market design
/ˈmɑːrkɪt dɪˈzaɪn/ · mar·ket de·sign
noun
- A subfield of economics that studies how to create rules and structures for markets so that resources are allocated efficiently and fairly. She earned her PhD in market design, focusing on matching algorithms for school admissions.
- The process of planning and constructing a market’s institutional framework, including pricing rules, allocation mechanisms, and participant incentives. The government hired consultants for the market design of the new carbon‑credit trading system.
Synonyms
market engineeringmechanism designauction designexchange designallocation designinstitutional designeconomic designmarket structuring
Antonyms
Did you know? The 2020 Nobel Prize in Economic Sciences was awarded to Paul Milgrom and Robert Wilson for their work in market design, which revolutionized spectrum auctions worldwide.