Economics and Engineering (and market design): some history and prehistory, at Stanford and elsewhere

The  December 2020 issue of History of Political Economy is devoted to Economics and Engineering.

Here's an account of Stanford and Bob Wilson (among others), written before the most recent Nobel prize to Wilson and Milgrom.

A Century of Economics and Engineering at Stanford by Beatrice Cherrier and Aurélien Saïdi

History of Political Economy (2020) 52 (S1): 85–111.  https://doi.org/10.1215/00182702-8717936

"This article documents the disciplinary exchanges between economists and engineers at Stanford throughout the twentieth century. We outline the role of key scholars such as Kenneth Arrow and Robert Wilson, as well as engineers turned administrators like Frederick Terman. We show that engineers drew upon economic theories of decision and allocation to improve practical industrial management decisions. Reciprocally, economists found in engineering the tools that they needed to rethink production and growth theory (including linear programming, optimal control theory, an epistemology of “application” that emphasized awareness to institutional details, trials and errors and experiments). By the 2000s, they had turned into economic engineers designing markets and other allocation mechanisms. These cross-disciplinary exchanges were mediated by Stanford’s own institutional culture, notably its use of joint appointments, the development of multidisciplinary “programs” for students, the ability to attract a variety of visitors every year, the entrepreneurial and contract-oriented vision of its administrators, and the close ties with the industrial milieu that came to be called the Silicon Valley.

..

"This article should not be read as a history of economics, engineering, or management science at Stanford and their idiosyncrasies.4  None of the research programs or institutional arrangements we describe were unique to Stanford. Rather, we document how some of the engineering and economics theories, tools, and epistemologies developed elsewhere were recombined in a specific institutional setting and entrepreneurial culture, and thus came to infuse the vision that some Stanford economists developed and spread in the last decades."

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The pdf to the full article appears to be ungated, and will be especially rewarding to old Stanford hands, who will recognize a lot of names from Operations Research as well as from Econ.

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And here's the introduction to the whole December special issue, by its editors:

Introduction: From “Economics as Engineering” to “Economics and Engineering”  by Pedro Garcia Duarte and Yann Giraud

History of Political Economy (2020) 52 (S1): 10–27.  https://doi.org/10.1215/00182702-8717898

"Economists such as Alvin Roth and Esther Duflo have recently argued that economics in the late twentieth century has evolved from (social) science to engineering. On the other hand, historians such as Mary Morgan and Michel Armatte have argued that the transformation of economics into an engineering science has been a century-long development. Turning away from the “economics as engineering” analogy, our introduction suggests an alternative approach to account for the presumed transformation of economics into an engineering science. We encourage the development of a history of “economics and engineering,” which depicts how these two types of knowledge–and the communities who produce them–have interacted in various institutional and national contexts. Drawing on the contributions to this 2020 annual supplement of HOPE, we show how these narratives may help change the historiography of twentieth-century economics."

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As it happens, I had the privilege of discussing some of these papers  in Atlanta in  2019 at the ASSA meetings, in a session sponsored by  the History of Economics Society, and chaired by Pedro Garcia Duarte.

Another paper from that session that appears in this issue of HOPE is 

Engineering the “Statistical Control of Business”: Malcolm Rorty, Telephone Engineering, and American Economics, 1900–1930  by Thomas A. Stapleford

History of Political Economy (2020) 52 (S1): 59–84.  https://doi.org/10.1215/00182702-8717924

"Malcolm Rorty is best known to historians of economics as the primary organizer and founder of the National Bureau of Economic Research. This article situates Rorty’s interest in economics against the backdrop of his early career in telephone engineering at American Telephone & Telegraph. I argue that distinct structural features of telephone engineering in general, and AT&T in particular, created overlaps between the practices of engineering and economics, and also opened space for Rorty to craft a broader vision for the “statistical control of business” through quantitatively informed management."