Good Markets (Really Do) Make Good Neighbors Scott Duke Kominers - - PowerPoint PPT Presentation

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Good Markets (Really Do) Make Good Neighbors Scott Duke Kominers - - PowerPoint PPT Presentation

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Good Markets (Really Do) Make Good Neighbors Scott Duke Kominers Society of Fellows, Harvard University (First!) Workshop on Mechanism Design for Social Good ACM Conference on Economics and Computation June 26, 2017 Scott Duke Kominers June

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Good Markets (Really Do) Make Good Neighbors

Scott Duke Kominers

Society of Fellows, Harvard University

(First!) Workshop on Mechanism Design for Social Good

ACM Conference on Economics and Computation

June 26, 2017

Scott Duke Kominers June 26, 2017 1

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Good Markets (Really Do) Make Good Neighbors Introduction

Today (I) – Backdrop

[. . . ] My apple trees will never get across And eat the cones under his pines, I tell him. He only says, “Good fences make good neighbours.” Spring is the mischief in me, and I wonder If I could put a notion in his head: “Why do they make good neighbours? Isn’t it Where there are cows? But here there are no cows. Before I built a wall I’d ask to know What I was walling in or walling out, And to whom I was like to give offence. Something there is that doesn’t love a wall, That wants it down.” [. . . ] (Robert Frost, “Mending Wall”)

Scott Duke Kominers June 26, 2017 2

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Good Markets (Really Do) Make Good Neighbors Introduction

Today (I) – Backdrop

[. . . ] My apple trees will never get across And eat the cones under his pines, I tell him. He only says, “Good fences make good neighbours.” Spring is the mischief in me, and I wonder If I could put a notion in his head: “Why do they make good neighbours? Isn’t it Where there are cows? But here there are no cows. Before I built a wall I’d ask to know What I was walling in or walling out, And to whom I was like to give offence. Something there is that doesn’t love a wall, That wants it down.” [. . . ] (Robert Frost, “Mending Wall”)

Scott Duke Kominers June 26, 2017 2

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Good Markets (Really Do) Make Good Neighbors Introduction

Today (II) – Outline

1 Introduction to Market Design 2 Typology of Applications 3 Two Case Studies

Refugee Resettlement (Delacr´

etaz–K.–Teytelboym)

Healthcare Data Exchange (Kho–Cashy–. . . –Boehnke–Humphries–K.–. . . )

Scott Duke Kominers June 26, 2017 3

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Good Markets (Really Do) Make Good Neighbors Introduction

Today (III) – An Auspicious Day

Charter of the United Nations

signed on June 26, 1945

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Good Markets (Really Do) Make Good Neighbors Introduction to Market Design

What is Market Design? (I)

❀ ❀

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Good Markets (Really Do) Make Good Neighbors Introduction to Market Design

What is Market Design? (I)

Application of economic principles (and AGT, OR, . . . ) to the design (or re-design) of market institutions.

❀ ❀

Scott Duke Kominers June 26, 2017 5

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Good Markets (Really Do) Make Good Neighbors Introduction to Market Design

What is Market Design? (I)

Application of economic principles (and AGT, OR, . . . ) to the design (or re-design) of market institutions.

❀ translating economic theory and analysis into practical solutions to real-world problems ❀

Scott Duke Kominers June 26, 2017 5

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Good Markets (Really Do) Make Good Neighbors Introduction to Market Design

What is Market Design? (I)

Application of economic principles (and AGT, OR, . . . ) to the design (or re-design) of market institutions.

