fee, which can be applied to purchases over the next year.
“When you type in anything to search on the Internet, it’s almost terrifying the tidal wave of information you get back,” said Kate Bosworth, the actress who is the celebrity face of JewelMint and one of its designers. “The idea of harnessing search for different, sought-after things on the Internet is really the new frontier.”

Reverse scholarships reversed at KAIST

A recent article concerning several suicides at the Korea Advanced Institute of Science and Technology pointed out that a high powered incentive system might possibly be implicated.

Elite South Korean University Rattled by Suicides
"Mr. Suh also engineered a system that required students to pay extra tuition for each hundredth of a point that their grade point average fell below 3.0 (based on a 4.3-point system). All students pay a token fee each semester, Kaist administrators said, but otherwise their tuition is free, financed by government scholarships.

"Under the so-called punitive tuition program, a bad semester could cost a student’s family thousands of dollars.

"The program, which was applauded at first, has since led to deep humiliation and anxiety among many students. Those who struggled and lost their full rides suddenly saw themselves as losers. Some critics, calling it ruthless, even blamed the program for the recent suicides."

An Experimental Study of Sponsored-Search Auctions

That's the title of a new paper by Yeon-Koo Che, Syngjoo Choi, and Jinwoo Kim.

Abstract:
We study the Generalized Second Price auctions—a standard method for allocating online search advertising—experimentally, considering both the static environment assumed by the prevailing theory and a dynamic game capturing the salient aspects of real-world search advertising auctions. We find that subjects tend to overbid in both treatments relative to the Vickrey-Clarke-Groves outcome suggested as most plausible by the theory, but that their behavior in the dynamic game resembles the behavior in the static game. Our analysis thus lends support to the use of a static game as modeling proxy, but calls into question the prevailing equilibrium predictions.

Misc. kidney exchange

A nondirected donor chain that accomplished 3 transplants at Emory, where kidney exchange has been going on since 2009: story and video

Kidney donation kicks off life-saving chain reaction

"In this video, players in this extraordinary transplant exchange tell their story.

You can also watch “The Mother of All Swaps,” a news report from 11 Alive Atlanta"
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The Army embraces kidney exchange: WRAMC again a link in kidney-swap chain

"Last week, surgeons at Walter Reed performed four surgeries involving two couples in a chain of kidney transplant surgeries that began May 5 at hospitals within the National Capital Region — only the second kidney-paired swap in military history.
...
"Walter Reed surgeons participated in the first-ever transplant involved in a kidney swap chain for a U.S. military treatment facility in November. Retired Marine Gunnery Sgt. Joe Pinkowski received a kidney from a donor, and doctors recovered a kidney from his wife, Yolanda, for a patient at another hospital. The surgeries were a part of a record-setting kidney swap involving the couple and 24 other individuals in a series of 26 operations over six days at four hospitals in the region, saving the lives of 13 kidney patients ."
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A three way exchange on Long Island: Three-Way Kidney Exchange Meet for First Time at North Shore University Hospital

"For the first time since North Shore University Hospital established its Kidney Transplant Program in 2007, the transplant team headed by Ernesto Molmenti, MD, the program’s surgical director, and Louis Kavoussi, MD the North Shore-LIJ Health System’s chair of urology, performed a three-way kidney exchange involving donors who were unknown to the recipients until today. The donor chain starts with a person who wants to donate a kidney to a loved one or friend. That kidney is transplanted into a recipient who had a donor willing to give, but was found to be incompatible. To keep the chain going, the donor from the first pair gives a kidney to a patient he doesn’t know but who is a match. Specialized testing determines compatibility in each donor/recipient pairing.


"And so it was with the six people who came together today. Darlene Rawlins, 54, of Baldwin, had been on dialysis for two years. She had hoped that her daughter, Contrina Rawlins-Pettway, 26, also of Baldwin, could donate a kidney, but testing found that the two were incompatible. Same with Jacqueline Gonzalez, 46, of Hollis, who had hoped to receive a kidney from her son, Karl Jordan, 27, also of Hollis. Unfortunately, they were also not a match.

"The third pairing in the three-way exchange involved Steve Michalik, 64, of North Carolina, a bodybuilder who won 22 titles during the 1970s and 1980s, including Mr. USA in 1971, Mr. America in 1972 and Mr. Universe in 1975, against such competitors as Arnold Schwarzenegger and the “Incredible Hulk” Lou Ferrigno. Mr. Michalik asked his good friend Martin Hein Andersen, of Denmark, for a kidney. Participating in today’s news conference via Skype from Denmark, Mr. Andersen travelled to New York to get tested, but he too received the same news -- the two were incompatible.

