Eight recipients of the medal of honor. So it is very difficult. What happens often times they heroism is recognized, but not at the highest level or to the silver star or the bronze star very few people are in the middle. He would almost for sure say that he didnt deserve it. He might point out to somebody else that was more heroic than he was he was very humble. He never talked about the Carnegie Medal and when i interview people that knew him when i did the book a long time ago people knew him well and i said what about the Carnegie Medal and they didnt know anything about it. He earned his medals and was very modest. He didnt think that he deserved it so he never talked about it and i think that he would have been the same way. Ive known a lot of medal of honor recipients in the foundation and most of them will tell you i didnt deserve this and it should have been given to somebody else. Its a piece of humility we all can learn from and he would have been in that category. For more information on the booktv visit to augusta and the other cities visited by the local content vehicles go to cspan. Org local content. A professor of economics at stanford and recipient of the 2012 nobel prize economics looks at how different markets work. This is next on booktv. [inaudible conversations] lets get started. [inaudible] its my great pleasure to welcome you for an evening with alan roth. We are the policy institute so those of you that have not been here she then moved into the house [inaudible] this has served. So come as an academic economist, ive often been confronted with skepticism outside of the profession in particular among the economic. My instinct is to check. One is for the work on matching. Add to illustrate the value it is useful for telling us what is not achievable. So we have our own rankings over a number of policies. How do we aggregate fees as a whole . It is logically impossible to come up with one that satisfies the requirements of fairness and democracy. But all is not lost. True democracy may be impossible but that relationships in the outreach. [laughter] added the fundamental and exciting work in the markets. When we think about the markets, we look at the neck net of the crisis which does a good job for the consumers that value than the most. But what if they had feelings, have feelings, too mac and they could accept or reject . And what if there were limitations on the payments come how then could we set up the markets for the individuals in the best possible way . For the models of the complex markets and as it applies to the real world particularly on the successful redesigning. I am a huge fan and i have one of the memories of attending as a graduate student and its great to have him here to speak about his new book and his work. Hes the professor of economics at stanford where he runs the Operations Research in 1974. He has held at the university of illinois and the university of pittsburgh. In 2012 he won the prize of economics. And im also happy to welcome the chief Program Officer [inaudible] using the versions of evaluation. He has had a very illustrative career. He received a phd from mit and since then allowing many other things hes been a professor at the college and served on the Editorial Board of the New York Times had worked as the founding director of the center for the economic studies. I had the pleasure of hearing him speak at the conference about the shortage and the possibilities. Between him and [inaudible] that will be followed by the book signing and reception taking place upstairs. Thank you. [applause] i would like to thank the audience that comes out for the buck on economics. [laughter] you laugh and thats because he would know that economics is supposed to be boring. But i never understood why that should be the case. Its always seemed to me that its the best kind of gossip and you look at the choices that confront them and they might have confronted you if you had chosen a different career or Different School or made other choices coming and that might also have been traces that you still have to make. And why a book is about market design economics that is an ancient activity. Upon markets are deeply. They were thousands of miles away and it means that they were before the invention of agriculture so people have been doing the markets for a long time. They are ancient artifacts and i think of them as being a little bit like languages which are also the artifact but we mostly dont think about the language is artifacts because we dont think that we can modify them. And speaking to you in english and i wrote my book in english but it is as i received it. I dont free to modify english. The markets are a little bit different because they have proprietors and influential groups of users so it is more amenable. And markets have designs. The markets have rules and the rules by which they were part of their designs. Just like there are lots of different languages, there are lots of different kinds of markets. So what i have in my book are matching markets and they are quite a bit different than the Commodity Markets that we often think about. Because when we think about Commodity Markets, we are thinking about those in which the prices do all the work. And the reason they can do all the work in the welldesigned commodity market is that you dont have to care who you are dealing with. When you buy 100 shares of at t on the New York Stock Exchange come you dont care who you are dealing with or if they are taking good care of the shares. The important thing is the price