❀ translating economic theory and analysis into practical solutions to real-world problems ❀ key margins:

1

rules governing which types of transactions may occur

2

infrastructure for facilitating transactions

Scott Duke Kominers June 26, 2017 5

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Good Markets (Really Do) Make Good Neighbors Introduction to Market Design

What is Market Design? (II)

Theory

Practice Evaluation

Scott Duke Kominers June 26, 2017 6

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Good Markets (Really Do) Make Good Neighbors Introduction to Market Design

What is Market Design? (II)

Theory

Practice Evaluation

Scott Duke Kominers June 26, 2017 6

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Good Markets (Really Do) Make Good Neighbors Introduction to Market Design

What is Market Design? (II)

Theory

Practice Evaluation

Scott Duke Kominers June 26, 2017 6

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Good Markets (Really Do) Make Good Neighbors Introduction to Market Design

What is Market Design? (II)

Theory

Practice Evaluation

Scott Duke Kominers June 26, 2017 6

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Good Markets (Really Do) Make Good Neighbors Introduction to Market Design

What is Market Design? (II)

Theory

Practice Evaluation

  • Scott Duke Kominers

June 26, 2017 6

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Good Markets (Really Do) Make Good Neighbors Introduction to Market Design

What is Market Design? (III)

Scott Duke Kominers June 26, 2017 7

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Good Markets (Really Do) Make Good Neighbors Introduction to Market Design

Outline

1 Introduction to Market Design 2 Typology of Applications 3 Two Case Studies

Refugee Resettlement (Delacr´

etaz–K.–Teytelboym)

Healthcare Data Exchange (Kho–Cashy–. . . –Boehnke–Humphries–K.–. . . )

Scott Duke Kominers June 26, 2017 8

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Good Markets (Really Do) Make Good Neighbors Typology of Applications

Outline

1 Introduction to Market Design 2 Typology of Applications 3 Two Case Studies

Refugee Resettlement (Delacr´

etaz–K.–Teytelboym)

Healthcare Data Exchange (Kho–Cashy–. . . –Boehnke–Humphries–K.–. . . )

Scott Duke Kominers June 26, 2017 9

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Good Markets (Really Do) Make Good Neighbors Typology of Applications

(Some) Types of Market Design Interventions

Scott Duke Kominers June 26, 2017 10

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Good Markets (Really Do) Make Good Neighbors Typology of Applications

(Some) Types of Market Design Interventions

1 Marketplace Mechanism (Re-)Design Scott Duke Kominers June 26, 2017 10

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Good Markets (Really Do) Make Good Neighbors Typology of Applications

(Some) Types of Market Design Interventions

1 Marketplace Mechanism (Re-)Design 2 Information Provision Scott Duke Kominers June 26, 2017 10

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Good Markets (Really Do) Make Good Neighbors Typology of Applications

(Some) Types of Market Design Interventions

1 Marketplace Mechanism (Re-)Design 2 Information Provision 3 (Re-)Shaping the Extensive Margin Scott Duke Kominers June 26, 2017 10

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Good Markets (Really Do) Make Good Neighbors Typology of Applications

(Some) Types of Market Design Interventions

1 Marketplace Mechanism (Re-)Design 2 Information Provision 3 (Re-)Shaping the Extensive Margin 4 Market Creation Scott Duke Kominers June 26, 2017 10

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Good Markets (Really Do) Make Good Neighbors Typology of Applications

Marketplace Mechanism (Re-)Design

A marketplace exists, but it does not achieve welfare/distributional goals.

“Classical” market design – often in circumscribed contexts. The welfare function and other design goals are often determined by policymakers and/or market makers; we act as engineers. e.g. school choice system redesign; implementation of affirmative action programs; organizing refugee resettlement systems; design

  • f public housing allocation mechanisms; coordination of

adoption exchanges. . . .

Scott Duke Kominers June 26, 2017 11

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Good Markets (Really Do) Make Good Neighbors Typology of Applications

Information Provision

Participants in the market have unequal information (and/or unequal incentives for information acquisition).

Goal: Change the information flow, to equalize or rebalance.

The market organizer may need to assemble information

  • upfront. . . but some mechanisms do provide efficient

information acquisition incentives. Uninformedness is a big issue—agents need to understand that information is available, and how to use it.

e.g. entry-level job certification; reporting school quality; mapping nutrition/health resources. . . .

