Actually to switch cotton production to Food Production. In fact what everybody realizes especially in the blockade in 1861s were probably not going to get our cotton out of here anyway, we all know about Jefferson Davis king cotton diplomacy and withhold our cotton and force britain and france to come in on our side so they can get our cotton, of of course they start getting conned from india and brazil, and egypt and elsewhere. Thats out of my realm, i dont know. But what will happen during the war itself is that the State Government in order to feed the massive armies and the population, they will call on farmers to actually switch production from cotton to Corn Production and other foodstuffs as well. In fact i fact i saw a very interesting piece of letterhead, i was doing some research and a letter was written in february 19, 1862 and the letter had had cornstalks and it said cotton is no longer king, corn is king now. It was the effort of course to get people to switch from comp production to Food Production that can be used internally in the confederacy. , be able to expand on this better than me, during that time his troops to come into mississippi tell us about the contraband cant. There were a number of contraband camps that would spring up around the country and they would congregate for the protection of the army. Most of the times the cans were massive a general dodge veneers commander at that time, he called for an organized camp, real houses, frame houses their main streets. Most of the men are paid to work on the fortifications that are continued to be built right up until that time when the union believes in january 81064. So it is a successful model camp, but unfortunately when the Union Presence ended, and general sherman needed the troops troops for his Marine Campaign without the protection of the army of the culture reigns as they were known were taken by train to none as and put into different camps there and those were those nasty definitely not up to the standards. With another person at the podium. I was curious if you could explain the Successful Use of my name to bridge fortifications. Im not sure if youre aware of this, but the First Successful detonation was at the siege of vicksburg. They were to mind detonations on june 25th 1863 and the other on july 1st of 1863. And both of these actually occurred at the head of logans approach. The mind than themselves, especially when speaking about the june 25th mind might be classified as though successful at and a failure at the same time. Why was it a failure . Most obviously the preachers never exploited. They tried especially on july 1st they just got needed the mind and didnt actually make an attack. As i said on the 25th of june of 1863, the troops that did rush in and try to exploit the breach reported mainly by the single rocket, the chief old engineer with the confederate defenses to counter the particular attack and organize the resistance. The successful component of this all was they werent sure if they could successfully detonated a mine underneath the defenses of vicksburg and the individual responsible for debt made in the mind was from ohio who had been a prewar civil engineer. He had no professional training or military training whatsoever. The artillery battery captain i believe served at shiloh if im not mistaken and eventually was promoted to be an engineer at the 17th army corps amnesty says in his own account relate the military training he acquired with selftaught from different price point treatises, maybe those by Dennis Mulholland so i hope that answers your question about the vicksburg mine explosions. We have another question. The first question is ,com,com ma what with civilian life actually like and what misperceptions and to be clarified regarding civilian life during the civil war and most people you speak to will say everyone owned slaves and everyone was a plantation owner. Those are just two misconceptions i am aware of. The second question with the modern development of a lot of Rural Communities what means are there to preserve adult sites advise an important we preserve them for children to be exposed to those historic sites. I bet they could answer the question number two. Delay with a bit Civil War Battlefields is extremely important. The nation that doesnt remember its heritage is doomed to fail or something and we know from history we are bound to repeat our mistakes and so on. Battlefields are very special places. Obviously people died therein for that reason and another self it is a special place. You can learn from them of course. One of the reasons that the original battlefield for set up in 1890s and fact with a military military leadership reason that officers from the United States military would come back to this battlefields and connect over called staff raised and obviously they rode horses and most days. When i was at shiloh i did numerous staff write that various military units. Some of them that was really interesting the 101st airborne with parachuted to do their staff ratings. But they learned the lessons of history. Obviously tactics and weaponry and all of that has changed over time. But the basic principles of war that are timeless and never ending and just as relevant today as they were for Julius Caesar 2000 years ago, they dont change over time. In the thick surprise and mass forces and have a clear object is. So you can