"Social" science

A novel kind of crowd-sourcing is described in: In a Video Game, Tackling the Complexities of Protein Folding

"Proteins are essentially biological nanomachines that carry out myriad functions in the body, and biologists have long sought to understand how the long chains of amino acids that make up each protein fold into their specific configurations.

"In May 2008, researchers at the University of Washington made a protein-folding video game called Foldit freely available via the Internet. The game, which was competitive and offered the puzzle-solving qualities of a game like Rubik’s Cube, quickly attracted a dedicated following of thousands of players.

"The success of the Foldit players, the researchers report in the current issue of Nature, shows that nonscientists can collaborate to develop new strategies and algorithms that are distinct from traditional software solutions to the challenge of protein folding.

"The researchers took pains to credit the volunteers who competed at Foldit in the last two years, listing “Foldit players” at the end of the report’s author list and noting that more than 57,000 players “contributed extensively through their feedback and gameplay.” "

The (changing) market for law professors

The New Realities of the Legal Academy by Lawrence B. Solum

 "Abstract: This short paper is the Foreword to Brannon P. Denning, Marcia L. McCormick, and Jeffrey M. Lipshaw, Becoming a Law Professor: A Candidate's Guide, American Bar Association, Forthcoming.

"One of the great virtues of Denning, McCormick and Lipshaw’s guide is that it reflects the changing nature and new realities of the legal academy. Not so many years ago, entry into the elite legal academy was mostly a function of two things - credentials and connections. The ideal candidate graduated near the top of the class at a top-five law school, held an important editorial position on law review, clerked for a Supreme Court Justice, and practiced for a few years at an elite firm or government agency in New York or Washington. Credentials like these almost guaranteed a job at a very respectable law school, but the very best jobs went to those with connections - the few who were held in high esteem by the elite network of very successful legal academics and their friends in the bar and on the bench. The not-so-elite legal academy operated by a similar set of rules. Regional law schools were populated by a mix of graduates from elite schools and the top graduates of local schools, clerks of respected local judges, and alumni of elite law firms in the neighborhood. In what we now call the "bad old days," it was very difficult indeed for someone to become a law professor without glowing credentials and the right connections.

"But times have changed. When the Association of American Law School’s created the annual Faculty Recruitment Conference (or FRC) and the associated Faculty Appointments Register (or FAR), the landscape of the legal academy was forever changed. The change was slow in coming. For many years, candidates were selected for interviews at the FRC on the basis of the same old credentials and connections, but at some point (many would say the early 1980s), the rules of the game began to change. In baseball, a similar change is associated with Billy Beane, the manager of the Oakland Athletics, who defied conventional wisdom and built winning teams despite severe financial constraints by relying on statistically reliable predictors of success. The corresponding insight in the legal academy (developed by hiring committees at several law schools) was that the best predictor of success as a legal scholar was a record of publication. It turns out that law school grades, law review offices, and clerkships are at best very rough indicators of scholarly success. But those who successfully publish high quality legal scholarship are likely to continue to do so."
The paper itself is only 3 pages, and the abstract is a good summary...

Matching services for friends?

Robin Hanson asks "Why Not Friend Match?" I.e. why are there dating sites but not friend sites?

That isn't to say that there aren't friend matching sites (e.g. here, and here, not to mention  Facebook), but nevertheless his conjecture strikes me as plausible: we (at least initially) draw our friends from the people and places we encounter for other reasons, since friends complement our other activities. Or, as he puts it:

"Since we need friends in substantial part to serve as allies in our social world, supporting us against opposing coalitions, it makes sense to draw our friends from our existing social world. And since we need mates more for their personal quality, e.g., good genes, youth, wealth, smarts, mood, etc., it makes sense to pick them more via such features."

The international market for ironing boards

The Washington Post reports Indiana ironing-board factory faces stiff competition from Chinese companies.

"There is one factory left in the United States that manufactures the basic ironing board, and its survival against Chinese competition demands unrelenting, production-line hustle.

"The 200 people at the plant in this small town make their boards very, very cheaply and as fast as 720 in an hour. In three low-slung buildings without air conditioning, coils of cold-rolled steel are cut, welded, riveted and boxed, then loaded onto the Wal-Mart and Target trucks backed up to the loading dock. Paid with piece-rate incentives, workers emerge weary at shift's end.

"The people on the line are making pretty good money; it can work out to about $15 an hour," said Dave Waskom, 61, a tool and die maker who readied the plant's machinery for 37 years. "But they work like dogs."

"Yet loyalty and hard work are not enough.

The company survives in part because it convinced U.S. trade officials that Chinese firms were unfairly dumping ironing boards into the United States at less than fair-market value; in response, the United States levied anti-dumping taxes of 70 to more than 150 percent on its Chinese rivals."

Another live liver donation tragedy

Live liver donation remains much more dangerous than kidney donation: Donor dies after live liver transplant at CU Hospital


AURORA, Colo. - A man who agreed to donate part of his liver to help save his brother died just four days after the transplant procedure at The University of Colorado Hospital.


"It's the first death of a living liver donor in Colorado and only the fourth in the U.S.

"The death has led to a temporary halt of all live donor liver transplants at The University of Colorado Hospital. The hospital has also launched an investigation into what went wrong.

"It has reported the death to the Colorado Department of Public Health, which is conducting its own investigation.

"Ryan Arnold, 34, of Watertown, South Dakota died on August 2nd, just four days after his brother, Chad, 38, of Castle Rock, received part of his liver. "

There was an earlier death this year.

Suicide and organ donation

Assisted suicide is one of the persistently repugnant transactions, although it is the subject of a good deal of modern debate around the world. Here's a story likely to give you pause to think: Lou Gehrig's victim: Kill me for my organs 

"he ... compares his situation to a soldier in a foxhole throwing himself on a grenade to save his comrades.

"I am not suicidal," he says. "I just know that it is a matter of time before I die and wish to do a good thing for those people who have a good life expectancy"

The market for celebrity endorsements

The story under this eye-catching headline sheds some light on the endorsement biz: Paris Hilton Sued for $35M for Wearing Wrong Hair

"A company that manufactures hair extensions claimed the 29-year-old socialite breached her contract to wear and promote their product when she sported the fake locks of a competitor in 2008.
Hairtech International Inc. is seeking $35 million in damages -- 10 times what she was apparently paid under the contract. The fraud and breach-of-contract suit cites the heiress' partying as contrary to Hairtech's marketing campaign.
The filing also claims Hilton missed a launch party for the hair extension line because she was serving a stint in jail in 2007. Hilton served 23 days in 2007 after she was caught driving twice on a suspended license while on probation for reckless driving.
The filing states the company's lost $6.6 million on the launch party alone, although a jury or judge will have to decide whether Hilton owes any money if the case goes to trial."

Language exchanges

Learning a Language From an Expert, on the Web reports on various communities of language learners who help each other out.
"Livemocha, a Seattle company with $14 million in venture capital financing, mixes a social network with lessons for more than 38 of the world’s more common languages.

"The initial lessons are free, but unlocking some of the additional features requires a fee to Livemocha (starting at $10 for a set of lessons) or an agreement to correct the work of others..."

"MyLanguageExchange.com just maintains lists of people who know certain languages and want to learn others. Anyone can search the database, but only gold members, who pay $24 a year, can send e-mail easily to others."
...
"RhinoSpike.com set up a market for recordings spoken by native speakers. Anyone can post a selection of text and anyone can post a recording."
...
"Companies like RosettaStone.com, GermanPod101.com, ChinesePod.com and a surprisingly large number of other Web sites are competing to offer lessons and tutoring to students throughout the world. I found dozens of others offering what was found only on PC software a few years ago.

