8 de noviembre de 2010

How to Fix a Broken Marketplace -

Executive Summary:

A pioneer in the field of market design, Harvard Business School professor Alvin E. Roth has helped to repair flawed market systems in fields ranging from kidney donation to high-school student placement. Key concepts include:
  • Successful marketplaces must be "thick, uncongested, and safe."
  • Sufficient "thickness" means there are enough participants in the market to make it thrive.
  • "Congestion" is what can happen when markets get too thick too fast: there are heaps of potential players, but not enough time for transactions to be made, accepted, or rejected effectively.
  • "Safety" refers to an environment in which all parties feel secure enough to make decisions based on their best interests, rather than attempts to game a flawed system.

About Faculty in this Article:

HBS Faculty Member Alvin E. Roth
Al Roth is the George Gund Professor of Economics and Business Administration in the Department of Economics at Harvard University and at Harvard Business School.