learn those on a battlefield today. Another aspect in terms of the historic of research and writing made the comment as the best source i had for writing the history of shiloh was the battlefield of shiloh itself. Im a Firm Believer you have to understand the battlefield if you understand the battle. I am dealing with that right now working on this book with fort donaldson. Fort donaldson was not preserved until the 1920s, the late 1920s and as a result the veterans were not there to come back and say this is where our unit was. This is where we were positioned and worse or didnt happen so the gap of 30, 40, whatever years, you lose a lot there and as a result it is much more difficult to pinpoint specific things at fort donaldson that it was at shiloh. Shiloh kind of spoiled male little bit. For that reason its very as well as make it a shout out to the civil war trust. If youre not familiar, they do amazing work in preserving Civil War Battlefields all around the nations. Mike, you have a lot of civilian that vicksburg who burrowed into the ground and were always subject to two mortar fire coming from david porters skies. Tell us how the civilians dealt with it. Well, the smart civilians left in that was a pattern throughout the state that a lot of a lot of people want to live with relatives and say alabama, tennessee may be. The common rule of thumb seems to be among Union Soldiers if they found it and the house they tended to burn it. If people stayed behind and showed the willingness to stand up for what they believed in and stand up for their property, most of the times they lived those houses alone. Those were not written orders they were following. It just seemed to be the pattern. At vicksburg, the life and case was very real. I think they get a lot of publicity that people think is just stories that people make a. I think there are at least two caves over there still identified in still in existence but they will not let you go when they and you shouldnt want to. So they are not barred to them they are not part of the park or anything. They are just the bare and people that live over there a long time, they can tell you exactly where they are. Those caves were kind of fancy places in some instances. They might have three or four rooms back in their. So it was interesting dilemma for these people. Sometimes the union army would stop showing during the siege and they usually had a certain amount of time that they would quit doing that. And when they did, the civilians understood that said they would come out of the caves, run home and see if home is still there and then get back to the case as quickly as they could. A lot of the homes were damaged. Some more so than others. Its an interesting fact that there is not nearly as much damage in this treat the vicksburg and the homes as you might expect schelling. Even the Union Soldiers at the reservoir a bar damage on. I dont know if thats a something about the marksmanship of the union gunners or what was the cause of that. Now the shells coming up to clear the high above before they hit anything. So they were easy to dodge. People were out with one of those things came up they could see where it was going see where briscoe and said they could could get out of the way. But it was a mass to survive. Most people did survive the siege of vicksburg, but it was hard, hard times, hard on the confederate soldiers, because there were women and children in those caves and sometimes the shell might land close to the front of the case. And they will retreat us deeply into the cave as they get hoping it would go off before they get into harms way. In a general sense from the civilians in the state have depended on how much military activity there was where they live. Many of them wrote letters and kept diaries complaining not only about unions soldiers, but confederate soldiers taking their food away from them and they have to make do the best they could. In fact it is true when sherman marched the meridian on the way to meridian and on the way back the army back to vicksburg figured they might get something to eat when they got there since the union army controlled vicksburg. They were being wiped out by people on both sides. So they just walked behind the army, white people and black people and followed those people , the Union Soldiers back to vicksburg. So its not an easy life. But especially some of the first action of the workers there. A lot of people completely left everything behind and when they did, you can be served when they got back their homes wouldnt be fair. That occurred across the state. South mississippi wasnt quite as bad because there wasnt as much military action south of vicksburg as of vicksburg for service in in central and northern mississippi. I wanted to add one were to attend was saying about preservation and everything he said is absolutely correct and the need to study the battles and the most mens of applying these lessons, but also i would venture to say the majority of the people in this room had an ancestor in the civil war involved in one way or another and a lot of these battlefields, particularly the ones that have been developed and they are covered up a strip malls and walmart, that they need fair to preserve is far greater today than it is to adding another five acres at gettysburg or somewhere that authorities had targeted. I am working within historic trails commission