Memorial service for Vic Fuchs

 Yesterday, at Etz Chayim Synagogue,  Palo Alto.

Here is my brief eulogy:

Vic was the patriarch of a clan, and a man of wide and old friendships. He was, by the way, also a brilliant, erudite, compassionate economist.

Emilie and I were among his new friends. In 2013 we bought a house down the hill from Vic, and held an open house; he came over, carrying his own chair-back, and was the life of the party.  In those days he used to reply to questions about how he was doing with a joke: “I’m in perfect health—my psychiatrist says it’s all in my body.”

That joke got less funny as his body continued to betray him, and after a while he stopped telling it.

When he joined us for dinner, he and Emilie would negotiate the menu. (He was a fussy eater, who liked his food very plain).

In 2016, when Vic joined us to watch one of the debates among Democratic primary candidates for president, he couldn’t contain himself when they discussed health care, and I gave him a lift home before the debate concluded, so he could write an op-ed. He was still in the game.

During Covid, he stopped leaving his house except to go to the doctor. As his mobility declined, our visits migrated from his patio, to the downstairs living room, and eventually up the half flight of stairs to his office.

Vic’s mind remained sharp. We were able to visit him until about a month before he passed away. He was worried about the world, but still eager to hear jokes, and to tell them.

He was a role model, and a pleasure to spend time with.  

Vic was a man of many parts, and his life was full of accomplishments, admirers, family and friends for whom his memory will be a blessing.

Sunday, September 17, 2023

Vic Fuchs (1924-2023)

Big Ideas: Auctions with Nobel Laureates Paul Milgrom and Robert Wilson

Ran Abramitzky interviews Bob Wilson and Paul Milgrom:

Thanksgiving cranberries (brought to you by the Ocean Spray cranberry cooperative)

 The WSJ has the story:

These People Are Responsible for the Cranberry Sauce You Love to Hate  By Ben Cohen

"Ocean Spray['s...] farmers are responsible for 65% of the world’s cranberries. It’s not a publicly traded company. It’s not a traditional private company, either. It’s a cooperative founded nearly a century ago and owned by roughly 700 families. 

...

“The mindset and attitude that we need to come up with something is the spirit of what farmers do,” Hayes said. 

"It’s not exactly Apple, but that kind of innovation is baked into the world’s most valuable cranberry business. Ocean Spray wouldn’t have $2 billion in annual sales if it hadn’t adapted and produced new ideas at several critical junctures in the past century.

...

"The cooperative was started in 1930 by “three maverick farmers,” as Ocean Spray calls its founders. One of those entrepreneurs was Marcus Urann, a lawyer who purchased a bog in Massachusetts and went looking for ways to preserve cranberries and sell them year-round. His experiments led him to come up with something: He invented cranberry sauce in a can. The market for canned products soon became so large, and the competition in the cranberry industry so fierce, that Urann came up with something else, banding together with two farmers to establish Ocean Spray. 

...

"The model for Ocean Spray, Dairy Farmers of America and Land O’Lakes became popular because of a 1922 federal law that exempts cooperatives from antitrust regulations, allowing farmers to pool their resources for scale and collective power."

Political leadership in NYC: Mayor Eric Adams on antisemitism

Elected officials with executive responsibilities have difficult jobs. The Mayor of NYC has to make sure that garbage is collected, that potholes are filled, that corruption is contained.  But political leaders also have an opportunity and a responsibility to address broader social problems, and from a distance I can appreciate that NYC Mayor Eric Adams is speaking out against hate, and not flinching from naming antisemitism as he sees it surge back into public view,

Remarks by Mayor Eric Adams | Central Synagogue | November 17, 2023

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Earlier (including the video of an earlier speech by Mayor Adams):

Sunday, October 15, 2023

Hamas, Gaza and American universities: more letters, and two speeches

Balance of violence: prison-based criminal cartels, the case of Brazil's PCC.

The vexed relationship between banned markets and black markets is perhaps nowhere clearer than when prison based gangs of convicted drug dealers are able to extend their empires outside of prisons. While national authorities are able to capture, convict and imprison gang leaders, those gangs retain the ability to organize violence not only inside prisons but outside of them, and hence operate national and international black markets as well.

