A Testbed Experiment of a (Smart) Market Based, Student Transportation Policy: Non Convexities, Coordination, Non Existence

41 Pages Posted: 30 Jan 2018 Last revised: 12 Feb 2018

See all articles by Hsing Lee

Hsing Lee

California Institute of Technology

Travis Maron

California Institute of Technology - Division of the Humanities and Social Sciences

Charles R. Plott

California Institute of Technology - Division of the Humanities and Social Sciences

Han Seo

California Institute of Technology

Date Written: January 1, 2018

Abstract

The paper develops a decentralized mechanism for allocations and pricing under economic conditions that traditionally dictate administrative policies as solutions. Because of complex coordination problems, thin markets, and non-convexities including zero marginal cost due to lumpy transportation capacities, classical theory holds that classical market organization cannot succeed. The mechanism is designed for a specific, complex application. It rests on an assignment model guided by a computational process that enforces rules and channels information feedback to participants. Special testbed experimental methods developed for the application produce high levels of efficiency under conditions that amplify anticipated field challenges.

Keywords: smart market, transportation, market design, non convexities, coordination

JEL Classification: D, H, C78, R48, P9

Suggested Citation

Lee, Hsing and Maron, Travis and Plott, Charles R. and Seo, Han, A Testbed Experiment of a (Smart) Market Based, Student Transportation Policy: Non Convexities, Coordination, Non Existence (January 1, 2018). Available at SSRN: https://ssrn.com/abstract=3109291 or http://dx.doi.org/10.2139/ssrn.3109291

Hsing Lee

California Institute of Technology ( email )

Pasadena, CA 91125
United States

Travis Maron

California Institute of Technology - Division of the Humanities and Social Sciences ( email )

1200 East California Blvd.
Pasadena, CA 91125
United States

Charles R. Plott (Contact Author)

California Institute of Technology - Division of the Humanities and Social Sciences ( email )

1200 East California Blvd.
337 Baxter Hall
Pasadena, CA 91125
United States
626-395-4209 (Phone)

Han Seo

California Institute of Technology ( email )

Pasadena, CA 91125
United States

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