...
"There are even more casual approaches that come with even less infrastructure and fewer of the protections for consumers that it may offer. It is easy to find, for instance, people who want to practice languages with a free phone call through the forums run by Skype. One click and you can talk free with someone who wants to practice another language. The standard protocol is to spend half the time on one language and half the time with the other.

"Some sites, like UsingEnglish.com, englishcafe.com and Englishbaby.com, are devoted to helping people practice English but add the elements of sharing photos and interests like a dating service. "

Education as a filter--for Supreme Court justices

Yale, Harvard Law Taking Over Supreme Court

"In a new paper, Patrick J. Glen, an adjunct professor at Georgetown University Law Center, researched the legal educations of Supreme Court justices through time and found a curious pattern."

...

"However you categorize Justice Ginsburg’s pedigree, one fact would still be guaranteed by Ms. Kagan’s confirmation: For the first time in history, every sitting Supreme Court justice will have graduated from an Ivy League law school.

Mr. Glen writes, “Kagan will take the place not only of the last remaining Protestant on the Court, but also of its last non-Ivy League hold-out—the Chicago educated Justice John Paul Stevens (Northwestern Law School).”

So in some respects, the court has gotten a little more diverse over the years, with Congress confirming more racial minorities and women. But perhaps that just reflects the changing admissions processes at the nation’s top two law schools."

In this story covering her swearing in, the Times' Peter Baker writes
"Arguably, Justice Kagan made a mark from the moment she took the oaths on Saturday. She is the third woman on the current court, joining Justices Ruth Bader Ginsburg and Sonia Sotomayor. She is also the fifth justice born after World War II, making that group a majority, and she brings down the average age on the court to 64, from nearly 69. And she is the first person since William H. Rehnquist, 38 years ago, to join the court without experience as a judge.
If her installation added diversity in some ways, though, it reinforced the court’s lack of it in other areas. Her addition means the court now includes neither Protestants nor anyone without an Ivy League background. Justice Kagan joins two other Jewish justices and six Catholics. She is the sixth justice to have studied at Harvard Law School (although Justice Ginsburg later transferred to and graduated from Columbia Law School); the other three graduated from Yale Law School. And she is the fourth justice to have grown up in New York City." 

Marriage, jobs, and immigration

A recent NBER paper relates two things whose interaction has fascinated me for some time (the marriage and job markets) with a third, immigration.

America's settling down: How Better Jobs and Falling Immigration led to a Rise in Marriage, 1880 – 1930 by Tomas Cvrcek, NBER Working Paper No. 16161, July 2010.

Abstract: The growing education and employment of women are usually cited as crucial forces behind the decline of marriage since 1960. However, both trends were already present between 1900 and 1960, during which time marriage became increasingly widespread. This early period differed from the post-1960 decades due to two factors primarily affecting men, one economic and one demographic. First, men’s improving labor market prospects made them more attractive as marriage partners to women. Second, immigration had a dynamic effect on partner search costs. Its short-run effect was to fragment the marriage market, making it harder to find a partner of one’s preferred ethnic and cultural background. The high search costs led to less marriage and later marriage in the 1890s and 1900s. As immigration declined, the long-run effect was for immigrants and their descendants to gradually integrate with American society. This reduced search costs and increased the marriage rate. The immigration primarily affected the whites’ marriage market which is why the changes in marital behavior are much more pronounced among this group than among blacks."

Brokers for pirate ransom

Suppose your ship were hijacked by Somali pirates, and you wanted to ransom it and the crew. How would you go about it?  You would need a middleman, someone who could get the money to the right pirates, and maybe who played a repeated game with them, to help ensure that the release would go as planned. As it happens, you might become the client of a certain kind of British law firm, whose market is now threatened by the imposition of sanctions against those who deal with certain named Somali pirates. The problem is, it may be impossible to pay a ransom without doing business with the embargoed individuals. The Financial Times reports: Somali crackdown threatens City role on ransoms

"International plans for a legal crackdown on the funding of piracy could scupper a burgeoning City industry.
"The United Nations plans for sanctions on two suspected pirates would hit the often lucrative work of the law firms, insurers and private security companies in London that quietly arrange ransoms to free kidnapped ships and crews."
...
"The government has decided to block the UN plans amid worries they could force shipowners and their advisers to stop paying ransoms or else risk prosecution.


"London’s piracy negotiation business brings together an unusual cast of characters, from hard-bitten security operatives to dapper lawyers making telephone calls to hijacked ships from offices close to the banks of the Thames.


"NYA International, a kidnap response specialist based off Bishopsgate and now part of Aon, the US insurance broker, has advised on more than 20 piracy incidents during the past 18 months or so.


"The leading ship hijack case law firm in terms of numbers of clients is said to be Holman Fenwick Willan, which has offices north-west of the Tower of London.


"James Gosling, partner at HFW, said: “Nobody wants to pay ransoms. But when it’s the only option, what the hell else do you do?” "
...
"The concern about sanctions is that, while they do not explicitly outlaw the payment of ransoms, they make it impossible in practice because of the uncertainty about where money given to pirates will end up.

“The problem is the due diligence,” Mr Roberts said. “How can you possibly know if the money is going to that [sanctioned] person or not?”

"Maritime lawyers in London say they were encouraged by a High Court ruling this year that paying ransoms wasn’t contrary to British public policy, although they admit the argument over the subject is increasingly becoming political rather than legal.

"That is why the capital’s community of piracy-related businesses is appealing to the government to hold firm in stopping the UN proposal and the sanctions it would introduce.

"As one London-based insurer, who asked not to be named, put it: “We would be very concerned if shipowners were denied a means to free pirated ships.

“There are no navies prepared to go all guns blazing to rescue people – and it wouldn’t work, either.” "

New Orleans Receivables Exchange

In several earlier posts I've been following the progress of the New Orleans Receivables Exchange.

The State of Louisiana has now passed some legislation that makes it easier for companies to sell their accounts receivable: here's the text of the Louisiana Exchange Sale of Receivables Act.

And here's an article from Inc. Magazine: A New Liquidity Solution

Korean marriage brokers for foreign brides

After a tragedy involving the death of a young woman, SKorea Cracks Down on Marriage Brokers .

"...Her death in early July has drawn attention to the growing trend of South Korean men looking overseas for brides...
"Over the past decade, a growing number of South Korean men, particularly from farming villages with dwindling populations, have been looking overseas for wives....
"They pay an average of $9,900 to brokers to connect them with young women looking for economic security, mostly from Southeast Asia and China, Heo said.

''International marriages are in a way a practical intersection of interests, bringing together South Korean bachelors and foreign women who suffer from poverty and have a romanticized notion of a prosperous life in an industrialized country like South Korea,'' Heo said.
"In 2009, 180,000 foreigners were married to South Koreans, including more than 35,000 Vietnamese women, the Ministry of Public Administration and Security said.
"Many met their spouses through the estimated 1,250 marriage brokers or matchmakers who arrange an estimated 15,000 marriages each year between South Korean men and foreign women, mostly from Southeast Asia, the Ministry of Gender Equality and Family said. "

Organ donation registration on income tax forms

Organ donation checkoff proposed for tax forms

"LANSING, Mich. - Michigan's secretary of state wants to make organ donation easier by adding a checkoff box on annual tax forms.
Terri Lynn Land says the box would be similar to the current section of the tax form that asks filers if they want part of their taxes to go to the State Campaign Fund.
Tax filers would have the option of marking the box which allows their names to be added to Michigan's Organ Donor Registry.
Land says the proposal allows for a convenient way for organ donors to sign up and allows every Michigan taxpayer to be reached "at virtually no cost" during current lean fiscal times. Her proposal has to go before the state Legislature."