The Guardian has the story:

How a Brazilian prison gang became an international criminal leviathan  by Tom Phillips

"The PCC – First Capital Command – arose in the country’s notoriously brutal penitentiaries 30 years ago but now controls a billion-dollar drug trade supplying much of Europe’s cocaine,

...

"For much of its 30-year existence the PCC has been considered a jailhouse fraternity, which recruited incarcerated “brothers” such as the Venezuelan by offering them protection within Brazil’s violent, overcrowded prisons. Created in August 1993, it grew into Brazil’s most feared criminal faction, conquering drug markets, smuggling routes, shantytowns and prisons across Brazil, including in far-flung corners of the Amazon. It also became a major player in other South American countries such as neighbouring Paraguay where the group has been blamed for multimillion-dollar armed robberies and bombings and targeted assassinations.

But over the past five years, investigators say the PCC – which the US now calls one of the world’s most powerful organized crime groups – has morphed into an even more formidable force after forging lucrative alliances with partners ranging from Bolivian cocaine producers to Italian mafiosi. Today, the group boasts tens of thousands of members and has a growing portfolio of interests, including illegal goldmines in the Amazon. It controls one of South America’s most important trafficking routes – linking Bolivia and Brazil to Europe and Africa – and is partly responsible for a tsunami of cocaine that has brought car bombings, assassinations and gunfights to parts of Europe.

...

"During the 1990s, the PCC tightened its grip on São Paulo’s prison system but largely flew under the radar until thousands of guards and visitors were captured during a massive 2001 uprising. Five years later the group again made headlines, bringing São Paulo to a virtual standstill with a wave of coordinated attacks on police that caused hundreds of deaths.

...

"Having dominated much of Brazil’s domestic drug market – and established a monopoly over São Paulo’s crime scene – Gakiya said the PCC began looking overseas in late 2016. Deals were struck with Italy’s most powerful mafia group, the ’Ndrangheta, as well as Serbian and Albanian mafias, and the PCC began shipping tonnes of cocaine from Brazilian ports to Europe.

...

"Marcola, 55, who is serving a 342-year prison sentence for murder, robbery and drug trafficking, is also not a man to be crossed. In late 2018, Gakiya decided to transfer him to a high-security federal prison after the discovery of an audacious multimillion-dollar plot to free him with the help of foreign mercenaries, helicopters and anti-aircraft guns. “I knew it might change my life but I also realized it needed doing,” the prosecutor said, admitting he did not consult his family first.

Gakiya was no stranger to death threats, but moving Marcola turned his life upside down. PCC leaders issued a “decree” calling for the prosecutor’s assassination, condemning Gakiya to a reclusive existence he compared to the life of Giovanni Falcone, the anti-mafia crusader assassinated in 1992. “I hope, of course, not to share the same fate as Falcone,” added Gakiya..."

Global kidney exchange between Denmark and U.S.

 Here's a news story from North Carolina, home of one of the patient-donor pairs in the U.S.-Denmark kidney exchange, organized by the Alliance for Paired Kidney Donation (APKD).

Worldwide kidney transplant chain saves lives in Raleigh, Denmark, Colorado. by: Maggie Newland

"RALEIGH, N.C. (WNCN) — When a Raleigh musician needed a kidney, a friend of a friend offered to donate hers. The offer led to a kidney transplant chain stretching from the Triangle all the way to Denmark.

...

"Meanwhile, across the ocean, in Denmark, friends Peter Wichmann and Morton Berktoft were dealing with a similar issue. Wichmann wanted to donate his kidney to Berktoft, but they didn’t match either.

"Then something called a paired kidney exchange ended up helping all of them.  

"“It’s actually a Nobel prize-winning algorithm,” explained Krista Sweeney with AKPD. “They put these pairs into our system… We’re able to identify the best matches for each pair.”

"In this case, Kovacic donated her kidney to someone in Colorado. Their loved one donated a kidney to Berktoft, who flew to the U.S. for the surgery along with Wichmann, who donated a kidney to Adamo.

...

"Three months after the surgeries the donors and recipients are all doing well and got a chance to talk to each other in a virtual meeting.

...

