Market Design, Human Behavior, and Management

2020/09/09 by Yan Chen, Peter Cramton, John A. List +1 · 52 citations
Decision Sciences · Social Sciences · #Auction Theory and Applications #Behavioral economics #Business #Computational economics #Economics #Experimental Behavioral Economics Studies #Experimental economics #Game Theory and Applications #Management science #Marketing #Matching (statistics) #Microeconomics #Reputation #Social science #Sociology

paper · doi:10.1287/mnsc.2020.3659

published in Management Science 67(9), 5317-5348 (Institute for Operations Research and the Management Sciences)

openalex publication_date 2020/09/09 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/06

Abstract

We review past research and discuss future directions on how the vibrant research areas of market design and behavioral economics have influenced and will continue to impact the science and practice of management in both the private and public sectors. Using examples from various auction markets, reputation and feedback systems in online markets, matching markets in education, and labor markets, we demonstrate that combining market design theory, behavioral insights, and experimental methods can lead to fruitful implementation of superior market designs in practice. This paper was accepted by David Simchi-Levi, Special Section of Management Science: 65th Anniversary.

Citations

• Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence
• Machiavelli and the Gale-Shapley Algorithm
• Rank-Order Tournaments as Optimum Labor Contracts
• Overconfidence and Excess Entry: An Experimental Approach
• Prospect Theory: An Analysis of Decision under Risk
• Individual and Corporate Social Responsibility
• School Admissions Reform in Chicago and England: Comparing Mechanisms by their Vulnerability to Manipulation
• College Admissions and the Stability of Marriage

Cited by

• Algorithmic Management and the Social Order of Digital Markets
• Spectrum Auctions: Designing markets to benefit the public, industry and the economy

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