HT Steve Leider

The market for electricity

As the supply of electricity changes in response to growing numbers of wind turbines, there's more need to be able to store electricity: Wind Drives Growing Use of Batteries

"In New York and California, companies are exploring electrical storage that is big enough to allow for “arbitrage,” or buying power at a low price, such as in the middle of the night, and selling it hours later at a higher price. In the Midwest, a utility is demonstrating storage technology that can go from charge to discharge and back several times a minute, or even within a second, bracing the grid against the vicissitudes of wind and sun and transmission failure. And in Texas, companies are looking at ways of stabilizing voltage through battery storage in places served by just one transmission line."

I also recently heard of attempts to create more flexible demand by fitting households with electrical heat storage units, that heat bricks when electricity is cheap, and power the household heating system off the stored heat.

School choice in Darebin City, Victoria, Australia

It sounds like at least one school district in Australia has less bureaucracy than my colleagues and I have encountered in helping American cities reorganize their school assignment systems. Kwanghui Lim at CoRE Economics reports: Game Theory in Action: Sven Feldmann on Kindergarten Matching.

More on school choice here, and here. (And here is a video of Muriel Niederle presenting a new school choice algorithm to the San Francisco school board meeting that gave the go ahead for a redesign there.)

WHO: blood donation insufficient in developing countries

The World Health Organization reports

• "65% of all blood donations are made in developed countries, home to just 25% of the world's population.

• In 73 countries, donation rates are still less than 1% of the population (the minimum needed to meet basic needs in a country). Of these, 71 are either developing or transitional countries.
• 42 countries collected less than 25% of their blood supplies from voluntary unpaid blood donors, which is the safest source.
• 31 countries still reported collecting paid donations in 2007, more than 1 million donations in total.
• 41 countries were not able to screen all blood donations for one or more of the following transfusion-transmissible infections (TTIs)–HIV, hepatitis B, hepatitis C and syphilis."

They recommend programs of voluntary blood donation:
"Safe blood donors are the cornerstone of a safe and adequate supply of blood and blood products. The safest blood donors are voluntary, non-remunerated blood donors from low-risk populations. Despite this, family/replacement and paid donors, which are associated with a significantly higher prevalence of transfusion-transmissible infections (TTIs) including HIV, hepatitis B, hepatitis C, syphilis and Chagas disease, still provide more than 50% of the blood collected in developing countries. WHO advocates and recommends to its Member States to develop national blood transfusion services based on voluntary non-remunerated regular blood donation in accordance with World Health Assembly resolution 28.72, which was adopted in 1975. "

Kidney Exchange in South Korea

S. Korea was a pioneer in kidney exchange. (In the U.S. population, Asians have the highest frequency of blood type B, almost equal to their frequency of A, and so the simplest exchanges of an A-B patient donor pair with a B-A patient donor pair come up more often among Asians.)

Here's a report of their experience.

J Korean Med Assoc. 2008 Aug;51(8):717-723. Korean.

Exchange Living-donor Kidney Transplantation: The Present and Future. Huh KH, Kim YS, Kim BS. Department of Surgery, Yonsei University College of Medicine, Korea. yukim@yuhs.ac Department of Internal Medicine, Yonsei University College of Medicine, Korea. Abstract The shortage of donor organs is one of the major barriers of transplantation worldwide. After the success of the direct exchange donor (swap) program in Korea since 1991, a swaparound program has been developed. Recently, a web-based (computerized) algorithm to facilitate donor kidney exchange was devised and tested in multi-center settings. An excellent longterm outcome was achieved by using the donor exchange program as an option to reduce the donor organ shortage. Herein, we discussed on the current status of the exchange donor renal transplantation in Korea, a couple of problems we have had, and future directions we have to head and make better to improve organ donation activities.

More market design in Hebrew

Forbes has an Israeli edition, and here is a Hebrew translation of the article that ran in English here.

(Here's a different market design article in Hebrew, featuring Itai Ashlagi, that I posted about earlier.)

Repugnance and/or disgust

I like to distinguish what I've called repugnant transactions from those that elicit disgust. By repugnant transactions I mean transactions that some people want to engage in and that others don't want them to (e.g. same sex marriage, or buying or selling a kidney, or ordering horse meat at a U.S. restaurant). One sign that a transaction is viewed as repugnant by a sufficiently big part of the population is if it is illegal. Disgusting transactions most often don't elicit legislation (except in a consumer protection way), e.g. it's illegal in CA to offer to sell horse meat for human consumption, but not, say, spit: the difference being that some people would like to buy and eat horse meat.

However there's no denying that part of what makes some transactions repugnant to some people is that they find them disgusting (see e.g. Martha Nussbaum on same sex marriage). There have been recent reports in the press and blogosphere on attempts to link physiological indicators of disgust to, among other things, political proclivities.

Nicholas Kristof in the NY Times gives a quick overview of some conclusions of this sort: Our Politics May Be All in Our Head

Mark Liberman at Language Log takes a closer look: Physiological politics, and suggests that at least some of the results could be artifacts of the experiment. (He has a followup here: Icktheology.)

In the context of organ transplantation, I've noted that the repugnance to sales of organs is hard to equate with a visceral disgust reaction, since there isn't repugnance to transplants in general. There may of course be specific exceptions to that, see e.g. this article in the American Journal of Transplantation:

"Specific Unwillingness to Donate Eyes: The Impact of Disfigurement, Knowledge and Procurement on Corneal Donation" (p 657-663)M. Lawlor, I. Kerridge, R. Ankeny, T. A. Dobbins, F. BillsonPublished Online: Jan 29 2010 2:23PM

The market for once-used wedding dresses

For Sale: One White Dress, Yet to Be Worn
"AS more brides try to sell their used wedding dresses online, some have found a way to stand out from the competition: putting their gowns up for sale before even walking down the aisle.
A growing number of postings for so-called presale dresses have popped up among the listings on sites like oncewed.com, preownedweddingdresses.com and woreitonce.com.
...
"A used dress generally sells for about 50 percent off retail, whether sold before or after the wedding. But brides see an advantage to selling before the wedding because the styles are still current and other brides often can try on the same dress in stores. That, they say, enhances the likelihood of a quick sale.
...
"Zofia Gajdamowicz, 27, a bartender in Toronto who hopes to sell her Modern Trousseau dress before her wedding in late October, said she will “have to be a little more careful” if she finds a buyer.
“I already told my friends, ‘Don’t let me drink any red wine,’ ” she said."

The market for professionally taken digital photographs

I was recently the subject of a magazine story, and, before it was published, the photographer Shawn Henry came to campus to "take my picture". That phrase doesn't do justice to what he actually did, which resulted in 148 photographs, eventually edited down to 30, and then to 5 that were sent to the magazine editors to choose the final one.

Mr Henry has given me permission to link to his copyrighted photos, in case you want to see how this sausage was made: here are the 148 pictures, the 30 pictures, and the final one (this link may take a minute to load, it's to the Forbes article...)

These pictures didn't take a lot of time for him to make; as I recall, we were together for about half an hour. (Even though we were outdoors, he deployed some lights and reflectors.)

Seeing how a pro works has made me feel better both about how I often don't like either how I look in pictures, or how other people look in pictures that I take.  Many of the pictures linked above were not so flattering (particularly in the set of 148), but I liked the final one. So selection from a wide variety helps. (And now I just need to lose a little weight:)

Modern electronics have probably changed not only the equipment that photographers use, but also how they work.

