Friday, June 23, 2023

2023 Chinese Economists Society Annual Conference, June 24-25, 2023

I'll be speaking via zoom at 6:40pm this evening in California/tomorrow morning in China, June 24, 9:40-10:40am ) at the 

2023 Chinese Economists Society Annual Conference,  June 24-25, 2023 at Zhongnan University of Economics and Law, Wuhan.

"The conference includes invited keynote speeches, invited speakers sessions and panels, and parallel sessions. We are also planning for Pre-Conference events which will be conducted in Chinese and are more geared toward policy.

Confirmed keynote speakers include:

Joshua Angrist, 2021 Nobel Memorial Prize Winner in Economic Sciences. Ford Professor of Economics at MIT.

Justin Yifu Lin, Dean of Institute of New Structural Economics, Dean of Institute of South-South Cooperation and Development and Professor and Honorary Dean of National School of Development at Peking University.

Eric Maskin, 2007 Nobel Memorial Prize Winner in Economic Sciences. Professor at Harvard University of Economics and Mathematics. Albert O. Hirschman Professor of Social Science at the Institute for Advanced Study.

Al Roth, 2012 Nobel Memorial Prize Winner in Economic Sciences. Craig and Susan McCaw Professor of Economics at Stanford University, and the Gund Professor of Economics and Business Administration Emeritus at Harvard University.

 Update:  My talk title is "Economists as Engineers: How game theory led to practical market design."

Here's a sharable zoom link: . https://cornell.zoom.us/j/99038838324?pwd=aU9jRnpxV2R1VDk1RGp1bnRYdjZmUT09

    Passcode: 029136 

Thursday, June 22, 2023

Leo Hurwicz (1917-2008), biography

 Here's a web site devoted to the biography of Leo Hurwicz, by his son Michael: Leonid Hurwicz: Intelligent Designer

Wednesday, June 21, 2023

Incentive auctions for water rights

 Here's a press release from Auctionomics, the consulting firm run by Paul Milgrom and his business partner Silvia Console Battilana. They propose to repurpose water rights in a way that may resemble the recent incentive auctions for repurposing radio spectrum.

From Lawsuits to Solutions: Auctionomics Is Harnessing Efficient Market Design and Deep Tech for a Litigation-Free Solution to the Water Crisis by Auctionomics 

"Earlier this year, Paul co-hosted a conference at Stanford University attended by a group of economists, lawyers, and water experts. The group developed a proposal for a novel policy to fix the Colorado River crisis: the U.S. should redefine and buy back existing water rights, just as it did for misallocated rights to radio airwaves.

Auctionomics led the development of the FCC's Broadband Incentive Auction, converting TV licenses to new valuable uses. The current issues with water rights are similar to those of the radio spectrum, where existing rights holders with solid legal standing were hesitant to change the status quo, despite the clear misallocation of resources.

However, Auctionomics successfully addressed the problem with its innovative auction design, facilitating next-generation telecommunications and raising $19.8 billion while safeguarding existing broadcasters.

The Colorado River proposal aims to address deficiencies in the current water rights allocation system. The existing system hinders mutually beneficial trades between users and prohibits water banking - a means to enable farmers or cities manage current water use more efficiently, leaving more in reservoirs for future dry periods.

While there are historical reasons for these limitations - the uses of river water are diverse, interconnected, and poorly measured. Modifying them can result in severe consequences in a system that guarantees inefficiency and overconsumption. However, the same model employed to redistribute broadband spectrum can incentivize water rights holders to use their water more efficiently.

Auctionomics aims to adapt this model to the Colorado River with practical steps involving a hydrological survey, voluntary redefinition of water rights, and purchasing enough new rights from willing sellers to meet the necessary reductions in total consumption."

Tuesday, June 20, 2023

Equilibrium effects of pay transparency--by Zoe Cullen and Bobby Pakzad-Hurson

 From the current issue of Econometrica, the lowdown on pay transparency:

Cullen, Zoe B., and Bobak Pakzad‐Hurson. "Equilibrium effects of pay transparency." Econometrica 91, no. 3 (2023): 765-802.

"Abstract: The discourse around pay transparency has focused on partial equilibrium effects: how workers rectify pay inequities through informed renegotiation. We investigate how employers respond in equilibrium. We study a model of bargaining under two-sided incomplete information. Our model predicts that transparency reduces the individual bargaining power of workers, leading to lower average wages. A key insight is that employers credibly refuse to pay high wages to any one worker to avoid costly renegotiations with others. When workers have low individual bargaining power, pay transparency has a muted effect. We test our model with an event-study analysis of U.S. state-level laws protecting the right of private sector workers to communicate salary information with their coworkers. Consistent with our theoretical predictions, transparency laws empirically lead wages to decline by approximately 2%, and wage declines are smallest in magnitude when workers have low individual bargaining power."

