ABSTRACT

Where economists previously viewed the market as arising from a ‘spontaneous order’, antithetical to design, they now design markets to achieve specific purposes. This paper reconstructs how this change in what markets are and can do came about and considers some consequences. Two decisive developments in economic theory are identified: first, Hurwicz’s view of institutions as mechanisms, which should be designed to align incentives with social goals; and second, the notion of marketplaces – consisting of infrastructure and algorithms – which should be designed to exhibit stable properties. These developments have empowered economists to create marketplaces for specific purposes, by designing appropriate algorithms. I argue that this power to create marketplaces requires a shift in ethical reasoning, from whether markets should reach into certain spheres of life, to how market algorithms should be designed. I exemplify this shift, focusing on bias, and arguing that transparency should become a goal of market design.

摘要

经济学家以前认为市场是由“自发秩序”产生的，与设计相反，现在他们设计市场是为了实现特定目的。本文重构了这种市场现状和可以做的变化是如何发生的，并考虑了一些后果。确定了经济理论的两个决定性发展：第一，Hurwicz 将制度视为机制的观点，其设计应使激励与社会目标保持一致；其次，市场的概念——由基础设施和算法组成——应该被设计成表现出稳定的特性。这些发展使经济学家能够通过设计适当的算法为特定目的创建市场。我认为这种创造市场的力量需要伦理推理的转变，从市场是否应该进入某些生活领域，市场算法应该如何设计。我举例说明了这种转变，关注偏见，并认为透明度应该成为市场设计的目标。