Who Gets What ― and Why: The New Economics of Matchmaking and Market Design by Alvin Roth
The thickness of the markets is also referred to as The Cold Start problem of social networks by Andrew Chen as a required usage before network effects can begin to flow. Another you cant build a risk model without giving bad loans from The Money Hackers: How a Group of Misfits Took on Wall Street and Changed Finance Forever.
Professor Roth is referred to as "unfreakonomics".
He wants to expand the audience's understanding of what a market is.
Market Design to address Market failure.
3:38 Market clearing institutions for unoversity classes - Applications process, essays, interviews, admissions.
Matching Markets.
When you are chosen, you dont worry about what matching markets are. When you are not chosen, you go off and start Stanford University. If you are disappointed like me, here's the real story.
Labor market is a matching market. Consider the cascade involved with university as its feeder matching market.
Google certificates is a collapsing of two matching markets - Universities and Labor Markets. Lambda is another way.
Job for a newbie without experience is a cry for a new clearinghouse. Lambda solves that and even expands the Bottom of the pyramid in The Innovation Stack: Building an Unbeatable Business One Crazy Idea at a Time.
The congestion of the market is a problem in established industries in labor markets while the thickness of the market is a problem in emerging industries especially tech where datascience/ AI/ML have shortage of resources. The congestion problem shows as multiple offers for the same person but at the end some posts go unfilled.
The kidney donor example shows how you need to increase the routing to decrease the congestion. To increase the routing, you need to increase the thickness especially in an incompatible transfer, where you need swaps for the donation to work.
A related reading is Mine!: How the Hidden Rules of Ownership Control Our Lives by Michael Heller.
Comments
Post a Comment