The Sciences Po Center for Entrepreneurship is launching a market design workshop for
innovators and entrepreneurs. The goal of this workshop is to use market design concepts to
propose innovative approaches to existing market or allocation problems. The market design
theory applied to complex problems is perceived as the first step to high innovations based
on algorithms. The output of the workshop will be to produce practical recommendations that
may lead to specific innovations.
Market Design overview:
Over the past two decades, economic research and ideas have played an increased
role in the practical organization and design of markets. Some examples include
tradable permit systems for pollution abatement and other environmental regulations;
internet search advertising; market mechanisms for innovation; labor market
clearinghouses; centralized systems for the allocation of organs; formal procedures
for student assignment; and other related matching and trading processes. In each of
these cases, both theory and empirical and experimental research have influenced
the design of market institutions.
"Market design" examines the reasons why markets institutions fail and considers the
properties of alternative mechanisms, in terms of efficiency, fairness, incentives, and
complexity. Research on market design is influenced by ideas from industrial
organization and microeconomic theory; it brings together theoretical, empirical, and
experimental methods, with an aim of studying policy-relevant trade-offs with practical
consequences. (National Bureau of Economic Research definition).
This 12-hours workshop (6x2hours) will enable you to understand the methodology of
problem solving through economics and market design. It will be organized in 3 parts:
1/ Presentation of some ideas of market design with the goal of improving a particular and
well known market.
2/ Collection of detailed information about the market we are trying to improve, and the
problems it faces. The case study chosen by the teachers will address problems that
students are facing during their education at Sciences Po.
3/ Thinking about a market design solution to these problems, and making recommendations
on how to implement this solution.
The success of the workshop will be very dependent on everyone’s participation and
personal work (about a dozen hours), but the project will require teamwork and a diversity of
profiles.
The course is open to students from all the master’s programs.
Please note that:
w It will be useful for some of the participants to have a quantitative background, and/or
knowledge in economics or computer sciences or engineering – programming
skills: R/Matlab / Python & SQL / EXCEL.
w It will be useful for some of the participants to have an academic background in
marketing or business development.
w Level C1 in English is required as all the readings will be in English.
A selection will be made by the 2 teachers and the Sciences Po Center for Entrepreneurship
as registrations are limited to 15 students.
ECTS : 4 (pass or fail)
Teachers:
Eduardo Perez-Richet
PhD in economics from Stanford University. He has joined the department of economics at
Sciences Po in September 2016. He is also affiliated to the Center for Economic Policy
Research (CEPR). He has taught at Ecole Polytechnique and Columbia University. His
research has been distinguished by the young economist prize of the Banque de France. His
research is in information economics, political economy, game theory and social networks.
Recently, he has worked on the optimal design of information structures, and on modelling
altruism networks.
Edoardo Ciscato
PhD candidate at the Department of Economics of Sciences Po. His supervisors are JeanMarc Robin and Alfred Galichon,
and his main fields of research are household economics, labor supply, marriage and
divorce. His work aims to develop empirical applications of search and matching theory to stu
dy issues related to family and labor. More
information: https://sites.google.com/site/ciscatoedoardo/
First session will take place on Thursday February 9th, from 14:45 to 16:45 and the
coming sessions will be determined with the two teachers during the first session.
Should you be interested, please let us know by Tuesday January 31st at 3.00 in the
afternoon at the latest, and attaching your relevant grade transcripts so that we will
complete your registrations.