In this chapter, we saw different tools and algorithms that are useful to solve different allocation problems; as the ones we saw in class (marriage market, house allocations).
Matching markets, has been a topic that has risen in recent years specifically after in 2012 Alvin E. Roth and Lloyd Shapley won the 2012 Nobel prize for the “Theory of stable allocations and the practice of market design”
What draws my attention, in the how this models can be used in everyday activities and problems. The perfect example is the kidney transfer problem:
Currently, they are around 100,000 people in the transplant list in the states. The waiting for a transplant can go even from 5 to 10 years.
Patients are prioritized by how long they’ve been waiting, their blood type, immune system and more factors. By having this set of rules and characteristics in the matching of the kidneys, this market can be seen as a complicated one.
The kidney transplant matching market that we saw, is interesting because it provides a solution and a more efficient way to help the market work in a faster way, where human lives can be saved.
An interesting point is to analyze how this models and tools can be used in different areas. Nowadays the technological development might bring opportunities to use this models in the problem solving or business development areas.
Thinking about it, many new popular apps are using matching model tools in their business.
Tinder- being a matching market between people (dating app).
Uber- being a matching market between travelers and drivers.
Airbnb- being a matching market between travelers and hosts
This tools can help us nowadays in everyday activities and problems.