D47. Market Design is now officially a field of study

I returned last night from Philadelphia where the American Economic Association’s annual meeting was held. While I was there, my Pittsburgh colleague Asatoshi Maeshiro informed me that Market Design has arrived. In particular, the AEA publishes the Journal of Economic Literature, which classifies articles according to what field they are in. And the newest JEL Classification Codes include market design, under the overall heading of Market Structure and Pricing.  We’re D47.

•        D4          Market Structure and Pricing

•        D40        General

•        D41        Perfect Competition

•        D42        Monopoly

•        D43        Oligopoly and Other Forms of Market Imperfection

•        D44        Auctions

•        D45        Rationing; Licensing

•        D46        Value Theory

•        D47 Market Design

•        D49        Other

When you click on microeconomics, followed by market structure, followed by market design on the JEL classification webpage, you get to this description of the new field, with example (which are clickable on the web page, but don't seem to be when I copy them...:

D470 Market Design

Guideline: Covers studies concerning the design and evolution of economic institutions, the design of mechanisms for economic transactions (such as price determination and dispute resolution), and the interplay between a market�s size and complexity and the information available to agents in such an environment.

Keywords: Markets, Microeconomic Engineering, Price Formation, Quasi-markets

Caveats: Purely theoretical studies concerning mechanism design should be classified in D82. Purely empirical studies concerning market structure should be classified in the appropriate category under L1.

Examples:

• Investment Incentives and Electricity Market Design: The British Experience
• The Economist as Engineer: Game Theory, Experimentation, and Computation as Tools for Design Economics
• Unraveling Reduces Mobility in a Labor Market: Gastroenterology with and without a Centralized Match