The market for boasting

How did people boast signal before they had blogs?

Not long ago I was the subject of a flattering profile in Forbes (which I wrote about in this earlier blog boast post).
Yesterday I received a letter in the mail from a company that "specializes in turning articles into custom designed plaques."

It's not a bad idea, and if I were a restaurant, I'd buy one right away, and post it next to the menu, preferably where it could be read from the street.

Kidney transplantation advice from the Netherlands

Two recent reports from the Netherlands give advice drawn from their active transplant program.

The (American) National Guideline Clearinghouse highlights one set of recommendations: Kidney donation. In: Guidelines on renal transplantation. European Association of Urology - Medical Specialty Society. 2009 Mar. 23 pages. NGC:007337 (full text here.)

The first three recommendations under the first category of recommendations, "Ethical Issues in Transplantation," illustrate some of the conflicting forces at work:

• "It is the right of individuals to donate as well as to receive an organ.
• "Commercially motivated renal transplantation is unacceptable. It has been widely prohibited by law and is strongly opposed by the International Society of Transplantation.
• "With the increasing success of living-donor transplants, as judged by graft and patient survival, and with the scarcity of deceased donor organs, living-donor transplants should be encouraged. "
• The altruistic living donor must give informed consent, which can only be obtained if he or she has a proper understanding of the risk involved.

They have this to say about kidney exchange:

• Paired kidney exchange if permitted by national law is a way of increasing the number of kidney transplants..

Another report, focused specifically on kidney exchange is from Clinical Transplants 2009:247-52, "On chain lengths, domino-paired and unbalanced altruistic kidney donations," by de Klerk M, Zuidema WC, Ijzermans JN, Weimar W. Dept of Internal Medicine - Transplantation, Erasmus MC, University Medical Centre Rotterdam, Rotterdam, The Netherlands.

"Abstract: Kidney transplantations with living related and unrelated donors are the optimal option for patients with end-stage renal disease. For patients with a willing--but blood-type or HLA incompatible donor--a living-donor kidney exchange program could be an opportunity. In Asia, the United States and Europe, kidney exchange programs were developed under different conditions, with different exchange algorithms, and with different match results. The easiest way to organize a living-donor kidney exchange program is to enlist national or regional cooperation, initiated by an independent organization that is already responsible for the allocation of deceased donor organs. For logistic reasons, the optimal maximum chain length should be three pairs. To optimize cross-match procedures a central laboratory is recommended. Anonymity between the matched pairs depends on the culture and logistics of the various countries. For incompatible donor-recipient pairs who have been unsuccessful in finding suitable matches in an exchange program, domino-paired kidney transplantations triggered by Good Samaritan donors is the next alternative. To expand transplantations with living donors, we advise integrating such a program into a national exchange program under supervision of an independent allocation authority. If no Good Samaritan donors are available, an unbalanced kidney paired-exchange program with compatible and incompatible pairs is another strategy that merits future development."
PMID: 20524290 [PubMed - in process]

Their conclusion that "the optimal maximal chain length should be three pairs" has certainly not been the U.S. experience: my conjecture is that they are limited to the operating rooms they can organize in a single hospital.

Kidney exchange in Haaretz

Here's an article (in Hebrew) on kidney exchange, featuring the work of Itai Ashlagi. (The article is also here.)

Update: it wasn't in Haaretz itself, but in an accompanying magazine supplement.

Economics and computer science

The links between economics and computer science are growing steadily closer, judging from this report conveyed by Noam Nisan about the Shanghai summer school in algorithmic game theory.

Paul Klemperer's "product mix auction"

Paul Klemperer writes from Oxford:

"the Bank of England has now been running my "product mix auction" for the last two months almost exactly as set out in Section 2 of "The Product-Mix Auction: a New Auction Design for Differentiated Goods" (including "paired bids" etc.)

"Although I designed it for the financial crisis when I was consulted in 2007 after Northern Rock bank run, full implementation was slow. But it is now fully implemented and running regularly (in part, so using it is not seen as a signal of crisis).

"It's perhaps best understood as a "proxy" version of a simultaneous multiple round auction. That is, bidders input their preferences, and the auction chooses the outcome that an SMRA would select assuming straightforward bidding. Because the auction is "sealed bid", it runs instantaneously (important in the Bank's financial-market context), and it therefore also less vulnerable to collusion. Another novel feature is that the auctioneer also bids its preferences about how the proportions of different varieties that it will sell will depend upon the auction prices. (By contrast, SMRA implementations I am aware of specify the number of each type of good to be sold in advance.) It's also related to Paul Milgrom's independently-invented assignment auction, but the way bidders represent their preferences is different (easier and more general in some ways).

"The Bank's specific problem is to auction loans linked to varying qualities of collateral [to inject liquidity into the banking system rapidly], but

        --charge different borrowers different interest rates reflecting the different collateral-qualities [to reduce moral hazard];

        --allow market conditions, as revealed by the bids, to determine BOTH the interest-rate-premium for inferior collateral AND the proportion of inferior collateral accepted [because the Bank may neither be sufficiently informed about conditions, nor wish to send a 'signal' to the market];

        --permit borrowers to specify how the collateral they supply will depend upon the auction outcome [because the interest-rate-premium is not - see above - pre-specified]

"I've advised other Central Banks. Other future applications might include other purchasing "toxic assets", selling electricity, and trading biodiversity."

Peer to peer overnight accommodations

The NY Times reviews sites of "social network bed and breakfasts" on which you can reserve rooms for overnight stays in cities around the world: Europe Without Hotels.

The sites have various ways to protect against scams:

"In Paris, AirBnB has places in every arrondissement, including $13-a-night rooms in the western suburbs and $285-a-night houseboats on the Seine. As the first Web site of its kind to grab the headlines, the system has already developed a large and loyal user base. Some properties have as many as 70 user-generated reviews, which give paying guests a greater sense of confidence. It is similar to how eBay works: you’re more likely to buy from an eBay seller with good feedback." ...

"After the brief tour, I gave Mr. Mostaedi the code that allows him to collect my payment from iStopOver. That’s one of the safeguards that iStopOver offers to guests. If a listing turns out to be fraudulent or misstated, you can refuse to give the owner the code, and the fee is refunded in full. Other services offer similar protections: AirBnB withholds a host’s payment until 24 hours after guests check into an accommodation in order to fend off potential scammers, and Crashpadder uses credit card payments to verify guest identities (though it says it will monitor but not otherwise involve itself in any disputes)."

Here are the sites mentioned:

"AIRBNB.COM
AirBnB.com, founded in 2007 in San Francisco, is the largest of this new generation of social B&Bs and has the most user reviews.
Where: About 5,378 cities in 146 countries.
Accommodations: Air mattresses to entire villas.
Price: In New York, from $10 for a room to $3,000 for a loft.
ISTOPOVER.COM
IStopOver, founded in 2009 in Toronto, specializes in big events, like this summer’s World Cup in South Africa.
Where: Mostly North America, Europe and South Africa.
Accommodations: Apartments and houses.
Price: $10 to $8,000 a night.
CRASHPADDER.COM
Founded in 2008 in London, Crashpadder.com operates mostly in Britain, with a surge expected during the 2010 Olympics in London.
Where: 898 cities, including more than 1,000 listings in London.
Accommodations: Bedrooms to houses.
Price: From £15 (about $21 at $1.43 to the pound) a night, plus £3 booking fee.
ROOMORAMA.COM
Founded in 2008, Roomorama.com focuses on higher-end properties, especially in New York City.
Where: 36 cities, including more than 1,000 listings in New York.
Accommodations: Bedrooms to houses.
Price: From $30 to $5,000, plus an 8 to 12 percent booking fee. "

Unraveling of law firm interviews of 2nd year students

Catherine Rampell has an informative article about The Other Law School Arms Race.  The date at which large law firms interview 2nd year law students (for summer associate positions that are the entry path to permanent positions after graduation) has moved earlier, to the summer before the second year begins.