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Earlier:

Wednesday, March 29, 2023

Monday, June 19, 2023

Stanford graduation--Alex Chan, Ph.D.

 Congratulations Dr. Chan.



Welcome to the club, Alex.

Sunday, June 18, 2023

Black market for mustard in Bogotá

 The NYT has the story:

Colombia’s Mustard Lovers Grow Desperate Amid Saucy Shortage of Dijon. Colombians are scrambling to find the beloved French condiment as a new health law removes it from shelves  by Genevieve Glatsky

"In Colombia, a new illicit product is on the rise. Desperate consumers are sneaking it in suitcases from abroad, hoarding it in their homes, paying outrageous prices online and lining up at clandestine locations to buy it.

"The contraband? Dijon mustard.

"A new health law intended to improve Colombians’ diets — which are heavy on meat and fried food — has led to the disappearance of a host of fare from market shelves, including the French delicacy of the condiment world.

...

"Inspired by a push by the Pan American Health Organization to address high rates of cardiovascular disease in the region, Colombia’s Health Ministry in 2020 imposed limits on high-sodium products, with the measure taking effect last November.

...

"Mustard must have less than 817 milligrams of sodium per 100 grams. A jar of Grey Poupon Dijon mustard has nearly three times that ratio."

Friday, June 16, 2023

Ehud Kalai, interviewed on the past and future of game theory

Here's a half-hour video interview of Ehud Kalai, by Sandeep Baliga, that touches on the history of game theory at Northwestern and elsewhere, his work on axiomatic models of bargaining, Econ-CS (and the Kalai Prize), and more.

 

Thursday, June 15, 2023

School choice and related matching algorithms in France, by Vincent Iehlé and Julien Jacqmin

Here's a recent paper that looks at the assignment of students to some of France's Grandes Ecoles, and draws some conclusions about the preferences for those schools.

SIGEM : analyse de la procédure d’affectation dans les grandes écoles de management,, Vincent Iehlé, Julien Jacqmin, Dans Revue économique 2023/2 (Vol. 74), pages 139 à 168 (SIGEM: analysis of the assignment procedure in major management schools)

"First, we list the expected properties of the assignments produced by the SIGEM. To do this we identify the SIGEM algorithm. It is quite standard in this type of environment since it is the “schools” version of the algorithm of Gale and Shapley [1962]. Based on this information, we show that assignments satisfy a stability property that is crucial in educational systems since it guarantees fair treatment of declared wishes and rankings. On the other hand, the use of this version of the algorithm of Gale and Shapley [1962], in opposition to the "candidate" version, raises two reservations concerning, on the one hand, the sub-optimality of the assignments from the point of view candidates and, on the other, the theoretical absence of simple strategies for candidates to play when submitting their wishes. This theoretical analysis of the algorithm is completed by a discussion on the specificities of the SIGEM procedure which can explain the formation of strategic behaviors. The second contribution concerns the use made of the results of this procedure in the case of SIGEM. We show how post-assignment data is used to determine the influential ranking of SIGEM from the so-called cross-dismissal matrix, itself based on the candidates' revealed preferences and their final assignments. The last contribution concerns the exploitation of a stylized fact which justifies the joint analysis of the algorithm and the SIGEM classification. The post-assignment data indeed reveal the existence of a hierarchy of schools that is very rigid and that achieves a consensus among students. This point is particularly interesting because it finally allows to have a finer look at the theoretical properties of the algorithm, the alignment of the preferences of the candidates tending to limit the impact of the negative effects associated with the use of the version "schools" of the algorithm of Gale and Shapley [1962]."

...

"Figure 2 presents for each school the number of ranked candidates and the number of wishes expressed for the school among these ranked. It seems to confirm the existence of these voluntary self-censorship strategies. In particular, we observe a significant loss for schools of average attractiveness (for example, AUDENCIA, NEOMA, SKEMA) which are more likely to be subject to both downward and upward truncation on the part of candidates ."



********

Recall also, 

Strategic Issues in the French Academic Job Market, by Guillaume Haeringer, Vincent Iehlé In Revue économique Volume 61, Issue 4, 2010, pages 697 to 721

Wednesday, June 14, 2023

Conference on Economic Design, University of Girona, June 15th-17th, 2023

 Conference on Economic Design, University of Girona,  June 15th-17th,  2023

Here is the program.

