Lecture, three hours; discussion, one hour. Requisites: courses 11, 101. Enforced corequisite: course 106DL. Discussion of markets and other institutions that were purposefully designed, mostly by economists. Choices designers face when designing such markets. Markets and their context and corresponding economic models. Topics include matching between medical residents and hospitals, matching between high school students and New York and Boston high schools, kidney transplants, course allocation in business schools, eBay auctions, and prediction markets. Examination of how to optimize one's actions and outcomes in such markets. P/NP or letter grading.

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