"Speaking of the career paths for new lawyers, we’ve noted before that the sour legal job market has encouraged law schools to find creative ways to make their students look more attractive to employers, at least when compared with students from other schools. Intentional grade inflation is one particularly controversial tool schools have been using.


"But the arms race has found another battlefield as well: on-campus interview week.At most top schools, early in the second year of law school, dozens of law firms visit campus to conduct a round-robin of job interviews with students. These interviews are the first step to a summer associate job after the second year, and oftentimes a permanent job offer after graduation following the third year of school.

"The exact timing of this “on-campus interview week” has traditionally varied by school, and from firm to firm, thereby allowing different firms to send recruiters to Harvard one week, Columbia the next, Chicago the following week, and so on.

"But with the job market so tight, last year schools began worrying that if law firms visited them later in the fall, the few job offers available would already be gone. So many top schools bumped up their on-campus interview weeks from October to September to finally August, before the school year even starts, because they wanted their students to have a chance to claim a job slot before their counterparts at other schools did."
...
"In February the organization that creates guidelines for legal recruiting process, NALP, released new rules about how long job offers could stay open, a measure intended to curb this interviewing arms race. But the new guidelines have not so far inspired any coordinated new schedule for interviewing process. "
...
The article closes with a news release from Northwestern: Northwestern Law, Jones Day Agree to On-Campus Interviewing in September

"CHICAGO --- Northwestern University School of Law and the global law firm Jones Day announced today July 26 that the firm will conduct its on-campus interviews for 2011 summer associates in September instead of during the law school's official on-campus interviewing (OCI) program, which begins Aug. 11. In a move benefiting both students and law firms, Jones Day will conduct interviews on behalf of its 14 U.S. offices on Monday, Sept. 13.


"Jones Day joins Northwestern Law in the belief that the current recruitment system has created a competitive race among law schools and law firms to conduct on-campus interviews earlier. The result is an inefficient system that does not serve employers or student applicants well, according to the law school and law firm.

"The current system discourages the efforts of law firms to learn about all the competencies (over and above grades) of potential associates," according to David Van Zandt, dean, Northwestern Law. "It also requires firms to make employment decisions and predictions about their hiring needs too far in advance of permanent start dates.

"The compression of summer associate interviews in August is also problematic for students since it constrains their time to make sensible decisions about with whom to interview, to adjust interviewing techniques based on what they learn during the process, or to make sound decisions about offers of employment," said Van Zandt. "It contributes to a frequent lack of fit between graduates and the law firms, which inevitably leads to higher attrition levels for the firms."

"Taking this step with Northwestern will help show that a more balanced, less frenzied approach to on-campus recruiting is not only still possible, but indeed desirable for all concerned -- students, law schools and law firms," said Greg Shumaker, firmwide hiring partner at Jones Day.

HT: Eric Budish

Squirrel game theory

Natalie Angier reports on squirrel game theorists in the NY Times: Nut? What Nut? The Squirrel Outwits to Survive

"But the squirrels don’t just bury an acorn and come back in winter. They bury the seed, dig it up shortly afterward, rebury it elsewhere, dig it up again. “We’ve seen seeds that were recached as many as five times,” said Dr. Steele. The squirrels recache to deter theft, lest another squirrel spied the burial the first X times. Reporting in the journal Animal Behaviour, the Steele team showed that when squirrels are certain that they are being watched, they will actively seek to deceive the would-be thieves. They’ll dig a hole, pretend to push an acorn in, and then cover it over, all the while keeping the prized seed hidden in their mouth. “Deceptive caching involves some pretty serious decision making,” Dr. Steele said. “It meets the criteria of tactical deception, which previously was thought to only occur in primates.”

Paid drug trials

The Chronicle of Higher Ed has a (gated) story about professional volunteers for drug trials: Inside the Risky World of Drug-Trial 'Guinea Pigs'

"Since 1980, when Phase 1 drug tests on prisoners were banned in the United States, university medical schools and pharmaceutical companies have depended on volunteers like Mr. Little to test the safety of new drugs. Bioethicists have devoted thousands of pages to debates about the system. Some fear that high payments for volunteers are an "undue inducement" that might tempt them to take risks against their better judgment. Others say that people like Mr. Little are consenting adults who are reasonably capable of assessing danger.

"Most of those debates have been conducted in the abstract. But now an anthropologist has produced a study of several dozen medical volunteers, including Mr. Little. Roberto L. Abadie, a visiting scholar in the health-sciences program at the Graduate Center of the City University of New York, spent a year living in youth hostels and group houses in Philadelphia, trying to get a sense of why volunteers do what they do and how they understand their risks.

"He offers his findings in The Professional Guinea Pig: Big Pharma and the Risky World of Human Subjects (Duke University Press, August). The book's primary purpose is to offer a detailed description of medical volunteering and its contexts, not to weigh in on the ethics of clinical trials. But after his year in the field, Mr. Abadie does have opinions about policy: Volunteers underestimate their long-term risks, he says, and universities should do more to protect them."...
"Mr. Abadie spent time with anarchist activists who are attracted to guinea-pigging because of the flexibility it offers. Between 1996 and 2002, that milieu was documented in Guinea Pig Zero, a Philadelphia zine published by and for activist medical volunteers.
"But Mr. Abadie's book also examines two other types of medical volunteer. First, he describes transient, economically struggling people who travel from place to place in search of lucrative trials. These volunteers are often less educated and more socially isolated than the anarchists.
"Second, Mr. Abadie spent months at an HIV clinic where patients were participating in long-term trials to determine the effectiveness of new drug combinations. That environment is very different from the Phase 1 trials described elsewhere in the book. At the clinic, the HIV patients knew they had a personal stake in the development of new drugs, and the financial compensation they received was much smaller. Even though they were taking risks by participating in the drug studies, Mr. Abadie says, those volunteers seemed to reap psychological gains."

I'm reminded that we teach kids that the tooth fairy buys their baby teeth for money. But of course many sales of body parts are regarded as repugnant transactions and are illegal, while paid drug trials are legal.

Internet dating moves (back) into the real world

Computers can provide a multitude of services, and a new class of dating services uses them not to help people meet others, but to preserve their anonymity until they decide to relinquish it: The New Dating Tools: A Card and a Wink.

"This is the next generation of online dating. Unlike traditional dating sites where members spend hours on computers writing autobiographies and scrutinizing photographs, a raft of newfangled dating tools are striving to better bridge the gap between online and real-world romance.

"Some companies offer a combination of flirty calling cards and Web pages. Others operate dating applications that use the global positioning systems in cellphones to help local singles find one another.

"All of them contend they are superior to big online dating sites like Match.com; eHarmony.com because meeting people is faster, more organic and less formal. And participants are not limited to a database of members: the world is their dating pool.

“It’s almost like you’re shopping online,” said Ms. Cheek, “but you’re shopping in real life.”

"At the same time, these hybrid dating tools still enable users to keep their names and personal information private for as long as they like.