in tupelo putting up signs for different neck to the geese that occurred there during the battle and its so important because its hollowed ground. People are still buried there. Their grades were covered over with this development and if it was important enough for them to spill their blood and died for that piece of land is certainly import enough for us to preserve it and remember it. We dont have much time left. I want to thank everybody at her one real fast question to justin. Tell us about coonskin. Well, where to begin about him. You are all wondering what did he just asked me why are we talking about this, but it was actually the nickname of a specific Second Lieutenant in the 23rd and being honest had received could in foster because he were coonskin style path for whatever reason. We are not sure where he got it from. Different accounts say different things. But he was the closest thing we get to a modern sniper of vicksburg during the war. During the war, soldiers didnt receive training of marksmanship good theater came to service pack is marksman at the most they would learn a campus they were lucky would be the basic movements to fire at what not based on hearties tacked it or some other equivalent. Foster was one of those who did come to the army and so during the siege early on used to creep in to the spaces of no mans land and make himself a little hide in todays terminology and take rations for a few days and take shots of the defenders. The whole purpose of sniping was once again to provide suppressing fire. The goal is to not people off the ramp paper you can still go forward and protect the workers. What is most famous for his one day and we dont know why, it could than a lack of the best of time can be tedious. He decided to organize a small group from this company and they built a tower, a log cabin style tower in order to assist outlook into vicksburg and fire at confederate and that became known as coonskin tower. It caught a lot of attention by a lot of the soldiers, so much that some try to charge others an admission rate to climb the tower and attracted visitors from all over, one of which was granted himself and one of the stories as they posted a guard because they would climb up it. Duesberg jones case and they wanted something and they wouldnt get shot. The guard had wandered off and they slipped in. If the commanding general. If he wants to climb the tower he can. He gets up to the top and they start cursing at them. Grant just comes down and looks at it and walks away. One of his guys said did you know who that was . That is grand. He runs over and apologizes. He had bigger problems than this one soldier. Its become one of those landmark features of vicksburg. You can see it today obviously. The famous picture, the Historical Society and if youre curious aboard a bus, the tower did survive ossetia and was taken in the aftermath of that is how we know what it looked like visually at least. Once again, i would like to thank everybody on behalf of tim, mike, justin and tom. Thank you for your participation. [applause] what is the worst selfishness mean . It means caring about yourself. It means being concerned with your own bias and your own wellbeing. Now if so, what about all the people who pursue their own wellbeing, pursue their own interests without victimizing others. What about a College Student who diligently spends its time studying rather than parties or an athlete who tirelessly trains in order to become a champion or an inventor who is dedicated to getting rich i devising a better mousetrap or an artist who is devoted to creating a work that fully reflects his own ideals. Now arent these people being selfish . Certainly they are. They are acting to improve their life, pursuing their goals, but they are doing it not at the expense of others. They are creating the values they want. They are not seizing it from others. Why then shouldnt this type of behavior be the proper meaning of selfishness . Why cant we conceive of selfishness as perceiving her and dressed without the demise in others. Why is that part of the essential definition . It doesnt belong there. The political and to lecture leaders said today dont want us to think of selfishness in this way. They want us to think of selfishness as somebody who victimizes other people, it even though there is an obvious distinction between the producer and a predator, between lets say war and asset and ernie made off, between somebody who makes money and somebody who steals that even though the difference is obvious, we are told this distinction must be blurred. We are not to make that distinction. Where to put everything in one fuzzy package deal so just as the predator is committing a moral crime, so argue whenever you act in furtherance of their own selfinterest. This leaves us with a choice of either being a person who sacrifices himself to others by act do not truly sickly or sacrifices others to himself by acting, quote, selfishly. So we have the choice, the full choice of lets say Mother Teresa lived sacrificing himself in service to others for that show who viciously sacrifices others in service to himself. What about the person who does neither . What about the person who pursues his goals and values not at the expense of others. There is no such category the advocates of altar is then tell us. Alvin roth, professor of economics at stanford in the recipient of