More Principals of Economics

David Warsh of Economic Principals has a nice piece on the Nobel Prize winners, Al Roth and Lloyd Shapley.   You may have heard something about Roth, and Warsh describes him as immediately relevant to modern market making:

[H]e is surrounded by generations of students and researchers, some of them computer scientists, working on all kinds of cutting-edge topics.  These include circuit breakers (forced trading halts) in panicked markets, random assignments in long waiting lines, school choice, new wrinkles in the auction of broadcast spectrum rights, corporate restructuring refinements and all manner of other market processes, anything, in other words, that might be improved by a little engineering.

As for Shapley, I didn’t know much about him beyond my familiarity with the Shapley Value.  It turns out Shapley kept rather spectacular company, including the likes of John Von Neumann and John Nash.   Robert Aumann called him the “greatest mathematical game theorist.”  Wow.

You’ll definitely learn something from reading this piece.

More here.  Cool.