“Even though the paired exchange wasn’t our initial plan it worked out so great for six people,” said Kovacic. “And three people’s lives to be saved.”

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Earlier posts on Denmark-US exchange:

Monday, June 7, 2021

Help for Danish kidney-exchange pairs, from a private foundation (while waiting for the health care system to cover international exchange)

Sunday, June 6, 2021

Global kidney exchange with Denmark, in the U.S.

Scott Kominers on the history of matching, at Tsinghua, tomorrow

 CMSA/Tsinghua Math-Science Literature Lecture: Scott Kominers

"Beginning in Spring 2020, the CMSA began hosting a lecture series on literature in the mathematical sciences, with a focus on significant developments in mathematics that have influenced the discipline, and the lifetime accomplishments of significant scholars."

Will divorce become legal in the Philippines?

  The NYT has the story:

‘Just Like Medicine’: A New Push for Divorce in a Nation Where It’s Illegal.  A campaign in the Philippines that frames divorce as a basic human right is gaining momentum, despite systemic and religious barriers.  By Sui-Lee Wee

"Thousands of people like Ms. Nepomuceno are trapped in long-dead marriages in the Philippines, the only country in the world, other than the Vatican, where divorce remains illegal. 

...

"Partly because of their growing numbers and plight, attitudes in the country, where nearly 80 percent of the population is Catholic, have changed. Surveys show that half of Filipinos now support divorce. Even the president has signaled openness to the idea, and the Philippines is the closest it has ever been to legalizing divorce.

"But the issue is far from settled. The powerful Catholic Church has deemed pro-divorce activism to be “irrational advocacy.” Conservative lawmakers remain steadfast in their opposition.

"This has prompted some in the legalization camp to frame divorce as a basic human right, like access to health care or education.

...

"In recent months, a Senate committee approved a bill on divorce for the first time in more than 30 years. The bill is now awaiting a second reading in the Senate, which lawmakers say could happen next year.

...

"Divorce has a complicated history in the Philippines. During the Spanish colonial era, divorce was banned, but legal separation was allowed under narrow conditions. Under American occupation, it was made legal, but only on the grounds of adultery and concubinage. The Japanese, who occupied the Philippines during World War II, expanded the divorce law, allowing more grounds for people to seek divorce.

"That changed after the enactment of the country’s Civil Code in 1950. But Muslim citizens, who make up 5 percent of the population, are allowed to divorce, because in 1977, Ferdinand E. Marcos, the president at the time, signed legislation allowing it.

...

"A decade ago, when the Philippine Congress passed legislation that gave people access to contraception, the clergy held protests and threatened to excommunicate lawmakers for supporting the bill. This time, said Edcel Lagman, a congressman who has pushed for both issues, church officials have been less vocal in its opposition."

Report From a Multidisciplinary Symposium on the Future of Living Kidney Donor Transplantation

 How might we increase the number of lifesaving transplants from living kidney donors? Might we one day be able to reward donors? And what might we do until then, while we wait for something that will eventually replace human organ transplantation?  Here's the published account of last year's symposium.

Thomas G. Peters, John J. Fung, Janet Radcliffe-Richards, Sally Satel, Alvin E. Roth, Frank McCormick, Martha Gershun, Arthur J. Matas, John P. Roberts, Josh Morrison, Glenn M. Chertow, Laurie D. Lee, Philip J. Held, and Akinlolu Ojo, “Report From a Multidisciplinary Symposium on the Future of Living Kidney Donor Transplantation,” Progress in Transplantation  (forthcoming), Online first, Nov 15, 2023 https://journals.sagepub.com/doi/full/10.1177/15269248231212911  (pdf here).

Abstract: Virtually all clinicians agree that living donor renal transplantation is the optimal treatment for permanent loss of kidney function. Yet, living donor kidney transplantation has not grown in the United States for more than 2 decades. A virtual symposium gathered experts to examine this shortcoming and to stimulate and clarify issues salient to improving living donation. The ethical principles of rewarding kidney donors and the limits of altruism as the exclusive compelling stimulus for donation were emphasized. Concepts that donor incentives could save up to 40 000 lives annually and considerable taxpayer dollars were examined, and survey data confirmed voter support for donor compensation. Objections to rewarding donors were also presented. Living donor kidney exchanges and limited numbers of deceased donor kidneys were reviewed. Discussants found consensus that attempts to increase living donation should include removing artificial barriers in donor evaluation, expansion of living donor chains, affirming the safety of live kidney donation, and assurance that donors incur no expense. If the current legal and practice standards persist, living kidney donation will fail to achieve its true potential to save lives.

