Planet Money Summer School 6: When the markets need a designer
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Aug 6, 2025 
Join market design expert Alex Tadelboim from the University of Oxford and Alaskan deckhand Kirk Van Doren, known as Carcass, as they dive into the intricacies of market dynamics. They discuss how poorly designed markets can lead to dangerous situations, especially in Alaska's fishing industry. Tadelboim explains the role of market designers in ensuring fairness and efficiency, while Van Doren shares harrowing stories from fishing derbies that highlight both the thrill and risks involved. It's a captivating look at how smart design can save lives and enhance market functionality.
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Core Causes Of Market Failure
- Market failures often stem from information asymmetry, collusion, or fragmentation of participants.
- Designers fix them by encouraging competition, equal information, preventing collusion, and convening participants together.
Derby Days Drove Fishermen Into Danger
- In Homer, Alaska, the derby opened fishing for short windows, pushing everyone to risk dangerous weather for catches.
- Deckhand Kirk "Carcass" Van Doren survived sinking and repeated dangerous trips driven by derby incentives.
Rules Create Perverse Incentives
- Limiting time (derby) curbed overfishing but created deadly incentives to fish dangerously fast.
- Policy design must consider behavioral responses, not only the direct target like fish stock levels.