Nobel Prize in economics recognizes 'market designers'
<p><span word="From">From</span> <span word="VOA">VOA</span> <span word="Learning">Learning</span> <span word="English">English</span>, <span word="this">this</span> <span word="is">is</span> <span word="the">the</span> <span word="Economics">Economics</span> <span word="Report">Report</span> <span word="in">in</span> <span word="Special">Special</span> <span word="English">English</span>.</p><p><span word="This">This</span> <span word="year">year</span>, <span word="the">the</span> <span word="Nobel">Nobel</span> <span word="Prize">Prize</span> <span word="for">for</span> <span word="economics">economics</span> <span word="recognizes">recognizes</span> <span word="two">two</span> <span word="Americans">Americans</span> <span word="for">for</span> <span word="their">their</span> <span word="work">work</span>. <span word="Staffan">Staffan</span> <span word="Normark">Normark</span>, <span word="Permanent">Permanent</span> <span word="Secretary">Secretary</span> <span word="of">of</span> <span word="the">the</span> <span word="Royal">Royal</span> <span word="Swedish">Swedish</span> <span word="Academy">Academy</span> <span word="of">of</span> <span word="Sciences">Sciences</span>, <span word="made">made</span> <span word="the">the</span> <span word="announcement">announcement</span> <span word="Monday">Monday</span>.</p><p>“<span word="The">The</span> <span word="Royal">Royal</span> <span word="Swedish">Swedish</span> <span word="Academy">Academy</span> <span word="of">of</span> <span word="Sciences">Sciences</span> <span word="has">has</span> <span word="decided">decided</span> <span word="to">to</span> <span word="award">award</span> <span word="the">the</span> <span word="Sveriges">Sveriges</span> <span word="Riksbank">Riksbank</span> <span word="Prize">Prize</span> <span word="in">in</span> <span word="Economic">Economic</span> <span word="Sciences">Sciences</span> <span word="in">in</span> <span word="Memory">Memory</span> <span word="of">of</span> <span word="Alfred">Alfred</span> <span word="Nobel">Nobel</span> 2012 <span word="to">to</span> <span word="Professor">Professor</span> <span word="Alvin">Alvin</span> <span word="Roth">Roth</span> <span word="at">at</span> <span word="Harvard">Harvard</span> <span word="University">University</span>, <span word="Cambridge">Cambridge</span>, <span word="Massachusetts">Massachusetts</span>, <span word="USA">USA</span>…<span word="And">And</span> <span word="to">to</span> <span word="Professor">Professor</span> <span word="Lloyd">Lloyd</span> <span word="S">S</span>. <span word="Shapley">Shapley</span> <span word="at">at</span> <span word="University">University</span> <span word="of">of</span> <span word="California">California</span> <span word="Los">Los</span> <span word="Angeles">Angeles</span>.”</p><p><span word="Staffan">Staffan</span> <span word="Normark">Normark</span> <span word="added">added</span> <span word="the">the</span> <span word="reason">reason</span> <span word="the">the</span> <span word="two">two</span> <span word="men">men</span> <span word="won">won</span> <span word="the">the</span> <span word="prize">prize</span>.</p><p>“<span word="For">For</span> <span word="the">the</span> <span word="theory">theory</span> <span word="of">of</span> <span word="stable">stable</span> <span word="allocation">allocation</span> <span word="and">and</span> <span word="the">the</span> <span word="practice">practice</span> <span word="of">of</span> <span word="market">market</span> <span word="design">design</span>.”</p><p><span word="The">The</span> <span word="Nobel">Nobel</span> <span word="Prize">Prize</span> <span word="in">in</span> <span word="economics">economics</span> <span word="is">is</span> <span word="often">often</span> <span word="awarded">awarded</span> <span word="for">for</span> <span word="discoveries">discoveries</span> <span word="in">in</span> <span word="how">how</span> <span word="markets">markets</span> <span word="work">work</span> <span word="or">or</span> <span word="how">how</span> <span word="market">market</span> <span word="actors">actors</span> <span word="behave">behave</span>. <span word="But">But</span> <span word="Alvin">Alvin</span> <span word="Roth">Roth</span> <span word="and">and</span> <span word="Lloyd">Lloyd</span> <span word="Shapley">Shapley</span> <span word="thought">thought</span> <span word="of">of</span> <span word="ways">ways</span> <span word="to">to</span> <span word="design">design</span> <span word="markets">markets</span>.</p><p><span word="Per">Per</span> <span word="Krusell">Krusell</span> <span word="of">of</span> <span word="the">the</span> <span word="Royal">Royal</span> <span word="Swedish">Swedish</span> <span word="Academy">Academy</span> <span word="of">of</span> <span word="Sciences">Sciences</span> <span word="explained">explained</span> <span word="it">it</span> <span word="this">this</span> <span word="way">way</span>.</p><p>“<span word="This">This</span> <span word="year">year</span>’<span word="s">s</span> <span word="prize">prize</span> <span word="in">in</span> <span word="economic">economic</span> <span word="sciences">sciences</span> <span word="is">is</span> <span word="about">about</span> <span word="economic">economic</span> <span word="engineering">engineering</span>. <span word="It">It</span>’<span word="s">s</span> <span word="about">about</span> <span word="how">how</span> <span word="to">to</span> <span word="practically">practically</span> <span word="design">design</span> <span word="certain">certain</span> <span word="markets">markets</span> <span word="so">so</span> <span word="that">that</span> <span word="they">they</span> <span word="work">work</span> <span word="well">well</span>.”</p><p><span word="Lloyd">Lloyd</span> <span word="Shapley">Shapley</span> <span word="worked">worked</span> <span word="with">with</span> <span word="David">David</span> <span word="Gale">Gale</span> <span word="on">on</span> <span word="a">a</span> <span word="research">research</span> <span word="project">project</span> <span word="in">in</span> <span word="the">the</span> 1960<span word="s">s</span>. <span word="It">It</span> <span word="dealt">dealt</span> <span word="with">with</span> <span word="how">how</span> <span word="to">to</span> <span word="match">match</span> <span word="up">up</span> <span word="ten">ten</span> <span word="men">men</span> <span word="and">and</span> <span word="ten">ten</span> <span word="women">women</span> <span word="in">in</span> <span word="strong">strong</span>, <span word="successful">successful</span> <span word="marriages">marriages</span>.</p><p><span word="The">The</span> <span word="two">two</span> <span word="researchers">researchers</span> <span word="developed">developed</span> <span word="an">an</span> <span word="algorithm">algorithm</span> <span word="or">or</span> <span word="mathematical">mathematical</span> <span word="formula">formula</span>. <span word="It">It</span> <span word="provided">provided</span> <span word="a">a</span> <span word="model">model</span> <span word="suggesting">suggesting</span> <span word="a">a</span> <span word="way">way</span> <span word="that">that</span> <span word="all">all</span> <span word="those">those</span> <span word="couples">couples</span> <span word="could">could</span> <span word="be">be</span> <span word="matched">matched</span> <span word="best">best</span>.</p>
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