Overview of Material: Market Design

Fall 2011

Peter Coles
pcoles <at> hbs.edu
Negotiation, Organizations and Markets Unit |
Harvard Business School
Baker Library 439
Phone: 617.495.9819
Assistant:
Ranjan Ahuja| rahuja@hbs.edu | 617.495.6034

Paper: Assignment
For week 3 (due by 5pm Friday, Sept 16)
Browse through the blog
Select a topic either from the blog or from
elsewhere (you wont 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.

Entrepreneurial Market Design

An additional source for paper ideas

RelayRides
Corkd
TeachStreet
VigLink
myFA
GoodGuide
ClearMechanic
Ocean Tomo

Topic List
Signaling in Matching Markets
Intro to Auction Theory
Multiunit auctions

Internet Ad Auctions
Generalized Matching
Prediction Markets

Guests
Ben Edelman (HBS) Market for IP Addresses
Eric Budish (Chicago Booth) Ticket Auctions
Clayton Featherstone (HBS) Matching in
Teach for America

Past Students

Signaling in Matching Markets

Roth & Xing market for clinical psychologists

Coles, Kushnir & Niederle Signaling in

Matching Markets
AEA Signaling Mechanism

Signal Flow in the AEA Mechanism

Tiers (1-10,11-50,51-150,150+, U)

1
2
3
4
5

1
81
68
24
8
4
185

2
189
225
72
47
29
562

3
135
276
161
54
29
655

4
48
221
201
97
41
608

5
Total
75 528
334 1124
364 822
295 501
120 223
1188 3198

Internet Ad Auctions
Varian Position Auctions

Edelman, Ostrovsky & Schwarz Internet

Advertising and the Generalized Second-Price
Auction

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

Gale Shapley vs Kelso Crawford

Gale Shapley

Kelso Crawford

Deferred acceptance algorithm

auctioneer price adjustments

Stable matching

Allocation in core

Firm optimal element of core

Firm optimal element of core

Lattice structure

Lattice Structure

Strategic incentives

Complementarities?

Prediction Markets
Prediction Market Theory

Prediction Markets in Action

Case Study: Google Prediction Markets

Exercise: Class Prediction Markets

Forecast Screen

The Main Betting Screen

Placing a Bet

Leaderboards

Back to your regularly scheduled

programming