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Links to videos of the symposium presentations are here:

Friday, July 15, 2022

The Future of Living Donor Kidney Transplantation (videos)

Top trading cycles 'respect improvements' by rewarding agents whose endowments become more desirable

 Here's a wide-ranging paper that explores the way the Top Tradinig Cycles (TTC) algorithm 'respects improvements' by rewarding an agent whose endowment becomes more desirable.

Biró, Péter, Flip Klijn, Xenia Klimentova, and Ana Viana. "Shapley–Scarf Housing Markets: Respecting Improvement, Integer Programming, and Kidney Exchange." Mathematics of Operations Research (2023).

"Abstract: In a housing market of Shapley and Scarf, each agent is endowed with one indivisible object and has preferences over all objects. An allocation of the objects is in the (strong) core if there exists no (weakly) blocking coalition. We show that, for strict preferences, the unique strong core allocation “respects improvement”—if an agent’s object becomes more desirable for some other agents, then the agent’s allotment in the unique strong core allocation weakly improves. We extend this result to weak preferences for both the strong core (conditional on nonemptiness) and the set of competitive allocations (using probabilistic allocations and stochastic dominance). There are no counterparts of the latter two results in the two-sided matching literature. We provide examples to show how our results break down when there is a bound on the length of exchange cycles. Respecting improvements is an important property for applications of the housing markets model, such as kidney exchange: it incentivizes each patient to bring the best possible set of donors to the market. We conduct computer simulations using markets that resemble the pools of kidney exchange programs. We compare the game-theoretical solutions with current techniques (maximum size and maximum weight allocations) in terms of violations of the respecting improvement property. We find that game-theoretical solutions fare much better at respecting improvements even when exchange cycles are bounded, and they do so at a low efficiency cost. As a stepping stone for our simulations, we provide novel integer programming formulations for computing core, competitive, and strong core allocations."

Here is their literature review:

"The nonemptiness of the core is proved in Shapley and Scarf [47] by showing the balancedness of the corresponding nontransferable utility game and also in a constructive way by showing that David Gale’s famous top trading cycles (TTC) algorithm always yields competitive allocations. Roth and Postlewaite [40] later show that, for strict preferences, the TTC results in the unique strong core allocation, which coincides with the unique competitive allocation in this case. However, if preferences are not strict (i.e., ties are present), the strong core can be empty or contain more than one allocation, but the TTC still produces all competitive allocations. Wako [50] shows that the strong core is always a subset of the set of competitive allocations. Quint and Wako [39] provide an efficient algorithm for finding a strong core allocation whenever there exists one. Their work is further generalized and simplified by Cechlárová and Fleiner [19], who use graph models. Wako [52] shows that the set of competitive allocations coincides with the core based on an antisymmetric weak domination concept, which we refer to as Wako-core in this paper. This equivalence is key for our extension of the definition of competitive allocations to the case of bounded exchange cycles.

1.2.2. Respecting Improvement.

"For Gale and Shapley’s [23] college admissions model, Balinski and Sönmez [11] prove that SOSM respects improvement of student’s quality. Kominers [29] generalizes this result to more general settings. Balinski and Sönmez [11] also show that SOSM is the unique stable mechanism that respects improvement of student quality. Abdulkadiroğlu and Sönmez [3] propose and discuss the use of TTC in a model of school choice, which is closely related to the college admissions model. Abdulkadiroğlu and Che [2] state and Hatfield et al. [25] formally prove that the TTC mechanism respects improvement of student quality.

"Hatfield et al. [25] also focus on the other side of the market and study the existence of mechanisms that respect improvement of a college’s quality. The fact that colleges can match with multiple students leads to a strong impossibility result: they prove that there is no stable or Pareto-efficient mechanism that respects improvement of a college’s quality. In particular, the (Pareto-efficient) TTC mechanism does not respect improvement of a college’s quality.

