Are not happy. We get on the phone and call places in San Francisco and new york and say, we just got matched, we are ready to sign a contract but we wonder in before we sign what he had positions. They look at the rank order list at a look at that. I become we are talking to two different employers typically. They say look, shes better than some of those people we were assigned to match with. They figured sure, we just have an extra position, come on down. [inaudible] this was disruption. We had to restore stability of couples. Way to make sure we would ask couples what you want instead of asking him what your first choice, second choice of what your spouses first choice. We would ask what is your first choice as a couple . What pair of jobs would you like . What is your second choice . That presents a mathematical difficulty but into the ask that question you cant possibly give a couple what they want. The book is wonderful. Ucf hides ties all these things together. Its everything from why the oakland Football Team is called the sooners to why a turmoil country newborns are it goes on and on, these wonderful examples. Should we think of these as the are these anomalies with a matching doesnt quite work, is there a larger message for the people who read your book . What is the message you want your readers to take away from your book . I guess there are a couple of arguments. The simplest one is what you get from a reading of your guide to the for 20 to for a walk in the woods. You see the birth in a different way. Theres a variety of birds and they eat Different Things and they are built so they can catch fish or squirrels or gophers. So i would like people to look at mark is a little differently. Markets are not just the stock exchange. They are the farmers market. There are all sorts of ways we interact with each other that when you see them in the detail, you understand more about them. So, for example, let me describe to you how restaurants, different kinds of restaurants are organized to deal with congestion. After describe it to you, you will be able to tell me what color the tablecloth is a. Okay . The restaurant one, their suggestion is in the kitchen. So you need a reservation in order to get a seat at that restaurant. It takes a while for the food becomes the first are asked would you like some wine or cocktail . You place your order and to drink and converse and after while the food comes. Later youre asked if you want a cheese plate, and later the bill is brought to you and you put on your credit card and the server comes and goes. Theres a lot of interaction with the server and with the restaurant. They dont rush you typically. Restaurant number two doesnt take reservations. When you arrive you tell the hostess how big your party is education estimate, 20 minutes, and i will give you a pager and you Wander Around until your meal is ready. Not enter your meal is ready. Concert, until your table is ready. Vacancy just sung as summit gets up and leaves. As soon as you sit down, your order is immediately taken and quickly brought. And as youre finishing your dessert the check is put on the table and to get up with the go to the Cash Register of the front. The third restaurant is, you light up before cashier. You tell them what you want. You pay for it at the same time and now you carry your food to empty table and you eat better and then you bust your trip and you have only have one interaction with the rest on. Simultaneously you order what you want. Those are three restaurants to do with congestion giveaways. Restaurant one, or congestion is in the kitchen. They cant have more people in a restaurant in the kitchen the companies. Restaurant number two, they prepare a lot of it pretty well in advance and its tables that are in short supply. Number three is a fast food restaurant. They cook food before you go there and want to make your interaction fast say dont have to deal with them again. And, of course, the tablecloths are white at a fancy restaurant, and plastic checkered tablecloth that gets sponged clint at a restaurant with a serve as soon as someone else gets up. At the third restaurant is a mcdonalds, right . So the theme looking at different kinds of urgency that bird eats fish and that bird eats worms. Looking at different kinds of restaurant you can see how they all have to do with congestion. They have to do with matching their capacity to their customer. But whether congestion is matters and it tells you what color the tablecloth is. It does a lot of things about the restaurant. Want my hope is you look at markets anyways, see things as markets that you didnt see as markets before. Was the problem that needs to be solved in a matching business . What keeps you up at night . I can answer that perfectly for me and more generally for americans. I spent a lot of time on Kidney Exchange, so there are not at organ transplants. Like surgical colleagues, my economist colleagues and i felt her surgical colleagues do with whats now whats called Kidney Exchange. This real shortage of organs so its a shame not to use of those that are available. One way to these can become available is through living donation. If youre healthy, your two kidneys and you could remain healthy with one. If someone you loved was dying of Kidney Disease you could donate a kidney to them. To a more incompatible patient donor pairs cant engage in Kidney Exchange. Maybe you can give a kidney to the patient i love and i can give a kitty to the patient you love so that to transplants become available that were not available before. This is a market which we dont allow money to put any role. Its a felony and attended to by a kidney for transport. You cant buy a kidney from a donor. Thats a law that is almost universal in the west. The only country that has an explicitly legal market for kidneys is the Islamic Republic of iran. Although there are lots