Scott Duke Kominers June 26, 2017 12

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Good Markets (Really Do) Make Good Neighbors Typology of Applications

(Re-)Shaping the Extensive Margin

A market(place) exists, but agents do not participate (or wholly lack access).

Solutions often start with ethnography:

Where in the pipeline does participation breakdown? And what is the source of friction?

Some Common Causes:

transaction costs, historical exclusion, unawareness of the market, inability to locate/define participants.

e.g. digitization; public healthcare exchanges; land (re-)allocation; alternate college access channels. . . .

Scott Duke Kominers June 26, 2017 13

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Good Markets (Really Do) Make Good Neighbors Typology of Applications

Market Creation

The market is “missing” somehow—often via failure of coordination or pricing.

Often associated with “trivial” first-order theory. . .

“There’s a good that’s being thrown out; other people want it; all we need is a conduit (with prices)!”

. . . yet “practical” theory can be subtle.

“So why hasn’t a market emerged?”

e.g. supplying food banks; data exchanges; youth summer employment programs; teacher allocation systems; natural capital markets. . . .

Scott Duke Kominers June 26, 2017 14

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Good Markets (Really Do) Make Good Neighbors Typology of Applications

Outline

1 Introduction to Market Design 2 Typology of Applications 3 Two Case Studies

Refugee Resettlement (Delacr´

etaz–K.–Teytelboym)

Healthcare Data Exchange (Kho–Cashy–. . . –Boehnke–Humphries–K.–. . . )

Scott Duke Kominers June 26, 2017 15

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Good Markets (Really Do) Make Good Neighbors Case Studies

Outline

1 Introduction to Market Design 2 Typology of Applications 3 Two Case Studies

Refugee Resettlement (Delacr´

etaz–K.–Teytelboym)

Healthcare Data Exchange (Kho–Cashy–. . . –Boehnke–Humphries–K.–. . . )

Scott Duke Kominers June 26, 2017 16

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – Why, What?

(Delacr´ etaz–K.–Teytelboym)

Scott Duke Kominers June 26, 2017 17

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – Why, What?

(Delacr´ etaz–K.–Teytelboym)

Record number of forcibly displaced people around the world. ∼70,000 refugees to be resettled in US in 2017 20,000 Syrians in UK between 2015 and 2020

Scott Duke Kominers June 26, 2017 17

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – Why, What?

(Delacr´ etaz–K.–Teytelboym)

Record number of forcibly displaced people around the world. ∼70,000 refugees to be resettled in US in 2017 20,000 Syrians in UK between 2015 and 2020 Initial resettlement areas matter for economic outcomes. Key factors: {local communities, labor market, education, . . .}. Not all resettlement positions currently utilized(!).

Scott Duke Kominers June 26, 2017 17

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – Why, What?

(Delacr´ etaz–K.–Teytelboym)

Record number of forcibly displaced people around the world. ∼70,000 refugees to be resettled in US in 2017 20,000 Syrians in UK between 2015 and 2020 Initial resettlement areas matter for economic outcomes. Key factors: {local communities, labor market, education, . . .}. Not all resettlement positions currently utilized(!). Design Goal: A matching system that incorporates refugees’ and localities’ preferences while respecting local service/resource constraints – and hopefully leading to more supply of resettlement places!

Scott Duke Kominers June 26, 2017 17

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – What? (II) (Delacr´

etaz–K.–Teytelboym)

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – What? (II) (Delacr´

etaz–K.–Teytelboym)

Scott Duke Kominers June 26, 2017 18

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – What? (II) (Delacr´

etaz–K.–Teytelboym)

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – How?

(Delacr´ etaz–K.–Teytelboym)

We develop a matching model with combinatorial constraints. ❀ lots of complementarities ✴

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – How?

(Delacr´ etaz–K.–Teytelboym)

We develop a matching model with combinatorial constraints. ❀ lots of complementarities ✴ We offer mechanisms for different institutional contexts. “multidimensional” variant of Top Trading Cycles. . . custom stability concept; Deferred Acceptance generalizations. . .

