Alvin Roth and Lloyd Shapley Awarded the Nobel Prize in Economics
The 2012 Nobel prize for economics celebrated the new field of Market Design. Lloyd Shapley - a mathematician - wrote the first analyses that made the development of this field possible. Alvin Roth not only advanced the theory but also put the new market design analyses to work in important matching applications, including one for assigning kidneys to patients and others for assigning students to schools in NYC and Boston.
Al Roth and Paul Milgrom had designed and co-taught the first course on Market Design at Harvard and MIT in the years 2000 and 2001. Paul and his wife, Eva, were part of the Roth entourage in Stockholm and can be seen below with Al and Emilie Roth at the Grand Hotel, just before their departure for the Nobel prize ceremonies.