of black markets because its a transaction a lot of people like to engage in. There are people who are healthy, youre wealthy and they would like to have some money. And black markets tended to treat them very market very badly. The kidney a change, no money changes hands but its clearly a marketplace. Is good economics because people are engaging in exchange which they both profit, saved two lives and it obeys the law. I could do about a victory after victory. I devote a chapter in the book to Kidney Exchange. Weve had unexpected success in helping organize Kidney Exchange but these are victories in the war that we are still losing. There are 100,000 people waiting for kidneys and the train and we only get about 11,000 deceased donor kidneys, living kidneys. Ive also become very interested in this whole question of which things do about it is thought to be bought and sold and which do we not protect against the law to buy and sell kidneys. Its what i call a repugnant transaction, som some people lio engage in and the people who are not directly harmed by the transaction dont want to. Which you overturn double if youre in the legislature to . I would be prepared to endorse experiments to see what would have been better tried to design a carefully regulated market. What about were scummy tourist . We worry that the cash market would exploit would be a lesson. Thats a serious one. How do you know what is exploitation wind speed is exactly. When you look at the black markets its clear theres trafficking there. We are a country that is pretty powerful rule of law. Think about where we had alcohol consumption. The speakeasies where you would buy bootleg whiskey i very different from the fancy wine stores i can go to now and by chavanel 2012. Some markets would be different. When you see something thats against the law ever in the world cant make you think maybe we economist may be missing something. Where is your research adding . Im thinking a lot about school choice. Im thinking a lot about said not i would like to understand are also im also thinking about what makes a free market. Sometimes people think its hard to talk about markets as being designed. The New York Stock Exchange has lots of rules. The chicago board of trade has lots of rules, not just what kind of wheat goes into each trading pit, but whether youre about to try to some of those rules are produced by private providers and some are produced by government. There are government regulations to try to make markets safer. Make them work better. I think the political discussion better be focus on should there be regulation around and even who should provide it, but what kind of regulations help what kind of markets to work freely. This conversation could go on forever. The time has come. We will open it up for questions from the audience and i think theyre someone with a mic coming around. So, yes. Could you did you can pass it to your neighbor in front. 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 focus now. Is based upon china going to see your intern, that does look good. Youve got to go see doctor soandso who just happens to be somebody that he knows or who worked with before, Something Like that. Whereas doctor someone else down the road may be better for you. Is it possible, because you dont know who any of these people are, and neither does your interest. So the less you know about who they are think about matching childrens schools. High schools have preferences your children and comes to preference over schools and schools have parents over kids. In Many American cities we know have preferential choice in a number of cities. Many dont have preferences over schools and School Principals and no predictable in the assignment process. Thats more like assigning children to school places. What the school board does is it tries developing rules, priorities for which schools they they would be good for the kids they some kind of education is available. The families have preferences, but the schools children have priorities. Thats a kind of matching pages have preferences on one side. So perhaps, but you have to know something about the school, like where they are. You have to know something about the special is before you cant intelligibly do that. When we dont have any information, if we dont have information which would be good matches, we wont have a match thats run transparently and fairly, we assign some things by lottery. Gentlemen in front. Im in the health care industry, so irrelevant question. A relevant question. I deal with data on a daily basis and i get interoperability across emr is, seems like a market that we cant get one record into another place without Electronic Medical records within hospital, in terms of regulation or perhaps a system that could be in place. How do you see that in the marketplace . So its certainly a problem that i cant really my electronic records from boston to california when a move. I brought my records as flat paper and they were at some point in into this and but not in a surgical way. So thats a problem of interoperability. When we handle it is the government to try to set the standard for another is how many can compete on a potentially the one set of common industry standards, think about video recorders or video players with different standards to think about android as an authoring system, the reason edwards is a popular operating system and so is its rival for lots of different people can write apps for those. Loss of markets in which International Standards eventually emerged that allow people to trade over specific times but it can take a while. Its certainly taken a while in medicine. So that might be a role for government, but you know, the federal government wants to make a standardized and cramming language. The Defense Department originally imagined its goal is to make it all software written for the Defense