ECON3305 Market Design
Department of Economics, Boston College
Fall 2015
Instructor: Zafer Kanik
E-mail: kanik@bc.edu
Lectures: MWF 2:00-2:50 p.m., O'Neill Library 253
Office: Maloney Hall, 3rd Fl., D333
Office Hours: WF 1:00-2:00 p.m.
Course Description
This is an introductory-level course on matching theory and market design. It aims to provide
students with fundamental concepts of matching and allocation problems in the absence of
monetary transfers. In this course we will cover standard models of one-sided and two-sided
matching. The focus of the course is both introducing students to the matching theory as well as
exploring real-life market design applications such as on-campus housing, school choice and
kidney exchange.
Reference Reading
1.
“Matching, Allocation and Exchange of Discrete Resources”, Tayfun Sönmez and Utku
Unver, in J. Benhabib, A. Bisin, and M. Jackson (eds) Handbook of Social Economics, Vol 1A.
The Netherlands: North-Holland, 781-852, 2011.
2.
“Matching Markets: Theory and Practice”, Tayfun Sönmez and Atila Abdulkadiroğlu.
Advances in Economics and Econometrics, Vol. 1, Cambridge, 3-47, 2013.
3.
“Matching”, Tayfun Sönmez, Muriel Niederle and Alvin Roth. The New Palgrave
Dictionary of Economics, 2nd edition, Eds. Steven N. Durlauf and Lawrence E. Blume, Palgrave
Macmillan, 2008.
4.
“Market Design for Kidney Exchange”, Tayfun Sönmez and Utku Unver. Oxford
Handbook of Market Design, Oxford, 2013.
5.
“Two-Sided Matching: A Study in Game-Theoretic Modeling and Analysis”, A.E. Roth
and M.A.O. Sotomayor, Cambridge University Press, 1990 (Econometric Society Monograph
Series)
Grading and Course Requirements
20%: Attendance, in-class participation and problem sets
20%: Midterm exam (on Wednesday, October 21, in-class)
20%: In-class presentation of a chosen paper
20%: Project on real-life market design application (the due date is Wednesday, December 9)
20%: Final exam (on Monday, December 14, 9:00 a.m.)
- Each in-class presentation will be a group presentation. Each group will consist of three students.
- The problem sets will be weighted equally, and the lowest problem set score will be dropped.
Disability Services
If you are a student with a documented learning disability seeking reasonable accommodations in
this course, please contact the Connors Family Learning Center (617-552-8093); regarding all
other types of disabilities, please contact the Disability Services Office (617-552-3470).
Academic Integrity
Academic dishonesty is not tolerated in any form. Please see the university’s policies and
procedures regarding academic integrity.
http://www.bc.edu/offices/stserv/academic/integrity/
Schedule
1. One-to-One matching problems.
2. One-to-One matching problems: Incentives.
3. Many-to-One matching problems.
4. Housing markets and house allocation
5. School matching
6. Organ exchange
7. Networks and matching
Market Design - Fall 2015
Tentative Course Schedule
#1

Mon, Aug 31
Introduction to Market Design
#2

Wed, Sept 2
One-to-one matching
#3

Fri, Sept. 4
One-to-one matching
Labor Day – Monday, Sept. 7
#4 Wed, Sept. 9

One-to-one matching
#5

Fri, Sept. 11
One-to-one matching
#6

Mon, Sept. 14
One-to-one matching: Incentives
#7

Wed, Sept. 16
Many-to-one matching
#8

Fri, Sept. 18
Many-to-one matching
#9

Mon, Sept. 21
Many-to-one matching
#10 Wed, Sept. 23

House allocation & Housing Markets
#11 Fri, Sept. 25

House allocation & Housing Markets
#12 Mon, Sept. 28

House allocation &Housing Markets
#13 Wed, Sept. 30

House allocation & Housing Markets
#14 Fri, Oct. 2

House allocation & Housing Markets

#15 Mon, Oct. 5

School Matching
#16 Wed. Oct. 7

School Matching
#17 Fri, Oct. 9

School Matching
October 12, Monday, Columbus Day
#18 Wed, Oct. 14

School Matching
#19 Fri, Oct 16

School Matching
#20 Mon, Oct 19

School Matching
#21 Wed, Oct 21

MIDTERM
#22 Fri, Oct 23

Introduction to Organ Exchange
#23 Mon, Oct 26

Organ Exchange
#24 Wed, Oct 28

Organ Exchange
#25 Fri, Oct 30

Organ Exchange
#26 Mon, Nov 2

Organ Exchange
#27 Wed, Nov 4

Organ Exchange
#28 Fri, Nov 6

Networks and Matching
#29 Mon, Nov 9

Networks and Matching
#30 Wed, Nov 11

Networks and Matching
#31 Fri, Nov 13

Networks and Matching
#32 Mon, Nov 16 - In-class Presentation 1
#33 Wed, Nov 18 - In-class Presentation 2
#34 Fri, Nov 20
- In-class Presentation 3
#35 Mon, Nov 23 - In-class Presentation 4
Thanksgiving Break – Wed, Nov 25 – Fri, Nov 27
#36 Mon, Nov 30 - In-class Presentation 5
#37 Wed, Dec 2
- In-class Presentation 6
#38 Fri, Dec 4
- In-class Presentation 7
#39 Mon, Dec 7
- In-class Presentation 8
#40 Wed, Dec 9
- In-class Presentation 9, The due date of class project