Scott Duke Kominers June 26, 2017 19

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – How?

(Delacr´ etaz–K.–Teytelboym)

We develop a matching model with combinatorial constraints. ❀ lots of complementarities ✴ We offer mechanisms for different institutional contexts. “multidimensional” variant of Top Trading Cycles. . . custom stability concept; Deferred Acceptance generalizations. . . Still TONS to be done!

(see, e.g., Aziz–Chen–Gaspers–Sun, 2017)

Scott Duke Kominers June 26, 2017 19

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – How?

(Delacr´ etaz–K.–Teytelboym)

We develop a matching model with combinatorial constraints. ❀ lots of complementarities ✴ We offer mechanisms for different institutional contexts. “multidimensional” variant of Top Trading Cycles. . . custom stability concept; Deferred Acceptance generalizations. . . Still TONS to be done!

(see, e.g., Aziz–Chen–Gaspers–Sun, 2017; anyone know blockchain?)

Scott Duke Kominers June 26, 2017 19

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – How? (II) (Jones–Teytelboym–. . . )

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Good Markets (Really Do) Make Good Neighbors Refugee Resettlement

Refugee Matching – How? (II) (Jones–Teytelboym–. . . )

\pause

Scott Duke Kominers June 26, 2017 20

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Good Markets (Really Do) Make Good Neighbors Health Data Exchange

The Chicago HealthLNK (I) – Who, Where, When?

Scott Duke Kominers June 26, 2017 21

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Good Markets (Really Do) Make Good Neighbors Health Data Exchange

The Chicago HealthLNK (II) – What?

(Kho–Cashy–. . . , 2015)

Patients may receive care at multiple healthcare institutions. ❀ “Single-site” and “multi-site-query” studies may under- or

  • ver-represent {number of patients, extent of treatment, . . .}.

Scott Duke Kominers June 26, 2017 22

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Good Markets (Really Do) Make Good Neighbors Health Data Exchange

The Chicago HealthLNK (II) – What?

(Kho–Cashy–. . . , 2015)

Patients may receive care at multiple healthcare institutions. ❀ “Single-site” and “multi-site-query” studies may under- or

  • ver-represent {number of patients, extent of treatment, . . .}.

But the Health Insurance Portability and Accountability Act (HIPAA) imposes health information protections that make sharing data hard.

Scott Duke Kominers June 26, 2017 22

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Good Markets (Really Do) Make Good Neighbors Health Data Exchange

The Chicago HealthLNK (II) – What?

(Kho–Cashy–. . . , 2015)

Patients may receive care at multiple healthcare institutions. ❀ “Single-site” and “multi-site-query” studies may under- or

  • ver-represent {number of patients, extent of treatment, . . .}.

But the Health Insurance Portability and Accountability Act (HIPAA) imposes health information protections that make sharing data hard. Design Goal: A data exchange that preserves HIPAA protections and incentivizes participation (and makes participation safe).

Scott Duke Kominers June 26, 2017 22

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Good Markets (Really Do) Make Good Neighbors Health Data Exchange

The Chicago HealthLNK (III) – How?

(Kho–Cashy–. . . , 2015)

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Good Markets (Really Do) Make Good Neighbors Health Data Exchange

The Chicago HealthLNK (IV) – Why?

(Kho–Cashy–. . . , 2015)

Numbers of patients identified with Type II Diabetes, Asthma, and Myocardial Infarction (by ICD9 codes):

Non-Deduplicated Deduplicated % Reduction Type II Diabetes 135,779 103,177 24.0% Asthma 110,640 79,563 28.0% Myocardial infarction 6,049 5,384 10.9%

❀ ❀

Scott Duke Kominers June 26, 2017 24

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Good Markets (Really Do) Make Good Neighbors Health Data Exchange

The Chicago HealthLNK (IV) – Why?

