Lab experiments and market design

Alvin Roth is a Nobel Prizewinning Economist whose work on designing markets has had real world impacts that may have saved thousands of lives around the world, while arousing strong emotions both for and against the programs he has helped put in place. Clearly not one to shy away from controversy, he represents the best of what The Origins Project is trying to promote: applying science and reason to public policy. In short, connecting science and culture!

Roth’s new book, which is fantastic, and comes out the same day this podcast is released deals with issues that often raise the public’s ire, from legalizing prostitution, to assisted suicide, and finally to a rational market for kidney transplants. For example, everywhere there is good date, legalizing prostitution reduces not only incidents of sexually transmitted disease, but also violent sexual assaults. It may also combat illegal human trafficking. As far as kidney transplants are concerned, in the US alone, over 130,000 kidney failures occur each year, and only 20,000-30,000 transplants are performed, because of a lack of suitable kidney donors. Roth has already helped resolve one bottleneck, connecting donors with those in need, through a kidney exchange, which is actually more complicated than it may seem due to medical incompatibilities even within closely related individuals. More generally, not only could lives be saved, but as he shows, it would save considerable money if a rational system of reimbursing prospective donors could be devised.

Beyond his remarkable work tying empirical testing to theoretical ideas, as a human being, Roth is a saint. I have direct knowledge of this. On the day this podcast was recorded, we had an amazing 3 hour dialogue… one of the best I have had. Only problem was, I forgot to press record! We lost it all. With patience and grace that I never expected, Roth agreed to re-record another podcast on the same day. A friend of mine told me was a mensch. But I never expected that. I am eternally grateful, and I hope you will thoroughly enjoy, and have your perspective of the world altered by my conversation with this remarkable gentleman and scholar. Enjoy!

As always, an ad-free video version of this podcast is also available to paid Critical Mass subscribers. Your subscriptions support the non-profit Origins Project Foundation, which produces the podcast. The audio version is available free on the Critical Mass site and on all podcast sites, and the video version will also be available on the Origins Project YouTube.