the matching markets are markets in which you cant just choose what you want. Think about the college emissions in the university and its its expensive to go to Stanford Stanford doesnt raise the tuition until just enough kids would like to enter the classes. The price they charge lots of people like to come to stanford so theres all kinds of institutions so you cant just choose to go to stanford you have to be admitted. Stanford cant just choose who will come. They have to compete with and like you and all the other wonderful universities. You have to be hired and google cant just choose, they have to compete with facebook. They are still around and there are markets that work differently than the Commodity Markets and i want to talk about the design of the markets but before i do let me make sure they also have to be designed so the board of trade makes winter wheat. Before there were commodity definitions like that come you have to inspect because they hit hard wheat and soft wheat but by the time it is modified as part of the market design. If we are studying is too big of a subject. We would study the conversations and Television Shows so there are places that they have happened and they are also the parts that are most amenable to designing. So the markets run by rules and today they are almost ubiquitous we dont carry marketplaces and you can get them on ebay and amazon and they will match travelers to drivers. You can go on link them to help you find a job. They are all matching markets. Theyll have to be chosen shot. The prices may be for some of these things but they dont determine who gets what. There are other institutions that determine who gets the job. And ebay to start off as an auction site. So what do the marketplaces have to do to facilitate . What makes a marketplaces successful . First it has to make it safe so that you can find those that have things you need or want what you have. Then you have to deal with the problem of congestion so they are not really there if you cant consider them so theres lots of stuff. Congestion can be up hard congestion can be up hard problem. Each controls very few so if we go to the hotels and call to see if they have a room you have to ask by room number and can only inquire up one room at a time. Friday night, room 27. Sorry, room 27 is booked that night. How about 28. Each one offered very few rooms. So if you would have to ask about it at the very hard but when somebody inquires they can take it away so they dont have to wait until they come home to work and come from so it is a market thats hard to imagine how it could have worked before. When you think about technology and making the mark ubiquitous. But if you had to reserve it would be a lot like on the telephone to get it from the Street Corner while youre standing on you are standing on the street you can use the applications of one of the things we are seeing is that technology is changing the way we deal with these problems and how to get them together to deal with congestion and safety and reliability and trustworthiness so one thing you could worry about is paying the taxi driver bill. They are less anonymous than outweigh. Speak to. But they know who you are. If i were interested i would say we would sign up as a driver so you wont run off when you get to the destination so a lot of what they do is not only do they have to make the markets and then successfully deal with congestion and a big market they have to make them safe and simple. One is amazon. You can buy from lots of different sellers. It is a host of market places and you buy from them so it turns out they have trouble dealing with them. The planning for the department of education what he was concerned about is getting 85,000 new york was congested as the market you still couldnt access. But it would ask each and the second choice and third choice and that would constitute the applications of they would know. Then they would make decisions as they please get back say please get back to us on which one so that we can make the spots available. The process was too slow so the 17,000 of multiple offers and about 30,000 didnt get one by the end of august so it was congested there was also a safety problem because if you could decide to admit that meant it wasnt safe to reveal your school was your first choice because then you might miss the chance. So today it makes it safe to reveal the practice and that helps the congestion but the chance of getting the second choice is the same as the first so you dont lose the chance to. Speech you didnt go [inaudible] then she says they will be making matches and so it goes on and doesnt seem so hard. It was created for making managers but he thinks it is as hard as dividing the red sea, so matching is important and i didnt write the book this way but when i wrote it as a matching market and the way that useful than it turned out in the proposal but i have proposed that along the way it and it is good to start with neonatal transplants. Its not just so you have the big picture. Sometimes one of the things they can find out is that its working properly but if they would need a heart transplant it was important for you to use on the waiting list for the hard right away and he wanted your patients to have priority but of course sometimes one would become available while the patient was still a fetus and baby couldnt be it was too early but if it was late enough you could do this is very amanda transplant and that meant that the scarce hard would go with babies with a lower birth rate and when an adult