"In the context of KEPs with pairwise exchanges, the incentives for bringing an additional donor to the exchange pool was first studied by Roth et al. [42]. In the model of housing markets their donor-monotonicity property boils down to the respecting improvement property. They show that so-called priority mechanisms are donor-monotonic if each agent’s preferences are dichotomous, that is, the agent is indifferent between all acceptable donors. However, if agents have nondichotomous preferences, then any mechanism that maximizes the number of pairwise exchanges (so, in particular, any priority mechanism) does not respect improvement. This can be easily seen by means of Example 4 in Section 3.3.

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See also

The core of housing markets from an agent’s perspective: Is it worth sprucing up your home?  by Ildiko Schlotter, , Peter Biro, and Tamas Fleiner

Abstract. We study housing markets as introduced by Shapley and Scarf (1974). We investigate the computational complexity of various questions regarding the situation of an agent a in a housing market H: we show that it is NP-hard to find an allocation in the core of H where (i) a receives a certain house, (ii) a does not receive a certain house, or (iii) a receives a house other than her own. We prove that the core of housing markets respects improvement in the following sense: given an allocation in the core of H where agent a receives a house h, if the value of the house owned by a increases, then the resulting housing market admits an allocation in its core in which a receives either h or a house that a prefers to h; moreover, such an allocation can be found efficiently. We further show an analogous result in the Stable Roommates setting by proving that stable matchings in a one-sided market also respect improvement.

2023 EINSTEIN FOUNDATION AWARD FOR PROMOTING QUALITY IN RESEARCH

 Here's the press release from the Einstein Foundation in Berlin:

THE WINNERS OF THE 2023 EINSTEIN FOUNDATION AWARD FOR PROMOTING QUALITY IN RESEARCH

"THE EINSTEIN FOUNDATION BERLIN IS TO HONOR BELGIAN BIOINFORMATICIAN YVES MOREAU, THE BERKELEY INITIATIVE FOR TRANSPARENCY IN THE SOCIAL SCIENCES, AND THE RESPONSIBLE RESEARCH ASSESSMENT INITIATIVE WITH THIS YEAR’S EINSTEIN FOUNDATION AWARD FOR PROMOTING QUALITY IN RESEARCH 2023. 

The recipient of the Individual Award is Yves Moreau from the Katholieke Universiteit Leuven. Moreau ranks among the most ardent advocates for ethical standards in the utilization of human DNA data in the age of artificial intelligence and big data. He designs algorithms that protect personal privacy during the analysis of genetic data. This year’s Institutional Award recognizes the work of the Berkeley Initiative for Transparency in the Social Sciences (BITSS), which advocates for rigor, transparency, and reproducibility in social scientific research. The Institute achieves this through establishing open science practices, developing appropriate infrastructure, and conducting meta-research. The 2023 Early Career Award goes to the Responsible Research Assessment Initiative headed by Anne Gärtner (Dresden University of Technology). The project aims to identify, test, and establish novel criteria for the assessment of researchers and their output. Moving away from quantity of output and other unsuitable metrics, it will foreground quality of research by taking into account factors such as transparency, robustness, innovation, and cooperation. 

...

"Jury member Michel Cosnard, computer scientist at the Université Nice-Sophia-Antipolis, believes that Yves Moreau is highly deserving of the award, which recognizes his unwavering dedication on both professional and ethical fronts. “Moreau links deep research in DNA analysis and artificial intelligence with ethics, integrity, and human rights. His work and achievements serve as a cornerstone to help us confront the difficult social questions that arise from rapid technological developments.” 

"Fellow jury member and Stanford University economist Alvin Roth firmly endorses the chosen winner of the Institutional Award: “The Berkeley Initiative for Transparency in the Social Sciences plays an active, creative role in the ‘credibility revolution’ in science by promoting careful experimentation, and supporting efforts to make replication and verification commonplace.” 

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The two previous awards

Monday, December 5, 2022

The 2022 Einstein Foundation Awards

Thursday, November 25, 2021

Promoting Quality in Research: the inaugural Einstein Foundation Awards, 2021

This was my final year on the prize jury.

