markets design

Market design is the study of how to organize and structure markets to ensure they operate efficiently, fairly, and effectively. It involves creating rules, procedures, and mechanisms that facilitate the exchange of goods, services, or resources between participants. For example, setting up auction formats, matching students to schools, or allocating scarce resources like organs or spectrum. Good market design considers incentives, information flow, and potential strategic behavior to achieve desired outcomes, such as fair access, low costs, or optimal resource use. It combines economics, game theory, and policy to create better functioning markets.