is on the waiting list the longer you are on the longer you will need it but the baby is getting healthier and healthier and coming to full term so this is the case mac stuff survived transplant [inaudible] and it comes full circle with how we allocate at the end of his life but that isnt my editor looked at it and said boring. [laughter] so i made i found the markets around us fascinating. [applause] [inaudible] what is the best way to engage and people want to take a risk. When i ran at the time one of the hardest is to describe why they ran the nobel prize because when you try to translate it sounds like the price of that. But you describe in the book but it takes to make them work. You have a clearinghouse theres nothing in the market etc. You describe something called the acceptance algorithm. What did you do . What was the contribution . How did you translate that so that they could be assigned etc. What did you do . Spec i did a couple of things. One of them i discovered before they began it has been discovered in particular the residency match that had more than a decade and it was much more difficult to describe but it was the equivalent. Knowing that allowed me to understand the clearinghouse function if served to the market , so in the 1900 if you are a doctor and medical school you went and looked for a job at hospitals started to compete with each other for the residency is and students were getting their first jobs around christmas time there last year of medical school and there was an effort to make sure that it didnt go any further for the players to compete with each other in that way so many were being hired before the graduation and he could have gotten an a in anatomy in the surge and great job as a surgeon and then discover that you faint at the sight of blood. So lots of markets have failed in that way and controlled the timing but it was hard to consider multiple offers and things worked solidly for many years until the couples started to be part of the labor force. But what i found early on is that they solved the problems in the marketplace and that is what led to this. So you didnt get to come here a lot. Another thing when it sought to redefine when it was related by trial and error medical students in the United States were all men and then there were about 10 of women and today theres about 50 and one of the things about being in medical school is you have time to marry your classmates. [laughter] so there are a lot of students married to each other and therefore have two jobs and one of the things we have to figure out how to do is help them find two jobs together. Hispanic [inaudible] thats a little tricky. What we tell you about that. What they did in 1962 is they wrote a paper called College Admissions and the stability of marriage is about a simple model they basically talked about marriage and College Admissions. How do you match many of women into supposing you were trying to match them, what requirements would have to have been . If you suggest you want people to follow through if the peace table in the following sense there shouldnt be too people not married to each other but the speaker to be married to each other because of the weather case they could marry each other instead of doing as you suggested and it turns out thats an important property for many markets and they found a way to do that. Then couples started to appear in the market and one thing in the clearinghouse its very successful and what i mean by successful no one had to go through but when you looked at after a few years almost all would go through and they were being employed at the hospitals that were suggested so they were producing a suggestion and you have been matched to the following students, please exchange. 95 of the jobs were being filled. The students were where they were supposed to be. When couples started, they were somewhere else and they try to accommodate them and they understood there were couples have needed two jobs so the 1970s are a long time and the way that the Community Try to facilitate to help them match each other is first they had to be certified then they have to decide one of the members was the leading member and each submitted a list this is my first choice, second choice, then they went through and the other member had his or her list what is going on is the iron law of marriage which says you cant be happier than your spouse. So suppose that we are looking for two jobs. We have to create jobs in new york and as our second choice we have two great jobs in San Francisco and a slightly less good job and so forth but when you do this where do you get one great job and lost in. We were wondering before [inaudible] sylvia davis restore the stability and make sure that we would ask them if they wanted it and asking what is your first choice and second choice and what is the first choice as a couple and what is the second. Until you ask that question you cant possibly get [inaudible] it is a reflection as to why in the third world country [inaudible] should we think of these as the matching doesnt quite work and what is the message you want the readers to take away from your book . You see it in a different way they eat different things. I would like people to look at a markets a little differently. They are not just a Farmers Market theres all sorts there is all sorts of ways we interact with each other that when you see it in their detailed you understand more about them so for example let me describe to you how the different restaurants are organized and after i describe