the 2012 nobel prize in economics looks at how different our kids work. It is next on booktv. [inaudible conversations] [inaudible conversations] hi, everyone. Lets get started. I teach at the Economics Department at hunter. It is my great pleasure to tell you for an evening it would be joined in the conversation. We are at the policy institute. For those of you, Sarah Eleanor roosevelt built this house her son franklin and daughter and bought eleanor. Then the adjacent townhouse has served as all Public PolicyProgram Since 2011. So academic economists, im often confronted with skepticism from outside the profession. In particular the residents of economic. E. When faced with questions of the nature, my instinct is to check my watch and brad, but when that fails i have two favorite examples. [inaudible] both i think beautifully illustrate the value of economic trade. It is useful for telling us what is not achievable. So most individuals have our own rankings over a number of potential policies. How do we abrogate these for society as a whole . In a group that is logically impossible to come up with an aberration that satisfies the minimum requirement from democracy. But all is not lost. True democracy may be impossible but thanks to stable relationships, careers are in breach. Hes done fundamental and exciting work. Typically when we think about markets, we think true crisis which can do a very good job of allocating apples to those consumers who value them the most. But what if an apple has feelings too and could accept or reject humans and what if there were more on the limitations of payments, how then could we set up the market to match assets of individuals in the best possible way. We have built and expanded many such complex matching market and advance to the real world. He is particularly well known for designs of the procedures and medical School Graduates and students to public high schools. Im personally a huge fan. I have wonderful memories of attending his lectures as a graduate student at m. I. T. And its great to have him here to speak about his new book and work. And possibilities on poverty. Its great to have him here. So heres the order of events. We will speak, followed by a conversation to an event Michael Weinstein followed by an audience q a and i will be followed by a book signing and reception and i think that will take place on stage. Thank you. [applause] thank you, karna. Id like to thank such a great audience that comes up for a book on economics. [laughter] you laugh and thats because you know the economics is supposed to be boring. But ive never understood why that should be the case. It always seems to me that economics is like the best kind of gossip, but you open a window on other peoples lies in the decisions there to make and the choices that confront them and that might have confronted you if your chosen a different career or a Different School or made other different choices, and that might also as good gaza does, also might lead you to choices you may still have to make. My book is about market design, which is relatively new subject in economics but its an ancient human activity. Markets are deeply human. When archaeologists find stone tools from the stone age thousands of miles from where they were quarried, it means there were markets in operations for invention of agriculture. So people have been doing markets for a long time. Markets are ancient human artifacts. I often think of markets as being a little bit like languages, which are also deeply human artifacts. But we mostly dont think about languages as artifacts because we dont think we can easily modify them. Im speaking to you in english honorable my book in english but its english as i received a. If i decided assembled by the spelling of some of the odd spelled words in english you would conclude i was illiterate. I dont feel free to modify english and it would be hard to do, words like enough and through, i probably couldnt give it to you cannot spell in a funny way that we all have inherited. But markets are a little different because marcus have her partners, influential groups of users. Markets are more amenable to design, and markets had designs. Markets have rules and the rules by which markets work are their designs. Just like the are lots of different languages, there are lots of different kinds of markets. So what i mostly write about in my book are matching markets, and they are quite a bit different than Commodity Markets which are the kind of markets we often think about. Because when we think about Commodity Markets we are thinking about markets in which prices, money, prices do all the work. The reason prices can do all the work in a welldesigned commodity market is that you dont have to care who youre dealing with, or what you are buying because being a commodity market you know what youre going to get to you are buying a specific thing. When you buy wanted shares of at t on the new york stock exchange, you dont care who youre dealing with. You dont care whether the theye taking good care of those years when they had them. Its an anonymous arms length transaction. The only important thing about it is the price. To chop up in you your stock is changes from moment to moment find the price at which supply equals demand. But matching markets, and there are lots of matching markets, matching markets are markets in which you cant just choose what