How have real estate agents kept commissions high? More on steering, by Barry, Fried, and Hatfield,

 Here's a paper that offers one channel for how residential real estate commissions have been maintained at a more or less constant percentage of house prices, while those prices have risen and while information about houses for sale has become more readily available.

Barry, Jordan and Fried, Will and Hatfield, John William, Et Tu, Agent? Commission-Based Steering in Residential Real Estate (October 9, 2023). Available at SSRN: https://ssrn.com/abstract=4596391 or http://dx.doi.org/10.2139/ssrn.4596391

Abstract: "Real estate agents are required to serve their clients’ best interests. However, policymakers have long suspected that buyer agents steer their clients away from properties that offer low buyer agent commissions. They are particularly concerned that steering is a key reason why agent commissions have remained high in the internet era, even as commissions in other industries have plummeted. Analyzing a new dataset, we provide the first systematic, nationwide evidence that buyer agents do in fact steer clients away from properties that offer low buyer agent commissions.

"Buyer agents play an important role in helping their clients find homes. We hypothesize that buyer agents may skip over low-commission homes in favor of high-commission homes when choosing which listings to forward to their clients. If so, low-commission listings would tend to garner fewer page views on public real estate portals like Zillow and Redfin. To test this theory, we track the number of page views that individual listings receive on Redfin. All else being equal, we find that low-commission listings receive fewer page views. This effect is most pronounced for listings with the lowest commissions, but even listings with commissions that are slightly below the going rate receive significantly fewer page views.

"We also find evidence that this steering has meaningful economic consequences. Homes with lower buyer agent commissions take longer to sell and are less likely to sell at all. Again, these effects are largest for the listings with the lowest commissions, which take 33% longer to sell nationwide. In a typical geographic market, our best estimate is that these lowest-commission properties face a 75% greater risk of not selling at all. Here too, even commissions that are slightly below the going rate are associated with longer sale times and higher risk of a failed sale.

"We explore the implications of our findings with respect to both the $52 trillion U.S. housing market and the ongoing scholarly debates regarding agency costs and Collaborative Industries."

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Earlier:

Thursday, November 2, 2023

Jury Finds Realtors Conspired to Keep Commissions High

More on Realtor's contracts and practices, and the recent court decision

 Here are some further articles with some details about the recent court decision that real estate contracts are anticompetitive. Both are from the Washington Post:

Jury awards $1.8B in realty case that could shake up brokerage commissions. A Kansas City jury unanimously found that the National Association of Realtors and other organizations conspired to artificially inflate home sale commissions   By Julian Mark 

"The plaintiffs pointed to an NAR rule that required sellers to make a nonnegotiable commission offer before listing homes on the property database, the Multiple Listing Service, or MLS, which feeds widely used real estate sites including Zillow. That commission hovers around 5 to 6 percent of the sale price and is paid by the home seller to the sellers’ agent and the buyers’ agent. If sellers do not agree to the commission terms, they go virtually unseen in the market, Ketchmark said.

"The rule has stifled competition and has resulted in higher prices, the plaintiffs alleged. They argued that if the rule were not in place, buyers would pay commissions to their own agents while buyers’ agents would have to compete by offering lower rates. The lawsuit pointed to countries whose total real estate commissions average 1 to 3 percent, such as the United Kingdom, Singapore, the Netherlands, Australia and Belgium.

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Real estate industry trembles over commissions on home sales. After jurors recently found that there was a scheme to inflate commissions, experts say changes could shake up the business  By Julian Mark

"The judge overseeing the case has the power to issue an injunction that could break up the century-old “bundled” or “cooperative” commissions system, in which sellers’ and buyers’ agents split a commission that typically ranges between 5 and 6 percent of the home sale price. 

...

"The cooperative compensation structure was established in 1913, when National Association of Real Estate Exchanges, the precursor to NAR, said its member agents should share commissions with agents that produced buyers, according to a 2015 study by economists Panle Jia Barwick and Maisy Wong. The commissions rate hit 5 percent in 1940 and has remained virtually unchanged ever since, according to the study.

"Commissions work differently in countries such as the United Kingdom, where sellers pay typically less than 2 percent, and buyers pay their own agents, according to the study."