it to you you will be able to tell me what color tablecloth. So restaurant number one that suggestion is in the kitchen so you need a reservation to get a seat. You are seated immediately but it takes a while for the food to come so you are asked if you would like wine or cocktail and you place your order and converse and then the food comes after a while and later you were asked if you want each displayed and later the bill is brought to you and put on the credit card and the server comes and goes so theres a lot of interaction with the server in a restaurant. Restaurant number two doesnt take reservations and when you arrive you tell how big the party is and gives you an estimate of 20 minutes and give you a teacher and you wonder around until the meal is ready, im sorry, until the table is ready. They can see as soon as possible and gets up and leaves. And as soon as you sit down your order is immediately taken and quickly brought in as you are finishing her desert papering the check and put it on the table and you get up and go to the Cash Register and whatnot. And the third restaurant is the lineup for a cashier, tell them what they want, pay for it, carry your food tray table and eat, get rid of your tray. Simultaneously he you order what you want and so those are the restaurants that deal with congestion in different ways. Number one is in the kitchen they cooked to order and cant have more people than the kitchen accommodates. Number two they just cook a lot of the food well in advance and the tables are in short supply. They cook the food and water make the interaction fast and of course the tablecloths are white, its a fancy restaurant, they are not plastic checkered like the one where they serve you and someone else gets up and the other is like a mcdonalds. So that the bird eats fish and bird eats worms. You can see they all deal with congestion. They deal with matching their capacity to the customer but the congestion tells you a lot of things so one of my hopes is if you look at the markets you see them in a way that you didnt see them before. Spinnaker i can answer that for me and more generally for america. There are not enough organs to transplant and my colleagues and i have helped the surgical colleagues in the exchange and the idea is that there is a shortage and its a shame not to use those that are available and one is through the living donation if you are healthy and you can remain healthy with one swift someone is dying of Kidney Disease sometimes you are healthy enough to get a kidney but you cant get it to the person that you love because they have to be matched and compatible. And i could be in the same situation. I have a two or more compatible engaging in the exchange. You can give it a kidney to patient that you love and got to transplant become available that were not available before. This is a matching market to build on our money to play a role. Its a felony in the United States to buy one for transplant. You cant buy one from a donor. And i could tell you about victory after victory. I devoted a chapter in the book to kidney exchange. I can tell you about victory after victory. Weve had unexpected success in helping organize kidney exchange. But these are victories in a war that were still losing. There are 100,000 people waiting for donor kidneys in the United States, and we only get about 11,000 deceased donor kidneys and ive become interested in this whole question of which things do we allow to be bought and sold and which do we not . Its against the law to buy and sell some kidneys. Its what i call a repugnant transaction. Its a transaction that some people would like to engage in and other people that arent directly harmed by the transaction dont want them would you personally overcome that if you were in the legislature i would at this point be prepared to endorse experiments to see what would happen than to try to design a carefullyregulated market whats is becoming the worst . We worry, of course, a cash market for kidneys would exploit the poor and vulnerable and would create a [inaudible] how do you know exploitation from giving an option exactly. Thats a tricky question. When you look at the black markets, its clear theres trafficking. But were a country with pretty powerful rule of law, you know . Think about prohibition where we tried to, where we found Alcohol Consumption to be a repugnant transaction. You know, the speakeasies where you would buy bootleg whiskey are very different than the fancy wine stores i can go to now. So legal markets would be different than black market, but they take some thought. When you see something thats against the law everywhere in the world, makes you think theres something we economists might be missing here in the world and we need to understand to move forward. Wheres your research . Im thinking a lot about kidneys, im thinking a lot about school choice, and im thinking a lot about repugnance. I would like to understand. Also thinking, you know, political year, what makes a free market . Sometimes people think its [inaudible] as being designed as if markets just grow like weeds. But lots of markets dont grow like weeds. The New York Stock Exchange has lots of rules. The chicago board of trade has lots of rules. Not just what kind of wheat to send to each trading pit, but whether youre allowed to try to corner the market and things like that. And some of those rules are produced by private providers, by the New York Stock Exchange or chicago board of trade, and some are produced by government. There are government regulations