"Ms. Cheek, an architect who works part-time in sales for a high-end Manhattan furniture company, founded one such venture, Cheek’d, which had its debut in May. Users receive calling cards to dole out to alluring strangers they encounter in their everyday lives, be it in a club or in a subway on their morning commute. Recipients of the cards can use the identification code printed on them to log onto Cheekd.com;and send a message to their admirer. A pack of 50 cards and a month’s subscription to Cheek’d, where users can receive messages and post information about themselves, is $25. There is no fee for those who receive cards to communicate with an admirer through the site."
...
"On each red FlipMe! card is an explanation for the recipient: “I’ve said ‘what if’ too many times ... not this time.” A pack of 30 cards and a three-month membership to flipmedating.com is $24.99. The cards, which all say the same thing, are sold online and in some salons and spas in the Northeast. A cellphone application is in the works."
...
"Card users said companies like FlipMe! and Cheek’d are emboldening them to approach people who might otherwise have been missed connections. They also appreciate how the companies reverse the online dating process — observe someone in person first, then send an electronic message. There’s no need to contend with false advertising on dating Web sites."
...
"Other companies are helping singles connect through location-based technology on their mobile phones. In the last few years the number of Web sites and applications like Grindr, Are You Interested? and Urban Signals, has swelled.

"One of the biggest is the free iPhone dating application Skout, which recently surpassed its millionth member. Skout uses a cellphone’s global positioning system to help users to find like-minded people within a walkable radius of one another. (For safety reasons, Skout does not identify a user’s precise location.) Those who sign up for the application create basic profiles with photographs and then use an instant message feature to communicate when they are within range of each other. Then, they can arrange a mutual meeting spot.

“It’s really combining the best of online dating and real-world people discovery,” said Christian Wiklund, Skout’s founder."

Dan Ariely on online dating

A transcript and a video interview here.

Advice for Wake County schools

It sounds like the troubled Wake County school system is about to get some advice on school choice.  But, to the extent that you can judge from a newspaper story, they may not be looking for the right kind of advice, or in the right places (more about right places at the end...)

Here's the problem. Suppose you want a school choice plan, and would like to be able to say that it results in lots of families getting their first choice. That might be hard, if the most popular schools are overdemanded.  But you could adopt a choice procedure that is punitive to those who fail to get the school they list as their first choice. That would present families who liked overdemanded schools with a risky decision, and the safe choice would be to choose a school (e.g. their local school) that they could be pretty confident of getting into, and saying that was their first choice. When parents feel compelled to play it safe this way, it looks like they are getting their first choice, even though they aren't really. Once upon a time that was how schools were chosen in Boston, and that kind of system is still used in some places, including Cambridge, MA.

So, here's the news story that makes me worry about this.

Idea intrigues Wake school board factions
"A controlled choice model for Wake would create a dozen or more attendance zones, each of which would reflect the makeup of Wake County - no rich zones or poor zones, said Massachusetts education consultant Michael Alves, who's helped design dozens of such systems nationally.

"Parents would be able to choose from a wide range of school offerings in their zone, with a lottery to make another choice when schools are too crowded or apply to a countywide system of magnets, Alves said. He will be in Raleigh on Tuesday for a presentation before the board committee charged with developing a new plan. Parents would not be guaranteed of getting their first choice, but in systems that use controlled choice, such as Lee County, Fla., and Cambridge, Mass., a large majority do.

"We've been looking at a number of plans from a number of districts across the country," board chairman Ron Margiotta said Wednesday. "He's very close to what we have in mind, to my understanding."

Here's some background on School choice that pays attention to making it safe for families to reveal their true preferences. Which brings me to where the Wake County school board can look for advice. 

One of the world's experts on the design of school choice systems is Atila Abdulkadiroglu, who is a professor at Duke, in Raleigh NC, the largest city in Wake County. So he's on location.  Here is Atila's blog on school choice.

Here are my previous posts on Wake County: School choice in North Carolina, School choice gets contentious in Wake County, NC

Abandoned horses not headed for foreign tables

Speaking of the pony express, Activists Keep Nev. Horses From Going to Slaughter
"With the financial backing of the wife of oil tycoon T. Boone Pickens and others, activists on Saturday purchased almost all 174 horses up for sale at a state-sanctioned auction in Nevada to keep the horses from going to the slaughterhouse.

"Stephanie Hoefener of the Lancaster, Calif.-based Livesavers Wild Horse Rescue group said activists purchased 172 horses for $31,415. The other two horses were acquired by private individuals for their personal use, she said.
...
"The horses were rounded up by the U.S. Bureau of Land Management last month near the Nevada-Utah line and turned over to the Nevada Department of Agriculture for disposal.

"Agriculture department officials acknowledge the stray horses could have wound up at slaughterhouses because they did not have the federal protections afforded to wild-roaming horses.
"The horses are believed to be strays or descendants of horses abandoned by private owners over the years in Pilot Valley north of West Wendover.

''For advocacy groups to step up to the plate and make a financial commitment like this to save the horses, we think this is a wonderful thing,'' Nevada Department of Agriculture spokesman Ed Foster said.

"Jill Starr, president of Lifesavers, said the purchase of the horses at the Fallon auction was made possible by the financial backing of Madeleine Pickens and other donors.

"Starr said high bidders of such horses usually are representatives of slaughterhouses in Mexico and Canada. The meat of the horses is processed for sale in Europe and Asia, where it fetches as much as $25 a pound, she added. "

For previous posts on the American repugnance for the use of horse meat for human consumption, as compared to the high prices it fetches overseas, see here.

Express mail 1.0

The Pony Rides Again (and again)
" The heroic, nearly 2,000-mile delivery of mail across the country hemorrhaged money, from the first day a rider saddled up until the click of the transcontinental telegraph shut it down 78 weeks later. "

Matching Marine officers to MOS

A reader writes:
"Dear Al,

I was a grad student a few years ago in your econ 2010a segment.

I came across a market design problem recently that I thought you might find interesting.  My brother is a Marine officer and is approaching the point when he gets matched to his "Military Occupational Specialty"-his future job (infantry, engineering, logistics etc).  As in matching medical residents, upcoming officers provide a ranking of their preferences.  Then the Marine administration ranks all the upcoming candidates on the basis of their performance in basic training (their overall average grade in "military skills, leadership, and academics").

The matching process is as follows: in a class of 100 officers, the officer ranked #1 gets his first choice, the 33rd ranked officer gets his first choice, then the 67th ranked officer gets his first choice.  Then the #2 ranked guy gets his top choice of the remaining jobs, then 34th, 68th, 3rd, 35th, 69th etc.

The intended purpose is clearly to ensure that there is an even distribution of "quality" in all specialties (you don't want all the best officers doing infantry (highest prestige) and all the worst officers managing logistics or supply).  (Actually this seems like a good idea for doctors too.)  However, the mechanism is clearly not incentive compatible-the 32nd ranked guy tries to fail his last tests to drop in rank to 33...

More details are here: http://www.dbdriven.net/mymos/All_MOS_Assignment_Process.asp.  I also believe that the Army and other branches use similar systems.

Anyway, perhaps you've already seen this. And perhaps the Marines are totally uninterested in changing a "tried and true" system. But it sounded like an interesting question on a socially important topic.

Best,

A.L.

Misc. repugnant transactions

A transaction is repugnant if some people don't want other people to do it. Here are some recent developments:

International Space Station sex ban : "Commanders do not allow sexual intercourse on the International Space Station, it has been disclosed"

The journal of the American Enterprise Institute has an article by a father-daughter kidney recipient and kidney donor called Our Deeply Unethical National Organ Policy. It argues in favor of compensating organ donors. It ends with this list of further readings on the subject:
"FURTHER READING: Gershowitz earlier offered, with Stephen Porter and Stephen Fuller, “A Stimulus That Would Work.” Dr. Sally Satel discussed “The National Kidney Foundation’s Bizarre Logic” against rewarding kidney donors, and “The Limits of Bioethics.” Satel lauded Israel’s steps to solve its organ shortage in “Kidney Mitzvah,” and just published a book on compensating kidney donors: When Altruism Isn’t Enough."