you want. You also have to be chosen. You cant just choose what you want even if you can afford, you also have to be chosen. Think about College Admissions. I teach at stanford university, and its expensive to go to stanford but stanford doesnt raise the tuition until the supply equals demand, and to justin of who like to enroll in all the classes. The price is stanford charges, lots of people like him to stanford so theres a whole other state of institutions of application and admissions. You cant just choose to go to stanford. You have to be admitted. Stanford cant just choose who will come. They have to compete with harvard and hunter and nyu and all the other wonderful universities. When you get a job you cant just decide to go work at google and show up. You have to be hired. Google cant just choose who will work at google. They have to compete with facebook. These are matching markets that are not anonymous, not arms length. And offer up job, these are personal things and theyre not made for the hallmark of their an offer of a job is made to you, and then it gets turned down you go work somewhere else, the potential employer has to look around and find someone else. These are personal markets that work differently than Commodity Markets. Im going to talk to you a bit today about the design of these markets but before gilligan mentioned that Commodity Markets, the simple ones, they also have to be designed. Lets think about we for a minute. Week. The chicago board of trade makes number two hard red winter wheat as a commodity. When you find by 5000 bushels, you know what you get. Sufficiently, specifically you dont have to care who you buy from. Before they were commodity definitions like that you had to inspect the wheat because every field had some white wheat, some soft wheat, and some hard wheat. Thats part of the market design. You dont have to care who youre dealing with. When i talk about studying markets, im really talking about studying marketplaces. Those are the places where markets happen. If we were studying english, english is too big a subject. If we were studying english we would study books, conversations and tweets and blog posts and television shows. We would still english is used to communicate. When we study markets, we studied marketplaces. Marketplaces are the places where markets happen. They are also the parts of markets that are most amenable to designing rules. There were other things like that products number two hard winter wheat. There some design. But markets run by rules and markets are very today they are almost ubiquitous. We all carry these in our pockets these days, our smartphones. With an iphone you can get ebay and amazon which will sell you lots of stuff. You can get airbnb and uber which will match travelers to hosts or two drivers. You can get to lincoln we can help you find a job. You can get to j. Date to help you find a spouse. [laughter] and these are all matching markets. You cant just choose your spouse big also have to be chosen. There are also markets in which prices may be important for some of these things but they dont determine who gets what. There of institutions that determine who gets the job, who gets the uber car, who gets evened things on ebay. The day started off as an auction site. So what you marketplaces have to do in order to facilitate market . What makes a marketplace successful . First attested make the market safe. It has to attract people to the mark place to come and transact so that when you go to the marquis you can find things what you need or want what you have. Once you get the market to be fixed, you have to deal with congestion. There may be so many transactions there are two evaluate, they are not really there if you cant consider them. Thing about the market like amazon the cells lots and lots of stuff. They have Search Engines to help you search for the otherwise it would be really hard to navigate amazon your but congestion could be a hard topic. Think about airbnb. Airbnb has become a giant decentralized hotel company. That the loss of people into lots of rooms but each of the hosts controls very few rooms. To see why thats a problem, imagine what would happen if you wanted a written Hilton Hotels and called up to see if they had a room you had to ask for it by room number and could only acquire one room at a time. Hello, friday night . Room 527 . Sorry. Its booked on friday night. Call up and said how about room 548 . I could state route 528. That is a little bit of airbnbs problems because each of its hosts offers very few rooms. If you had to call the hilton, nature and ask about it would be hard. But using the market designed to use on the web they can get through a lot of that congestion. When someone inquires about a room, they can take it away. They encourage their hosts to use their smart phones, to use airbnb app so that they dont have to wait until they come home after work to confirm you can have their room. So airbnb is a market that its hard to imagine how it could have worked before smart phones were around, before it was easy to quickly go on to web and on apps. Uber even more so. When you think about technology and making markets ubiquitous, you can see why ebay only needed the internet. Once the internet was invented, ebay was presumed to follow. At uber, yet reserve uber cars on your laptop, it could be a lot like the limousine market. You could always