that try to make markets safer to make them work better. And, of course, what rules make a market work well change as the environment changes. And so i think the political discussion could better be focused not on should there be regulation and even who should provide it, but what kind of regulations help what kinds of markets to work freely. This conversation could go on forever, and its utterly delicious to chat with someone with this kind of creativity and insights, but the time has come. Well open it up for questions from the audience, and i think theres someone with a mic coming around. So, yes. [inaudible] either one. Could you then you can pass it to him and okay. Could you conceive of a matching regime where one side is not able to rank the other side . For example, matching patients with specialists or matching clients with lawyers . Because it seems to be a very inexact process now. Its based upon, you know, you go in to see your internist, and he says, ooh, that doesnt look good, you know . And then he says youve got to go see dr. So and so who just happens to be somebody that he knows or has worked with before, Something Like that. Whereas dr. Somebody else down the road may actually be better. Is it possible that you dont know who any of these people are and neither does your southwestern . The less you your intern . The less you know about who they are, but think about matching children to schools. Here in new york city high schools have preferences. So children and families have preference over schools and schools have prerches over kids preference over kids. But in Many American cities, the schools dont have preferences over kids, and the School Principals in particular plano particular role in the play no particular role in the assignment process. So thats more like assigning children to School Places that dont have preferences over them. And so what the school board does, it tries developing rules, priorities for which kids it would like to see in which schools or that it thinks would be good for the kids based on what kind of education is available and what are the needs of the kids. And the families have preferences. But the schools have priority children have priorities with each school with the priorities set by the school board and also to the capacity of each school. So thats a kind of matching that just has preferences on one side. So perhaps. But you have to know something about the schools and where they are, you have to know something about the specialist before you could intelligently do that. Many things are assigned by lottery, of course, where we dont have any information, right . So if we dont have information about which would be good matches that we want to have a match thats run transparently and fairly, one thing that by lottery. Gentleman in front. Im in the Health Care Industry as well, its a relevant question from the gentleman back here. I deal with data on a daily basis, and the idea of interoperability across emrs, that seems like a market failure where you cant get one record into another place absolutely. Emrs . Sorry, Electronic Medical records within hospitals. In terms of regulation or perhaps a system thats, like, that could be in place, how would you see that being marketplace . So its certainly a problem that i transferred my medical records from boston to california when i moved. I brought my records as flat paper, and they were at some point entered into the system in an electronic way, and now they cant even be found. [laughter] thats a problem of interoperability. One way to handle it is for the government to try to set standards, another way is for companies to compete on that. But eventually, one set of common industry standards should arise. This is, you know, think about video recorders back when we had or video players. There were different standards. Think about android as an operating system, you know, the reason android is a popular operating system and so is iphone is that lots of different people can write apps for those. Theyve agreed on a common standard. So lots of markets in which industrial standards eventually emerge that allow people to trade over distances and times. But it can take a while, and its certainly taking a while in medicine. So that might be a role for government, but, you know, the federal government once tried to make a standardized programming language that no one has ever heard of because no one wanted to program it. But the Defense Department originally imagined that it was going to mandate that all software written for the Defense Department should be programmed data, but that fell by the wayside as other more interesting programming languages became better. So theres dangers in having the federal government try to figure out what medical records should look like. But it is a mess, and health care in general is poorly designed in the United States because its been built piecemeal. Parking lots have been added to each other parts have been added to each other and, of course, its a giant economy and there are lots of institutions and interests that have to be taken care of. Its not a process you start from scratch, its a process that you incrementally try to make things a little better. And because its, the Health Care Market is such a complicated one, i would guess the place that has the most potential to initiate reforms are going to be in Large Companies that selfinsure. Because they capture the benefits when youre healthiest as well as when your health care doesnt cost so much. Theyre glad when youre healthy and come