"But thanks to the latest technology, teamwork and sophisticated testing, the transplant staff at NSUH found a way to make the three-way swap possible. On April 25, Dr. Kavoussi removed the kidneys laparoscopically from the donors and Dr. Molmenti surgically implanted them in each of the recipients. Most returned home three days later."

Limits on the scope of markets

Tim Sullivan points me to this old post by Abe Othman on his blog Constructive Economics: Horseflesh and Hypocrisy

"T. Boone Pickens, from his autobiography The Luckiest Guy in the World:

I believe the greatest opportunity lies in a free marketplace. There are powerful forces afoot trying to restrict that freedom in the interests of the vested and already wealthy.

"T. Boone Pickens, in congressional testimony on a bill to prevent the slaughter of horses for food:

The whole thing, it’s a boondoggle on the American people…People that are for the slaughter should be forced to go down on that kill floor…The brutal slaughter of horses for consumption by wealthy diners in Europe and Japan cuts against our moral and cultural fiber — it’s just plain un-American.

"Remember, if they can come after the horse slaughterers, they can come after the hedge funds. So if you really believe in free markets, have some horse today!"
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I'm inclined to think that Mr. Pickens is  being neither inconsistent nor hypocritical, but rather that he has opinions about the proper scope of markets.

When Steve Leider and I surveyed people on their attitudes towards whether kidneys should be for sale, one set of questions we asked concerned attitudes towards markets.

We measured agreement with statements that markets cause “an unfair distribution of income,” “rewards people fairly,” “lead to an efficient use of resources,” “require a lot of government control,” and are overall “fair and ethical.” However there was no correlation between disliking markets generally and disliking a market for kidneys: if anything, social conservatism was a predictor of dislike of kidney markets, and that was correlated with approval of markets generally. So, a picture began to emerge of people who liked markets generally, but thought they should they should not be extended into certain domains.  Maybe that's the view T. Boone Pickens is expressing.

(See Leider, Stephen and Alvin E. Roth, ''Kidneys for sale: Who disapproves, and why?'' American Journal of Transplantation , 10 (May), 2010, 1221-1227.)

Seeing red at Harvard

A sea of red at Harvard's commencement yesterday...

The Ph.D. grads got out of their gowns pretty fast as they came to lunch...

way to go, Judd.

The market for taxis

With a Start-Up Company, a Ride Is Just a Tap of an App Away
"Uber, a start-up based in San Francisco, offers a cellphone application that is aimed at making using a car service quick and painless.
...
"Uber is not a taxi or limousine company. Instead it operates as a dispatch service, working with local owners of licensed private car companies. Uber provides each car with an iPhone and software that manages incoming requests. When an Uber user needs a ride, the dispatcher and the closest car are notified, and the system sends back an estimate of the pick-up time. While they wait, users can monitor the car’s location on their phone."
...
"Uber, which is available for the iPhone and Android devices, requires users to enter their credit card information when they sign up. When they reach their destination, they can simply hop out, and the ride is charged to the card. Uber gets a percentage of each fare; the rest goes to the car services and drivers."

College admissions and income diversity

In this season of college graduations, David Leonhardt reports on the income distribution of students at selective colleges: Top Colleges, Largely for the Elite

"...a Georgetown University study of the class of 2010 at the country’s 193 most selective colleges. As entering freshmen, only 15 percent of students came from the bottom half of the income distribution. Sixty-seven percent came from the highest-earning fourth of the distribution. These statistics mean that on many campuses affluent students outnumber middle-class students.

“We claim to be part of the American dream and of a system based on merit and opportunity and talent,” Mr. Marx says. “Yet if at the top places, two-thirds of the students come from the top quartile and only 5 percent come from the bottom quartile, then we are actually part of the problem of the growing economic divide rather than part of the solution.”
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In case you don't know income quartiles off the top of your head, here they are (in much more detail than just quartiles, estimated for 2011) from the Tax Policy Center. The median income for a married couple filing jointly is estimated to be $75,000, and the 75th percentile is $130,000 (the 99th percentile is $762,000).

Frank Delmonico on transplant tourism in China

In a News and Views article in Nature Reviews Nephrology, Frank Delmonico describes commercial transplantation in China as still depending on organs from executed prisoners, and comments on a recent paper comparing the health outcomes of transplant tourist patients and other transplant patients, all from Taiwan.

Transplant tourism—an update regarding the realities by Francis L. Delmonico,
NATURE REVIEWS | NEPHROLOGY VOLUME 7 | MAY 2011, 248-50.