Philip Mirowski and Edward Nik-Khah
- Published in print:
- 2017
- Published Online:
- June 2017
- ISBN:
- 9780190270056
- eISBN:
- 9780190270087
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190270056.003.0009
- Subject:
- Economics and Finance, History of Economic Thought
Implications of the various candidate models of information led to various problems in reconciliation with the previous microeconomic model; this chapter describes how the history took an unexpected ...
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Implications of the various candidate models of information led to various problems in reconciliation with the previous microeconomic model; this chapter describes how the history took an unexpected swerve toward mechanism design. We identify Leonid Hurwicz as the Cowles figure at the center of this change. Mechanism design in turn transmuted into market design, particularly at the hands of the experimentalist movement, members of which took responsibility for the first attempt to “go the market one better,” the design of airport slot auctions.Less
Implications of the various candidate models of information led to various problems in reconciliation with the previous microeconomic model; this chapter describes how the history took an unexpected swerve toward mechanism design. We identify Leonid Hurwicz as the Cowles figure at the center of this change. Mechanism design in turn transmuted into market design, particularly at the hands of the experimentalist movement, members of which took responsibility for the first attempt to “go the market one better,” the design of airport slot auctions.
Philip Mirowski and Edward Nik-Khah
- Published in print:
- 2017
- Published Online:
- June 2017
- ISBN:
- 9780190270056
- eISBN:
- 9780190270087
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190270056.003.0011
- Subject:
- Economics and Finance, History of Economic Thought
This chapter describes the first of three chronological schools of market design, in this chapter the Walrasian School. The primary examples come from work by Leonid Hurwicz and Stanley Reiter. The ...
More
This chapter describes the first of three chronological schools of market design, in this chapter the Walrasian School. The primary examples come from work by Leonid Hurwicz and Stanley Reiter. The starting point for this approach was the thing-like version of information characteristic of Shannon. We discuss the design task dictated by this approach, as well as the reasons for the eventual failure of this school of design.Less
This chapter describes the first of three chronological schools of market design, in this chapter the Walrasian School. The primary examples come from work by Leonid Hurwicz and Stanley Reiter. The starting point for this approach was the thing-like version of information characteristic of Shannon. We discuss the design task dictated by this approach, as well as the reasons for the eventual failure of this school of design.
Philip Mirowski and Edward Nik-Khah
- Published in print:
- 2017
- Published Online:
- June 2017
- ISBN:
- 9780190270056
- eISBN:
- 9780190270087
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190270056.003.0010
- Subject:
- Economics and Finance, History of Economic Thought
Curiously, early neoclassical economics was a theory of agents, not markets as such. But changes in markets in the late twentieth century began to highlight this lacuna. How information was ...
More
Curiously, early neoclassical economics was a theory of agents, not markets as such. But changes in markets in the late twentieth century began to highlight this lacuna. How information was incorporated into the theory began to suggest that economists could not just describe The Market, but could also design boutique markets for clients. We trace the resulting narrative trajectory of this epoch-making departure using an abstract Information Space graphic showing combinations of types of agent epistemology, with different types of models of information.Less
Curiously, early neoclassical economics was a theory of agents, not markets as such. But changes in markets in the late twentieth century began to highlight this lacuna. How information was incorporated into the theory began to suggest that economists could not just describe The Market, but could also design boutique markets for clients. We trace the resulting narrative trajectory of this epoch-making departure using an abstract Information Space graphic showing combinations of types of agent epistemology, with different types of models of information.