Another one of those interesting questions is whether the pricing system must be equivalent to currency exchange. To what extent are the traditional modes of transaction a legacy of the limitations behind physical coinage, and what degrees of freedom are offered by ubiquitous computation and connectivity? Etc. (I have a lot of questions.)
Results like the Second Welfare Theorem (every efficient allocation can be implemented via competitive equilibrium after some lump-sum transfers) suggests it must be equivalent in theory.
Eric Budish has done some interesting work changing the course allocation system at Wharton to use general equilibrium theory behind the scenes. In the previous system, courses were allocated via a fake money auction where students had to actually make bids. In the new system, students submit preferences and the allocation is computed as the equilibrium starting from “equal incomes”.
What benefits do you think a different system might provide, or what problems does monetary exchange have that you’re trying to avoid? Extra computation and connectivity should just open opportunities for new markets and dynamic pricing, rather than suggest we need something new.
This looks very useful. Thanks!
Another one of those interesting questions is whether the pricing system must be equivalent to currency exchange. To what extent are the traditional modes of transaction a legacy of the limitations behind physical coinage, and what degrees of freedom are offered by ubiquitous computation and connectivity? Etc. (I have a lot of questions.)
Results like the Second Welfare Theorem (every efficient allocation can be implemented via competitive equilibrium after some lump-sum transfers) suggests it must be equivalent in theory.
Eric Budish has done some interesting work changing the course allocation system at Wharton to use general equilibrium theory behind the scenes. In the previous system, courses were allocated via a fake money auction where students had to actually make bids. In the new system, students submit preferences and the allocation is computed as the equilibrium starting from “equal incomes”.
What benefits do you think a different system might provide, or what problems does monetary exchange have that you’re trying to avoid? Extra computation and connectivity should just open opportunities for new markets and dynamic pricing, rather than suggest we need something new.