Plenary Sessions



June 15th, 19:00 Murat Sertel Lecture

Jordi Massó: On Strategy-proofness and the Salience of Single-peakedness in a Private Goods Allotment Problem

Chair: Salvador Barberà

June 16th, 17:00 Paul Kleindorfer Lecture

Alex Teytelboym: Duality in Market Design

Chair: Tommy Andersson

June 17th, 12:15 Leonid Hurwicz Lecture

Gabrielle Demange: Dual activities in a social network

Chair: Szilvia Pápai

June 15th, 16:00 Nedim Okan Young Scholar Prize

Zhuoqiong Chen: All-pay auctions with private signals about opponents’ values

Chair: Remzi Sanver

Introduction: Ayça Ebru Giritligil


Tuesday, June 13, 2023

Market design in major league baseball

 The rules of professional Major League Baseball are changing in an effort to make attending the games more popular.  Among the rule changes are rules requiring pitchers to pitch more quickly, including rules that prevent them from too often taking time to defend against base stealing.  It's a good example of a game within a game: the players have, over time, adjusted their behavior to win games under the existing rules. These behaviors, collectively, have caused games to slow down, take more time, and be less easily appreciated as exciting.  That in turn makes it hard for baseball to fill stadium seats.

The NY Times has the story: 

How New Rules Turned Back the Clock on Baseball, By Ben Blatt and Francesca ParisMay 24, 2023

"Baseball’s future may look a lot like its past.

"Nearly two months into the season, a series of rule changes — including the new pitch clock, enlarged bases and a ban on the infield shift — has translated into a game that evokes the 1980s more than the 2020s."

Monday, June 12, 2023

Data privacy concerns in the U.S. and Europe

A selection from many news stories that touch on data privacy concerns (in the U.S. about Tiktok, in Europe about Facebook...and about DNA):

From the NYT:

Driver’s Licenses, Addresses, Photos: Inside How TikTok Shares User Data. Employees of the Chinese-owned video app have regularly posted user information on a messaging and collaboration tool called Lark, according to internal documents.  By Sapna Maheshwari and Ryan Mac

"Alex Stamos, the director of Stanford University’s Internet Observatory and Facebook’s former chief information security officer, said securing user data across an organization was “the hardest technical project” for a social media company’s security team. TikTok’s problems, he added, are compounded by ByteDance’s ownership.

“Lark shows you that all the back-end processes are overseen by ByteDance,” he said. “TikTok is a thin veneer on ByteDance.”

********

********

From the WSJ:

Former ByteDance Executive Claims Chinese Communist Party Accessed TikTok’s Hong Kong User Data. Allegation is made in suit against TikTok parent company; ByteDance says it vigorously opposes the claim. By Georgia Wells

"A former executive at ByteDance, the parent company of the hit video-sharing app TikTok, alleges in a legal filing that a committee of China’s Communist Party members accessed the data of TikTok users in Hong Kong in 2018—a contention the company denies. 

"The former executive claims the committee members focused on civil rights activists and protesters in Hong Kong during that time and accessed TikTok data that included their network information, SIM card identifications and IP addresses, in an effort to identify and locate the users. The former executive of the Beijing-based company said the data also included the users’ communications on TikTok.

From the Guardian:

Revealed: the contentious tool US immigration uses to get your data from tech firms. Documents show Ice has sent Google, Meta and Twitter at least 500 administrative subpoenas for information on their users.  by Johana Bhuiyan

"The US Immigration and Customs Enforcement Agency (Ice) sent tech giants including Google, Twitter and Meta at least 500 administrative subpoenas demanding sensitive personal information of users, documents reviewed by the Guardian show.

"The practice highlights the vast amount of information Ice is trying to obtain without first showing probable cause. Administrative subpoenas are typically not court-certified, which means companies are not legally required to comply or respond until and unless a judge compels them to. The documents showed the firms handing over user information in some cases, although the full extent to which the companies complied is unclear."

**********

From the WSJ:

Meta Fined $1.3 Billion Over Data Transfers to U.S.  Decision places pressure on Washington to implement surveillance changes for Europe to allow Meta to keep the data spigot open.  By Sam Schechner

"Meta’s top privacy regulator in the EU said in its decision Monday that Facebook has for years illegally stored data about European users on its servers in the U.S., where it contends the information could be accessed by American spy agencies without sufficient means for users to appeal."

*********

From the Guardian:

NHS data breach: trusts shared patient details with Facebook without consent. Observer investigation reveals Meta Pixel tool passed on private details of web browsing on medical sites."by Shanti Das

"Records of information sent to the firm by NHS websites reveal it includes data which – when linked to an individual – could reveal personal medical details.

"It was collected from patients who visited hundreds of NHS webpages about HIV, self-harm, gender identity services, sexual health, cancer, children’s treatment and more.

...

"In one case, Buckinghamshire Healthcare NHS trust shared when a user viewed a patient handbook for HIV medication. The name of the drug and the NHS trust were sent to the company along with the user’s IP address and details of their Facebook user ID."