to work whereas Third Party Insurers mostly just want that you shouldnt be too expensive to take care of. I deal a lot with kidney surgeons and kidney transplants and, of course, those are expensive things, and insurance is set up to pay for that, and medicares set up to pay for that. Thats a giant part of medicare. But its harder to finance a clinic that would talk to diabetes patients about their nutrition and how to control their disease. And its harder to bill for and put on your medicare cost sheets and things like that. If youre a selfinsured company, that might be a good investment to let your employees who have diabetes have a lot of access to nutritionists. So thats the kind of thing were still having trouble with, because we pay for medicine as piece work a. Piece work. Yes. What parts of Representative Government that we have are matching markets, and how are they not matching markets . Well, the federal government is a big employer, so [inaudible] matching markets, theyre certainly a big player in labor markets. Parts of the federal government assigns people to jobs. The military, you know, gives people an assignment. When people graduate from the naval academy, they get to choose, actually, in rank order by class which service theyll enter. The army has a different system. Theres a big problem many getting in getting benefits to people who need them, and so there are lots of federal benefits available that are hard to have people access [inaudible] i was referring more to electing people, to choosing who our representatives are. So i dont know that those are magic markets. They are clearly collective problem is we can talk about elections [inaudible] what he told us about the limits of design for aggregating modes and preferences. But you can certainly, you know, think about design [inaudible] how to run elections. Should we require people to vote . Would that give us Better Outcomes . Should we, should we make it more easily public who votes . Turns out who votes is actually available information, and campaigns know whether youre a frequent voter or not. Should we conceal that . Theres lots of design questions that have to do with data about who knows what, about what happened in the last election, things like that. Were seeing very dayintensive campaigns now dataintensive campaigns. It used to be when you got a phone call, people wanted to let you know that there was a president ial election coming up. Now youre likely to get a call that youre someone who would vote for this candidate but who might not come to the polls without being reminded. They know more about you. They focus their attention on that. Theres lots of polling that goes on. Weve had some markets it sort of used to be that the Election Results could be recorded from Eastern States before california polling places had closed, and now, you know, if you listen on to on election night, the anchors will go through elaborate posturing as if they dont know what happened in new york in order not to announce as soon as the california polls close. You know, new york went to the democrats. [inaudible] whether new york went to the democrats [laughter] we sit there wringing our hands. Exactly. Yes. Since you, Michael Weinstein thank you are connected to the robin hood foundation, lets have some fun with that as a market. That is, youre bringing together very wealthy people who and you can tell theres more who are motivated for Different Reasons to come. And they could be social reasons. Theyre not necessarily concerns of people. And then you gather a lot of resources, and you have to outpace them. And how do you make choices which charities are the most valuable, which [inaudible] could you be benefiting . How do you play with this as a market. So i regard this evening as [inaudible] not me and robin hood. Let me say a couple words about markets. I often portray what i do in robin hood which is in charge of giving the money away, i often portray it as a market, and into this market come ideas. People, you know, Domestic Violence shelter or a Microlending Program or a jobtraining program or hep c program, whatever you want to do. And those ideas march into our building one way to or another. They come out of heads of Program Officers, out of the heads of a reporter in the New York Times, a thing that went on in san diego that either succeeded or didnt succeed and we think we could do better, the idea gets tabled. Now the fun begins. We impose a set of algorithms to decide which of those things deliver the most impact on the Living Standards of poor new yorkers per dollar than any of the other proposals. I absolutely see what we do as a market. You were asking on the donor side, and i get into that easily in the sense that we live by the same rules we lived at at the New York Times. Theres a chinese law of robin hood between the donors and the grant makers, and the grants contest. So we dont listen our donors dont tell us how to spend the money. Overwhelmingly, theyre giving us unrestricted money. We put it through a disinterested set of algorithms to find out where to spend it, but i dont want to turn this into a conversation about robin hood. In the back. Hi. Im interested in [inaudible] and since your book is called who gets what, im interested when we think about Something Like google where theres a big hiring in the labor market there, and theyve recently made public a lot of their statistics about who works there and [inaudible] men are overrepresented [inaudible] sort of same biases. If in a lot of those cases [inaudible] you know, not