Economics serving society

THE DESIGN OF MARKET PLACES - Recent development in matching theory and empirical methods of matching

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Allocation procedures have recently become a new and exciting field of economic research, with a wide range of applications. Since the seminal work by Gale and Shapley (1962) and Shapley and Shubik (1971), matching theory has developed and matured to a point where matching theorists could guide designs of medical match and other entry-level labor markets, school choice, course allocation and organ donation, among others. This course will introduce you to the frontier of research, including theoretical developments, applications, and empirical analysis

Important: within the context of the covid-19 international health crisis, the 2020 PSE Summer School has been cancelled


The course will provide a thorough presentation of the basics of the economics of matching both on theory and empirical grounds. The course will also present the frontier of knowledge in the field as well as the questions to be explored and will certainly be an important stepping stone for students who are planning to work on related topics.


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Graduates in economics with basics of game theory

How will professionals benefit from the programme

In recent years many administrations have used algorithms to assign “resources” such as students (the ministry of education via Affelnet, Parcoursup,…) or teachers to public schools, kidneys to patients with renal diseases (the ministry of health), civil servants to administrations (ministry of justice, ministry of education), and so on. The prior knowledge of matching theory is definitely useful when it turns to appropriately designing these algorithms. Further, administrations involved in policy evaluations may benefit from learning the most recent tools to assess the performance of assignment schemes.

How will students benefit from the programme

Matching theory has developed very quickly these last decades. There has been a large number of theoretical analyses and the theory matured to a point where matching theorists could make policy suggestions in key areas including education and health care, among others. There remains plenty of applications to explore. The course will provide MA/PhD students with the necessary knowledge both in theory as well as in econometrics to pursue academic work at the highest level.

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