(Kho–Cashy–. . . , 2015)

Numbers of patients identified with Type II Diabetes, Asthma, and Myocardial Infarction (by ICD9 codes):

Non-Deduplicated Deduplicated % Reduction Type II Diabetes 135,779 103,177 24.0% Asthma 110,640 79,563 28.0% Myocardial infarction 6,049 5,384 10.9%

❀ essential for city-scale epidemiology ❀

Scott Duke Kominers June 26, 2017 24

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Good Markets (Really Do) Make Good Neighbors Health Data Exchange

The Chicago HealthLNK (IV) – Why?

(Kho–Cashy–. . . , 2015)

Numbers of patients identified with Type II Diabetes, Asthma, and Myocardial Infarction (by ICD9 codes):

Non-Deduplicated Deduplicated % Reduction Type II Diabetes 135,779 103,177 24.0% Asthma 110,640 79,563 28.0% Myocardial infarction 6,049 5,384 10.9%

❀ essential for city-scale epidemiology ❀ at finer-grained geography, can improve intervention targeting

Scott Duke Kominers June 26, 2017 24

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Good Markets (Really Do) Make Good Neighbors Health Data Exchange

\pause

Theory ❀ Practice

Scott Duke Kominers June 26, 2017 25

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Good Markets (Really Do) Make Good Neighbors Wrap

(Some) Types of Market Design Interventions

1 Marketplace Mechanism (Re-)Design 2 Information Provision 3 (Re-)Shaping the Extensive Margin 4 Market Creation Scott Duke Kominers June 26, 2017 26

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Good Markets (Really Do) Make Good Neighbors Wrap

(Some) Types of Market Design Interventions

1 Marketplace Mechanism (Re-)Design 2 Information Provision 3 (Re-)Shaping the Extensive Margin 4 Market Creation Scott Duke Kominers June 26, 2017 26

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Good Markets (Really Do) Make Good Neighbors Wrap

(Some) Application Domains (Citations NOT exhaustive!!)

Adoption (Slaugh–Akan–Kesten–¨

Unver, 2016)

Food Banks (Prendergast, 2016) Healthcare (Lindau et al., 201*; MANY TODAY) Teacher Allocation (Featherstone, 2014; Davis, 2017) Youth Employment (Gelber–Isen–Kessler, 2016) Labor Markets (Pallais, 2014; Stanton–Thomas, 2016) Sustainability (Hepburn–Teytelboym, forth.) Immigration (Weyl, forth.) Public Housing (Leshno, 2015; Thakral, 2016; Arnosti–Shi, UP NEXT) Development (Hussam–Rigol–Roth, AFTER THAT)

Scott Duke Kominers June 26, 2017 27

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Good Markets (Really Do) Make Good Neighbors Wrap

Conclusion

“Something there is that doesn’t love a wall, That wants it down.” [. . . ] ❀

Scott Duke Kominers June 26, 2017 28

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Good Markets (Really Do) Make Good Neighbors Wrap

Conclusion

“[The market] there is that doesn’t love a wall, That wants it down.” [. . . ] ❀

Scott Duke Kominers June 26, 2017 28

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Good Markets (Really Do) Make Good Neighbors Wrap

Conclusion

“[The market] there is that doesn’t love a wall, That wants it down.” [. . . ] ❀ We have many opportunities to design markets “4” social good, QED!

Scott Duke Kominers June 26, 2017 28

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Good Markets (Really Do) Make Good Neighbors Wrap

Conclusion

“[The market] there is that doesn’t love a wall, That wants it down.” [. . . ] ❀ We have many opportunities to design markets “4” social good, QED! \end{talk}

Scott Duke Kominers June 26, 2017 28

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Good Markets (Really Do) Make Good Neighbors QED

Index

1

Good Markets (Really Do) Make Good Neighbors Introduction Introduction to Market Design Typology of Applications Case Studies Refugee Resettlement Health Data Exchange Wrap QED

Scott Duke Kominers June 26, 2017 29