enough people applied, so its not really our problem, but clearly bias is playing a role among the Decision Makers in many cases. Can you talk about how we overcome that, how markets can become more fair . Well, so orchestras used to have a gender bias problem, and one of the ways they dealt with that was by having blind auditions. I guess you cant do this for singers, but you could do it for first violinists. So you could have people behind a screen all play the same piece or a piece of their choosing. You dont have to look at them while theyre playing the violin, and you could make your first decisions based on how you think they sounded rather than how they looked. So my colleague, claudia golden, has looked at the records of a bunch of orchestras before and after auditions were blinded in this way and found that more women musicians were hired under blind auditions than under visible auditions. And i presume, incidentally, that you still have to invite them to come to the audition, so i presume what were not talking about here is explicit, conscious bias. We want an orchestra that looks male. I assume its that when youre looking at the musician, you somehow your unconscious bias is saying im enjoying the music more as i watch and listen to this musician. And when you cant see the musician, youre going to have to decide whether youre enjoying the music more just by listening. Be. We have time for two more questions. Right there. Thank you. Your comments lead into a question i was going to ask. The sec was established to regulate stock markets, as you rightly point out, to essentially discourage people from exploiting or manipulating the markets. When you look at matching markets, okay, particularly those that involve human, humans in some fashion or another, what percentage of your effort entails steps to prevent people from exploiting or tricking the market . Well, think of a market like ebay. They built reputation systems and things like that. Some of it just to let you know that i pack things nicely and ship them properly, but some to stop frauds. If i have a long reputation, you can more confidently expect that ill, that when my goods arrive, theyll look like what the picture looked like, things like that. Think about payment security. Paypal grew up as sort of a credit card alternative when we werent sure that we liked having our credit card numbers into the internet. Because there were people who could intercept them and steal your money. So paypal was a different kind of payment mechanism that allowed you to just have your credit card sent once to paypal. College admissions. More and more Chinese Students are coming to american universities, and one of the questions that you want to know about Chinese Students is how well do they speak english. But when they take an english test in china, it turns out its hard to verify that the person [inaudible] is the one who took the test. So a company has grown up that conducts video interviews in english and that can be submitted along with the admittance package. They send you the video, but you see the person, theyve checked their identification, and when the person arrives, you can see whether thats who you anytimed and who took the english admitted and who took the english test. Those are examples of design that are intended to stop bad behavior. Last question. Right there. A number of people use dating services to find a number of people use dating services to find their matches online. Many other people just go about their daily business and one way or another find their spouses. And i was just wondering, are there any statistics over time that show one approach versus the other as being better for [laughter] positive outcomes . I dont do statistics like that, but you can clearly see over time that age of marriage in the United States has been rising. And i think that has to do with the fact that marketplaces have to be picked. So at the turn of the last century, the participation of women in Higher Education was much lower than that of men. What that meant was maybe you should marry your High School Sweetheart because when youre in high school, there are a lot of people the same age who are available, you can find someone you like, and when you go to college, there may not be so many women, and you might not be able to marry. But then as womens participation in Higher Education increased, you could have a thick market even in college, and so maybe you didnt have to marry your High School Sweetheart. You could take your time and meet other people in a big marketplace. And as womens participation in the labor force increased, then maybe you didnt even have to marry your college sweetheart. But, of course, it also might not be great to marry the perp in the cubicle next to you person the in the cubicle next to you because that could lead to all sorts of problems. So depending where you work, the marriage market might not be so thick after you get out. So is my guess is it has a lot to do with personal circumstance. If your marriage market isnt big, then the internet offers a possibility of a thick market. Now, dating markets are congested. Women with attractive photos on many dating sites get many more emails than they can answer, and so if men are sending emails and not getting them answered, one of the ways they sometimes respond is to send more emails, emails to different people, and when youre sending lots of emails, you cant look at the profiles and figure out if theres a soul match there, you just send a lot of emails which means theyre more and mor