Simon Johnson has this amazing title criticizing the recent Libor case.
Archive for July 6th, 2012
A super post on econ history by Catherine Rampell of Economix Blog.
She puts up a photo of a NY Herald clip of 1837 which is just amazing and so true even today.
The paper shows how econ dept of Arizona State Univ used auction theory to allocate offices to faculty. The Univ built a new building and some rooms had a outside view with a window and others had no windows. The former were in higher demand but such rooms were limited in supply. The result was chaos.
Diff. departments adopted different strategies but the allocation was inefficient. Faculty criticized and grumbled after each allocation.
The econ dept used a bit of economics.