######

And here's the cited paper:

Barwick, Panle Jia, Parag A. Pathak, and Maisy Wong. 2017. "Conflicts of Interest and Steering in Residential Brokerage." American Economic Journal: Applied Economics, 9 (3): 191-222.

Abstract: This paper documents uniformity in real estate commission rates offered to buyers' agents using 653,475 residential listings in eastern Massachusetts from 1998–2011. Properties listed with lower commission rates experience less favorable transaction outcomes: they are 5 percent less likely to sell and take 12 percent longer to sell. These adverse outcomes reflect decreased willingness of buyers' agents to intermediate low commission properties (steering), rather than heterogeneous seller preferences or reduced effort of listing agents. Offices with large market shares purchase a disproportionately small fraction of low commission properties. The negative outcomes for low commissions provide empirical support for regulatory concerns over steering.

Misunderstandings: False Beliefs in Communication by Georg Weizsäcker

 Georg Weizsäcker  has a new book, just out from Open Book Publishers. You can read online or download it for free, or purchase a printed copy.

Misunderstandings: False Beliefs in Communication, by Georg Weizsäcker 

"What do we expect when we say something to someone, and what do they expect when they hear it? When is a conversation successful? The book considers a wide set of two-person conversations, and a bit of game theory, to show how conversational statements and their interpretations are governed by beliefs. Thinking about beliefs is suitable for communication analysis because beliefs are well-defined and measurable, allowing to differentiate between successful understandings and their less successful counterparts: misunderstandings.

"The book describes the theoretical framework and empirical measurements of misunderstandings – written by an economist, but in simple words and using interdisciplinary concepts. The material will benefit students and researchers of behavioural economics and its neighbouring fields, and anyone interested in human language."

Among the endorsements:

"The most Zen part of economics has to do with how people form beliefs about the beliefs of others. Georg Weizsäcker is a Zen master at explaining the origins of misunderstandings, particularly those arising from false beliefs about the beliefs of others.

Prof. Alvin E. Roth, Stanford University"

Graduate hotels, and campus humor

 I've been spending some time at Berkeley this quarter, and have twice stayed at the Graduate Hotel adjacent to the campus, Graduate Berkeley.  The Graduate chain  of hotels has a business model in which they purchase an old hotel (in Berkeley it was the Durant), and update it in various ways. (As far as I can tell, every room has a poster from the movie The Graduate.)  They also feel free to take swipes at neighboring universities: a restroom off the lobby of the Berkeley hotel  includes some Stanford signage.

I notice that a Graduate hotel has recently opened in Palo Alto, near Stanford.  I'll have to stop there for a drink sometime.

Kidney Exchange: Within and Across Borders (video lecture).

 Below is a video of my 40 minute talk at Berkeley on Monday, on Kidney Exchange: Within and Across Borders, at the final workshop on Mathematics and Computer Science of Market and Mechanism Design,  at the Simons Laufer Mathematical Sciences Institute (SLMath). (But we warned or reassured, this isn't a mathematical lecture...)

Here's another link to the video if you have trouble connecting:  https://www.slmath.org/workshops/1082/schedules/34227

Algorithms, Approximation, and Learning in Market and Mechanism Design at SLMath Berkeley this week--Thursday

 Thursday's program (last day)

 09:00 am - 09:45 am

Stability and Learning in Strategic Games

Eva Tardos, Cornell University

 09:45 am - 10:30 am

Statistical Contract Theory

Michael Jordan, University of California, Berkeley

 10:00 am - 10:30 am

Break

 11:00 am - 11:45 am

Learning Bayes-Nash Equilibria in Auctions and Contests

Martin Bichler, Technical University of Munich

 11:30 am - 11:45 am

Break

 11:45 am - 12:30 pm

Recent Advances in Computing Nash Equilibria in Markov Games

Ioannis Panageas, University of California, Irvine

 12:30 pm - 02:30 pm

Lunch

 02:30 pm - 03:15 pm

Learning in Games and Markets: Talk 5

Tuomas Sandholm, Carnegie Mellon University

 03:15 pm - 03:45 pm

Afternoon Tea

 03:45 pm - 05:00 pm

Learning in Games and Markets: Closing Panel