Overview of Material: Market Design

1. Overview of Material: Market Design Fall 2008

2. Peter Coles • pcoles <at> hbs.edu • Negotiation, Organizations and Markets Unit | Harvard Business School • Baker Library 439 • Phone: 617.495.9819 • Assistant: • Rich Swartz | rswartz@hbs.edu | 617.495.6316

3. Paper: Assignment • For next week (due by 5pm Friday) • Browse through the blog • Select a topic either from the blog or from elsewhere (you won’t be held to this topic – this is just meant to get you to start thinking about ideas sooner rather than later) • Submit a paragraph or two discussing potential research ideas.

4. Topic List • Signaling in Matching Markets • Intro to Auction Theory • Multiunit auctions • Internet Ad Auctions • Generalized Matching • Prediction Markets • Carbon Trading

5. Guests • Ben Edelman (HBS)– Market for IP addresses • Parag Pathak (MIT) – School Choice • John Parsons (MIT CEEPR - Center for Energy and Environmental Policy Research) • Bettina Klaus • Past Students

6. Signaling in Matching Markets • Roth & Xing – market for clinical psychologists • Coles & Niederle – Signaling in Matching Markets • AEA Signaling Mechanism

9. Internet Ad Auctions • Varian – “Position Auctions” • Edelman, Ostrovsky & Schwarz – “Internet Advertising and the Generalized Second-Price Auction”

13. Generalized Matching • Kelso Crawford (1982) – Multi-unit auction for substitutes. • Hatfield-Milgrom (2005) – Matching with Contracts • Ostrovsky (2008)– Stability in Supply Chain Networks

14. Gale Shapley vs Kelso Crawford

15. Prediction Markets • Prediction Market Theory • Prediction Markets in Action - Case Study: Google Prediction Markets • Prediction Markets in Action: Iowa Electronic Markets

17. Presidential Election: WTA Asset

18. Carbon Trading • Intro to Cap and Trade Markets • Exercise • Guest: John Parsons (MIT CEEPR - Center for Energy and Environmental Policy Research)

19. Back to your regularly scheduled programming…