The emerging field of market design utilizes tools from economic theory, computational economics, and experimental economics to provide practical solutions to real-life resource allocation problems. Some especially successful applications include auctions, school choice, and kidney exchange.
2012 Market Design Nobel Prize
The increasing role of market design in mainstream economics was reaffirmed with the award of 2012 Nobel Prize in Economics to Alvin Roth and Lloyd Shapley for their contributions on “Stable Allocations and the Practice of Market Design.”
I congratulate Alvin Roth and Lloyd Shapley for this honor and thank the Nobel Committee for their recognition of my research program in the following Scientific Background on the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2012.