Department should be programmed in but that fell by the wayside. Theres dangers in having the government try to figure out what [inaudible] health care in general is poorly designed into it because its been billed piecemeal, parts of an attitude chip and, of course, its a giant part of the economy so theres lots of institutions. By and large market decide is not a process that you start from scratch. Is a process that you going to try to make things a little better. And because its 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 a Large Companies that selfinsure. They capture the benefits when youre healthy as well as when youre health care doesnt cost so much. They are glad when youre helpinhealthy and work with thid party insurers mostly want things not to be too inexpensive. And, of course, those are expensive things and interest is set to pay for that. Medicare is set up to pay for that. Thats a giant part of medicare. Its harder to finance a clinic that would talk to diabetes patients about their nutrition in terms of controlling their disease. Thats hard to bill for and put under medical bills. So thats the kind of thing we are still having trouble with, because we pay for medicine as piecework. What parts of Representative Government do we have our matching markets, and how are they not matching markets speak with well, the federal government is a big employer, the labor markets our matching markets. They are certainly a big play labor markets. Parts of the federal government assigned people to jobs. The military gives people assignment when people graduate from the naval academy. They get to choose actually in rank order by class which service they will integrate the army has a different system. Theres a big problem in getting benefits to people who need them as other lots of federal benefits available that are hard to people access in an easy way. I was referring more to it like the people to choosing who are representatives are. I dont know that those are matching markets. They are clearly collective, problem is we can talk about elections. Start talking about ken arrow and the limit for aggregated votes of preferences. But you could certainly think about design problems come out of an elections should we require people to vote and that would give us better outcomes, should we make it more easily public who votes. It turns out who votes is available information and campaigns know whether your frequent voter or not. Should we conceal that . Theres lots of questions about data about who knows what, about what happened in the last election, things like that. We are sitting very data intensive campaigns know. It used to be when you got a phone call some about your a registered democrat or republican and want to let you know theres a president ial election coming up. Now youre likely t to get a congresswoman who voted for this candidate but who might not go to the polls without being reminded. They focus their attention on that. Theres lots of polling that goes on. Weve had some markets, it used to be the Election Results could be recorded for Eastern States before california polling places had closed. And not even listen on election night, the anchors will go through elaborate posturing as they say, dont know about the order in europe but [inaudible] whether new york went democrat or spirit exactly, exactly. Censure, michael weinstein, thank you, are connected to the robin hood foundation, lets have some fun with it. You are bringing together very wealthy people who, as you can tell the our, our motivator for Different Reasons to come and it could be social reasons and not necessarily concerns of people. And then you gather a lot of resources and have to outpace them. And how do you make choices, which charities are the most valuable, which advantage people to juicy benefiting and so on . How do you play with this as a market . So i regard this evening as let me say couple of words about markets. I often portray what i do at robin hood, i portrayed as a market. Into this market come ideas. People, Domestic Violence shelter or michael and programmed or a Job Training Program or Hep C Program are wouldve you want to do. Those ideas you are building winwin of the. They can come out of the heads of the report of the new times, i think that went on in san diego. We think we can do better. The ideas at the table, it just happens. Now the fun begins and now 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. Icy water as a marketer you are on the other side, the donor site, and we live by the same rules we live by at the New York Times. Theres a chinese law of robin hood between the donors and the brand maker. So we dont listen, our donors dont tell us how to spend the money. We put it through a disinterested set of algorithms to find a way to spend but i do want to turn this into a conversation about robin hood. In the back. Im interested in bias in matching markets and century book is called who gets what. When we think about google with a theres a big hiring labor market and increasingly public a lot of [inaudible] white people and men thats true and a lot of parts. [inaudible] could you talk about how we overcome that, how markets can become more fair . To us used to be a gender bis problem. That was by having blind auditions. You could do it for first violinist we see the people behind the screen playing, all plaintiffs in pieces or piece of the choosing. You could make your first decision based on how they think they sounded, rather than how they looked. So my colleague at harvard has looked at records of before and after when auditions were blind in this way. More women musicians were hired under blind auditions and under visible auditions. I presume incidentally used to have to invite them to come to the addition to what we are not talk about here is explicit conscious buyers. I assume its that when youre looking at t