**********

From the NYT:

Your DNA Can Now Be Pulled From Thin Air. Privacy Experts Are Worried. Environmental DNA research has aided conservation, but scientists say its ability to glean information about human populations and individuals poses dangers.  By Elizabeth Anne Brown

"Forensic ethicists and legal scholars say the Florida team’s findings increase the urgency for comprehensive genetic privacy regulations. For researchers, it also highlights an imbalance in rules around such techniques in the United States — that it’s easier for law enforcement officials to deploy a half-baked new technology than it is for scientific researchers to get approval for studies to confirm that the system even works."

**********

From the LA Times:

Microsoft will pay $20 million to settle U.S. charges of illegally collecting children’s data

"Microsoft will pay a fine of $20 million to settle Federal Trade Commission charges that it illegally collected and retained the data of children who signed up to use its Xbox video game console.

"The agency charged that Microsoft gathered the data without notifying parents or obtaining their consent, and that it also illegally held on to the data. Those actions violated the Children’s Online Privacy Protection Act, the FTC stated."

Sunday, June 11, 2023

Digital data yields suspect in Idaho murders (NYT)

 The NYT has the story of how a wide ranging search of a large variety of digital data  led to an arrest of a suspect (whose trial hasn't yet begun):

Inside the Hunt for the Idaho Killer,” by Mike Baker, New York Times, June 10, 2023

"“Online shopping, car sales, carrying a cellphone, drives along city streets and amateur genealogy all played roles in an investigation that was solved, in the end, as much through technology as traditional sleuthing.

...

"A week after the killings, records show, investigators were on the lookout for a certain type of vehicle: Nissan Sentras from the model years 2019 to 2023. Quietly, they ran down details on thousands of such vehicles, including the owners’ addresses, license plate numbers and the color of each sedan.

"But further scrutiny of the video footage produced more clarity, and on Nov. 25 the police in Moscow asked law enforcement agencies to look for a different type of car with a similar shape: white Hyundai Elantras from the model years 2011 to 2013.

"Just across the state border, at Washington State University, campus police officers began looking through their records for Elantras registered there. 

...

"The hunt broadened as investigators vacuumed up more records and data. They had already sought cellphone data for all phones that pinged cell towers within a half-mile of the victims’ house from 3 a.m. to 5 a.m., according to search warrant filings. 

...

"after getting back data on [one of the victim]’s account on the Tinder dating app, detectives asked for details on 19 specific account-holders, including their locations, credit card information and any “private images, pictures or videos” associated with the accounts.

...

"Investigators were also working with a key piece of evidence: a Ka-Bar knife sheath, branded with a U.S. Marine Corps logo, that had been found next to two of the victims. They initially began looking for local stores that may have sold the weapon, and then fanned out.

"A request to Amazon sought the order histories of account holders who had purchased such knives. A follow-up request to eBay focused on a series of specific users, seeking their purchase histories. Some had connections to the area — including one in Idaho and two in Washington State...

...

"Forensic teams had examined the knife sheath and found DNA that did not belong to any of the inhabitants of the house. They ran the sample through the F.B.I.’s database, which contains millions of DNA profiles of past criminal offenders, but according to three people briefed on the case, they did not get a match.

"At that point, investigators decided to try genetic genealogy, a method that until now has been used primarily to solve cold cases, not active murder investigations.

...

"F.B.I. personnel ...{spent] days building out a family tree that began with a distant relative.

"By the morning of Dec. 19, records show, investigators had a name: Bryan Kohberger. He had a white Elantra. He was a student at a university eight miles from the murder scene.

...

"On Dec. 23, investigators sought and received Mr. Kohberger’s cellphone records. The results added more to their suspicions: His phone was moving around in the early morning hours of Nov. 13, but was disconnected from cell networks — perhaps turned off — in the two hours around when the killings occurred.

"Four days later, agents in Pennsylvania managed to retrieve some trash from Mr. Kohberger’s family residence, sending the material to the Idaho State Police forensic lab. Checking it against their original DNA profile, the lab was able to reach a game-changing conclusion: The DNA in the trash belonged to a close relative of whoever had left DNA on the knife sheath.

"Mr. Kohberger was arrested on Dec. 30."


Saturday, June 10, 2023

Canada to require health warnings on individual cigarettes

 The Washington Post has the story:

Canada to require health warnings on individual cigarettes  By Sarah Dadouch



"Beginning next year, cigarettes sold in Canada will bear one of six messages in English and French. They include “TOBACCO HARMS CHILDREN,” “POISON IN EVERY PUFF” and “SMOKING CAUSES IMPOTENCE.” Health Canada announced the regulation Wednesday for World No Tobacco Day.

“This bold step will make health warning messages virtually unavoidable,” mental health and addictions minister Carolyn Bennett said. With updated graphic images on cigarette packages, she said in a statement, the labels “will provide a real and startling reminder of the health consequences of smoking.”

...

"Around 48,000 people in Canada die as a result of tobacco use each year, according to Health Canada. That’s more than those who die as a result of alcohol, opioids, suicides, murders and traffic collisions combined."