Working Paper: NBER ID: w26873
Authors: Yan Chen; Peter Cramton; John A. List; Axel Ockenfels
Abstract: We review past research and discuss future directions on how the vibrant research areas of market design and behavioral economics have influenced and will continue to impact the science and practice of management in both the private and public sectors. Using examples from various auction markets, reputation and feedback systems in online markets, matching markets in education, and labor markets, we demonstrate that combining market design theory, behavioral insights, and experimental methods can lead to fruitful implementation of superior market designs in practice.
Keywords: Market Design; Behavioral Economics; Management; Auctions; Matching Markets
JEL Codes: C91; C93; D4; D47
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| market design theory + behavioral insights (D40) | improved market designs (D47) |
| market design (D40) | bidding behavior (D44) |
| auction design (D44) | sniping (Y60) |
| market design (D40) | market efficiency (G14) |
| matching theory (C78) | resource allocation (H61) |
| matching mechanisms (C78) | market efficiency (G14) |