ECON3305 Market Design
Department of Economics, Boston College
Spring 2016
Instructor: Zafer Kanik
E-mail: kanik@bc.edu
Lectures: MWF 2:00-2:50 p.m., Gasson Hall 201
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
15%: Problem sets and in-class participation
25%: Midterm exam (on Monday, February 29, in-class)
15%: In-class presentation of a chosen paper
15%: Project on real-life market design application (the due date is Wednesday, May 4)
30%: Final exam
- 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.html
Schedule
1. One-to-One matching problems.
2. One-to-One matching problems: Incentives.
3. Many-to-One matching problems.
4. House allocation and housing markets
5. School matching
6. Organ exchange
7. Networks and matching
Market Design - Spring 2016
Tentative Course Schedule
#1

Wed., Jan. 20
Introduction to Market Design
#2

Fri., Jan. 22
One-to-one matching
#3

Mon., Jan. 25
One-to-one matching
#4

Wed., Jan. 27
One-to-one matching
#5

Fri., Jan. 29
One-to-one matching
#6

Mon., Feb. 1
One-to-one matching: Incentives
#7

Wed., Feb. 3
Many-to-one matching: College Admissions Problem
#8

Fri., Feb. 5
Many-to-one matching: College Admissions Problem
#9

Mon., Feb. 8
Discussion
#10 Wed., Feb. 10

House Allocation & Housing Markets
#11 Fri., Feb. 12

House Allocation & Housing Markets
#12 Mon., Feb. 15

House Allocation &Housing Markets
#13 Wed., Feb. 17

House Allocation & Housing Markets
#14 Fri., Feb. 19

House Allocation & Housing Markets
#15 Mon., Feb. 22

Student Placement Problem
#16 Wed., Feb. 24

Student Placement Problem
#17 Fri., Feb. 26

Student Placement Problem
#18 Mon., Feb. 29

MIDTERM EXAM
#19 Wed., Mar. 2

School Matching
#20 Fri., Mar. 4

School Matching
Mon, Mar. 7 - No Class - Spring Vacation
Wed, Mar. 9 - No Class - Spring Vacation
Fri, Mar. 11 - No Class - Spring Vacation
#21 Mon., Mar. 14

School Matching
#22 Wed., Mar. 16

School Matching
#23 Fri., Mar. 18

School Matching
#24 Mon., Mar. 21

School Matching
#25 Wed., Mar. 23

Discussion
Fri., Mar. 25 - No Class
Mon., Mar. 28 - No Class
#26 Wed., Mar. 30

Organ Exchange
#27 Fri., Apr. 1

Organ Exchange
#28 Mon., Apr. 4

Organ Exchange
#29 Wed., Apr. 6

Organ Exchange
#30 Fri., Apr. 8

Organ Exchange
#31 Mon., Apr. 11

Organ Exchange
#32 Wed., Apr. 13

Networks and Matching
#33 Fri., Apr. 15

Networks and Matching
Mon., Apr. 18 - No Class
#34 Wed., Apr. 20

Networks and Matching
#35 Fri., Apr. 22

In Class Presentations - 1
#36 Mon., Apr. 25

In Class Presentations - 2
#37 Wed., Apr. 27

In Class Presentations - 3
#38 Fri., Apr. 29

In Class Presentations - 4
#39 Mon., May 2

In Class Presentations - 5
#40 Wed., May 4

Discussion