Argentina Approves Gay Marriage, in a First for Region July 15, 201 BUENOS AIRES — Argentina’s Senate narrowly approved a law early on Thursday authorizing same-sex marriages, making Argentina the first country in Latin America to allow gay couples to wed.

"After nearly 15 hours of debate, the Senate voted 33 to 27 in favor of the measure, which was sponsored by the government of President Cristina Fernández de Kirchner. For weeks, she waged a bitter war of words with the Roman Catholic Churchover the issue, saying that it would be a “terrible distortion of democracy” to deny gay couples the right to wed and that it was time for religious leaders to recognize how much more liberal and less discriminatory the nation’s social mores had become.

"In its race to derail the change, the church organized large protests involving tens of thousands of opponents of the measure, with Cardinal Jorge Bergoglio, the archbishop of Buenos Aires, calling the bill a “destructive attack on God’s plan.”

"Portugal and Iceland also legalized gay marriage this year, adding to the small but steadily expanding list of nations, most of them in Europe, to do so."

Vatican Revises Abuse Process, but Causes Stir July 15, 2010 VATICAN CITY — "The Vatican issued revisions to its internal laws on Thursday making it easier to discipline sex-abuser priests, but caused confusion by also stating that ordaining women as priests was as grave an offense as pedophilia."

School choice gets contentious in Wake County, NC

19 arrested as protesters claim school plan would resegregate system
"Police in Raleigh, North Carolina, arrested 19 people at a rancorous school board meeting Tuesday afternoon where protesters accused the Wake County School Board of adopting a plan that will resegregate the school system.
The Wake County School School Board voted in March to stop the decade-long practice of socio-economic school assignment and assign students to their neighborhood schools. The system plans to transition into the new practice in the next 15 months."

The story includes a video of the arrests, that makes me think that the school board meetings I've been to haven't really been so bad...

My previous posts on Wake County schools are
Blog on school choice by Atila Abdulkadiroglu and School choice in North Carolina

HT: Parag Pathak

Me and market design, in Forbes

Susan Adams in the August Forbes magazine (but online now) has a nice article about me and market design called (maybe for search engine reasons)" Un-Freakonomics: A Harvard professor uses economics to save lives, assign doctors and get kids into the right high school."

Here's the sentence I liked best:
"Leaning over a cup of Turkish coffee at a cafe across the Charles River from his messy journal-strewn corner office, he bends over backward to give credit to his younger protégés, students and coauthors. "Market design is a team sport," he insists."

If you want to see me bend over backwards while leaning over a cup of coffee, we'll have to have a cup of coffee:) But seriously, Ms. Adams got that part very right--lots of people have to do lots of things before a new marketplace is designed, adopted, and implemented. I'm very lucky in my colleagues.

The article title might suggest I have some sort of quarrel with Freakonomics, but that's not the case, although my work is very different. I recall reading Freakonomics and being full of admiration for the way it brought Steve Levitt's work to a general audience. I wouldn't mind doing that someday with market design, and maybe Ms. Adam's generous article will be a step towards making market design known to a wider public.

Read more »

F.C.C. Indecency Policy Rejected on Appeal

The NY Times reports the story: A federal appeals court struck down a Federal Communications Commission policy on indecency Tuesday, saying that regulations barring the use of “fleeting expletives” on radio and television violated the First Amendment because they were vague and could inhibit free speech.

"The decision, which many constitutional scholars expect to be appealed to the Supreme Court, stems from a challenge by Fox, CBS and other broadcasters to the F.C.C.’s decision in 2004 to begin enforcing a stricter standard of what kind of language is allowed on free, over-the-air television.

"The stricter policy followed several incidents that drew widespread public complaint, including Janet Jackson’s breast-baring episode at the 2004 Super Bowl and repeated instances of profanity by celebrities, including Cher, Paris Hilton and Bono, during the live broadcasts of awards programs. The Janet Jackson incident did not involve speech but it drew wide public outrage that spurred a crackdown by the F.C.C.

"In a unanimous three-judge decision, the Court of Appeals for the Second Circuit in New York said that the F.C.C.’s current policy created “a chilling effect that goes far beyond the fleeting expletives at issue here” because it left broadcasters without a reliable guide to what the commission would find offensive.

"The appeals court emphasized that it was not precluding federal regulation of broadcast standards. “We do not suggest that the F.C.C. could not create a constitutional policy,” the court said. “We hold only that the F.C.C.’s current policy fails constitutional scrutiny.” "

Here's my earlier post on the case: Fleeting expletives and wardrobe malfunctions: FCC vs Fox Television and CBS

Kidney exchange story at NEPKE

Market design is full of both frustration and satisfaction. Kidney exchange provides an unusual amount of each. Sometimes the satisfactions come in unexpected ways. Below is an email I received yesterday, whose author gave me permission to share it here, along with the photo.

"Dear Dr. Roth,

I want to thank you for your role in establishing the New England Program for Kidney Exchange. On July 8 my husband Bryan, in a 3-way swap with donor/ recipient pairs at Hopkins, RIH/ Brown and Dartmouth, received his new kidney after years of failing health. He is already feeling remarkably better, and his new kidney is functioning well.

Here is a photo of our 3-year-old, Lincoln, and 3-month-old, Haven, thanking Bryan's brother for donating his kidney to a stranger at Hopkins so Bryan could receive one from Dartmouth. I can imagine that theoretical academic work can lack a human face at times, so I wanted to assure you that your work is truly changing lives. I can't thank you enough for giving my boys their Daddy back.

Yours,
Katie Silberman
Providence"

Read more »

Market design in Australia?

The Australian prime minister Julia Gillard makes a speech in which she refers to "market design." (I can't tell exactly what that means in Australian...). The story, in The Australian today, is headlined Gillard banks on Per Capita think tank.

"In her speech to Per Capita last year, she said the approach she had taken to education would provide the template for further work on policy design, innovation, research and evaluation.

"This included starting with the needs of students and focusing on the performance of institutions, rather than allowing the focus of policy to rest only on "systems, structures and sectoral concerns".

"She said this came with an emphasis on equity for the disadvantaged, a preoccupation with transparency and a concern with "market design".

"The idea of "market design" is a key theme for Per Capita. Governments have always had a role in setting the rules of conduct for markets through trade practices. Per Capita argues that with due government guidance, markets can perform a powerful role in delivering human services, such as the jobs network.

"Gillard returned to market design in her speech to the National Press Club on economic policy last week.

"As far as I am concerned, there is no inherent superiority in a public sector or a private sector provider, certainly not on ideological grounds. The challenge is not whether to combine public and private resources in these essential sectors, but how best to do it," she said. "

Update: Joshua Gans tells me that "market design" means the same thing in Australia that it does in Boston, and he points me to a talk on the subject he gave to the thinktank in question: Emerging Concepts in Market Design. (And here's Joshua's post on the subject today, to close the loop:) What is market design anyway?

Misc. kidney exchanges and chains

At the University of Wisconsin hospital, a non-directed donor chain involving four donors and four recipients was completed in a day: At UW Hospital, four kidney transplants in one day and eight people are connected forever


Here's a 21 minute video interview of Dr. Matthew Cooper at the University of Maryland Medical Center in Baltimore, about a 4 transplant non-directed donor kidney exchange chain conducted there over two days. Among the logistical issues he mentions (e.g. 8 operating room teams) are those involving protecting the privacy of all the donors and recipients (around minute 3:45). And (around 9:15, and not making any specific comparisons to other hospitals) "We take no shortcuts at the University of Maryland," he says. Here is another short video, with some OR footage. More videos here from UMMC.


Here's a 4 minute video, "United by their gifts," about the meeting of the donors and recipients in the three way NEPKE exchange I posted about earlier (Kidney exchange at NEPKE ).


There have been some delays in starting a national kidney exchange program in Australia: Waiting for Kidney eXchange "One of the driving forces behind the exchange program is Professor Paolo Ferrari. He helped introduce it in Western Australia in 2007.
"We really hope it can be rolled out nationally before an election is called," he said.
"Otherwise it will be pushed back months."
A spokeswoman for the Organ and Tissue Donation Authority said the exchange program was expected to begin in Australian hospitals in August or September.
"The first step will be to enrol potential participants in the program, followed by the clinical process of matching donors and recipients, followed by the surgical processes," she said.
The spokeswoman said all states and territories had now considered the detail of the program.
"This process, through senior medical representatives, was completed last week, paving the way for health ministers to be briefed during July."
It took the UK three years to set up its kidney exchange program. "

Signaling preferences in matching markets

Preference Signaling in Matching Markets, by Peter Coles, Alexey Kushnir, and Muriel Niederle, NBER Working Paper No. 16185, July 2010. (Here's an ungated version.)

"Abstract: Many labor markets share three stylized facts: employers cannot give full attention to all candidates, candidates are ready to provide information about their preferences for particular employers, and employers value and are prepared to act on this information. In this paper we study how a signaling mechanism, where each worker can send a signal of interest to one employer, facilitates matches in such markets. We find that introducing a signaling mechanism increases the welfare of workers and the number of matches, while the change in firm welfare is ambiguous. A signaling mechanism adds the most value for balanced markets."

Two of the three authors of this paper are on the AEA job market committee that instituted the AEA's job market signaling mechanism. This new working paper brings some theory to the party.

See also

Peter Coles, John Cawley, Phillip B. Levine, Muriel Niederle, Alvin E. Roth, and John J. Siegfried , " The Job Market for New Economists: A Market Design Perspective," revised April 6, 2010, forthcoming in Journal of Economic Perspectives, Summer 2010.

marketdesigner.blogspot.xxx

Sex domain .xxx approved by regulators .
"ICANN, the Internet Corporation of Assigned Names and Numbers, which is responsible for overseeing the creation and distribution of web addresses, finally gave the go-ahead for the special .xxx domain name at a meeting in Brussels.

The adult entertainment industry has long campaigned in favour of a special .xxx suffix, similar to the .com and .co.uk domain names used by other companies."

Polyandry

Polyandry is much less common in the world than the other form of polygamy, polygyny, in which a man has two or more wives. In polyandrous households, one wife has two or more husbands. It was a form of plural marriage in resource poor regions.

Now, the NY Times reports, One Bride for 2 Brothers: A Custom Fades in India

In the remote villages of this Himalayan valley, polyandry, the practice of multiple men marrying one wife, was for centuries a practical solution to a set of geographic, economic and meteorological problems.
"People here survived off small farms hewed from the mountainsides at an altitude of 11,000 feet, and dividing property among several sons would leave each with too little land to feed a family. A harsh mountain winter ends the short planting season abruptly. The margin between starvation and survival is slender."...

"Polyandry has been practiced here for centuries, but in a single generation it has all but vanished. "...

"Polyandry has never been common in India, but pockets have persisted, especially among the Hindu and Buddhist communities of the Himalayas, where India abuts Tibet."

David Blackwell

David H. Blackwell dies at 91; pioneering statistician at Howard and Berkeley

"David H. Blackwell, 91, who rose from poverty in Southern Illinois to become one of the country's most prominent statisticians and the first African American to be elected to the National Academy of Sciences, died July 8 at a hospital in Berkeley, Calif., of complications from a stroke.

"Dr. Blackwell was also the first black tenured professor at the University of California at Berkeley, where he became chairman of the statistics department. ...

"While in Washington, he became interested in statistics after hearing a lecture by Agriculture Department statistician Meyer A. Girshick. After Dr. Blackwell challenged one of Girshick's assertions, the two met and became friends and colleagues.

"They wrote a 1954 book, "The Theory of Games and Statistical Decisions." It established them as leaders in the burgeoning field of game theory, which uses mathematics to understand winning strategies in situations that can be applied to economics, biology, engineering, political science and international relations. "

Consolidation and competition among economics jobs aggregators

At VoxEu, there's an announcement today (July 16) of a new service and a combining of forces: Introducing a free database of nearly all jobs for PhD economists by Raphael Auer and Richard Baldwin, founders of walras.org and Vox respectively.

They write:

"To help grow the next generation of economists, VoxEU.org has teamed with walras.org to form the world’s largest database of job openings for PhD economists. In addition to this comprehensive database of nearly all job openings for PhDs in economics and related fields, our partner walras.org also offers a free online application system allowing the exchange of all application documents and reference letters."

It looks like this puts them in pretty direct competition with the combination of Econjobmarket.org with the European Economic Association. And they are both competing with software providers who deal directly with the HR departments of universities and provide university-specific web sites for handling the information flow of job applications. (The AEA's Job Openings for Economists doesn't propose to handle the application process, but of course it is another big aggregator of job ads.)

We anticipated some of this in our forthcoming paper

Peter Coles, John Cawley, Phillip B. Levine, Muriel Niederle, Alvin E. Roth, and John J. Siegfried , " The Job Market for New Economists: A Market Design Perspective," revised April 6, 2010, forthcoming in Journal of Economic Perspectives, Summer 2010.

In that paper we wrote

"Two kinds of web applications have a presence in the market. Some departments are in institutions that use a university-wide platform, usually purchased commercially and then operated by the Human Resources department. Such university-specific systems impose high costs on applicants and references because they require individual uploading for each application and letter of reference.

"Other employers use third-party services such as EconJobMarket.org, AcademicJobsOnline.org (run by Duke’s Math Department, offering services to all sorts of departments), and others such as Academic Careers Online (http://www.academiccareers-job.com/), Economist Jobs (http://www.econ-jobs.com/), EconCareers (http://www.econcareers.com/), and LiberalArtsFacultyJobs.com. The job listing aggregator walras.org may also start such a service. The website of EconJobMarket.org (accessed March 1, 2010) indicates some consolidation: their service has been merged with that of the European Economic Association and has been endorsed by other economics organizations."

Dov Samet on marrying well

Dubi Samet has a paper on stable marriage, explaining why you might have married as well as you did, and explaining how, when there is substantial agreement on rankings, you and your spouse can't have done too differently well.

(I conclude that if, like me, you "married up" it is because your spouse has contrarian tastes.)

The paper is "Matching of like rank and the size of the core in the marriage problem" by Dov Samet

"Abstract: When men and women are objectively ranked in a marriage problem, say by beauty, then pairing individuals of equal rank is the only stable matching. We generalize this observation by providing bounds on the size of the rank gap between mates in a stable matchings in terms of the size of the ranking sets. Using a metric on the set of matchings, we provide bounds on the diameter of the core---the set of stable matchings---in terms of the size of the ranking sets and in terms of the size of the rank gap. We conclude that when the set of rankings is small, so are the core and the rank gap in stable matchings."