call on the telephone. What makes google work as you can get from the Street Corner while youre standing on the street. So one of the things that we are seeing is that technology is changing the way we deal with these problems of marketplaces, how we kicked over drivers and customers together, dealing with congestion, how to sort through which drivers will take you and which will take which passengers. Safety and reliability, trustworthiness. One thing we worry about, we could worry about if we get in a taxi is maybe a taxi driver will take you off and kidnap you. Taxi drivers worry about that about you, you will kidnap them. Uber is less anonymous that way than taxis, right . When you get into a taxi at the head of the line, near a hotel, the driver doesnt know who you are and you dont know what the driver is and theres no record. If the driver didnt kidnap you, last seen getting into a taxi at the Houghton Hilton hotel room i 27. Uber knows who you are. They know the driver is. If im interested in kidnapping taxi passengers i served would not sign up for uber as a driver because they wouldve exacted when i pick you up and where i was supposed to take you. So theres a level of safety that you will not run off when you get to the destination without paying them. Youve already paid them. The app knows your credit card number to a lot of what markets do is not only to try to make markets, under they have to make markets, india successfully with the congestion that comes with having a thick market, they have to make them safe and simple. One of the attractions of amazon, for example, is that with one credit card which they already know, you can buy from lots of different sellers. There are many sellers on the amazon site. You can buy from them as if you were at the store and buy everything from one vendor. It turns out that lots of actual markets have trouble dealing with these things. As the results are lots of markets when i got a call sometime in 2003 from the director of Strategic Planning for the new York City Department of education, what he was concerned about was the process of getting 85,000, eighth graders in new york. The market was congested. It was congested to the process that they had, they would ask each student to write down a rank order list for the first choice, second choice to third lives. Those lives would be reproduced, sent to the high schools and to constitute your application. High School Principals would know if you want to my high school. And then high schools would make decisions in a decentralized, make your own decisions. They sent them to the department of education. They would compile them and send out letters to you have been accepted to the following schools. If you wanted on a waiting list, choose one of those. That process was too slow to get off 85,000 students in school by the end of august. Now 17,000 students in 20023, about 17,000 cents in new york, got multiple offers. About 30,000 didnt get an offer by the end of august and had to be assigned to a school that they had not express any preference for. One of the ways, it was congested. That was a pure congestion from and also safety problem because if principals know whether you break the first or not and could decide whether not to admit students to rank their first come that meant it wasnt safe to reveal it to school wa whiche first choice is uk buford, georgia, might miss a chance agaitoget your second choice ify wouldnt look at you if you have not ranked them as your first choice. Today theres a computerized process that makes it safe to reveal your preference. Being a computerized makes it faster. Helps with congestion. Whats it mean that it is safe to reveal your preference is . What he needs is your chance of getting a second choice if you dont get your first choice is just the same as if it was your first choice so you dont lose the chance to get your second Choice School because they wont talk to you a you dont list them first. So matchmaking is pretty important. Theres a story that talks about libyas in which the roman matron asks livadias. How long did it take got to grade the universe . He said thats six days and he rested on the seventh. He mentions the source of the citation. She springs the real question. So whats he been doing since then . [laughter] and what he answers, leads and a longer story but he says, hes been making matches and the story goes on. It doesnt seem so hard. Created the universe to be spending his time making matches. You may not think its very hard but it is as hard as dividing the red sea. Smacking is important. One way, i didnt write the book this way but one i write, a publishing a sort of a matching market. The way you sell books, you write a book proposal to revise the proposal and tells you that was a terrible proposal. Why dont you buy the book differently . In my proposal i proposed that the way i would show batch is important have a subtitle, from birth to death along the way. I was going to start off with neonatal heart transplant. When you go for a sonogram is not just yet the first picture for the babys picture book of sometimes when things didnt find it is the baby needs a hard plant because his heart is working properly. But if he does is on bombs and circulatory system. If youre the pediatric cardiologist whose patient is at the facility to heart heart transplant when born, what do you see the because of support for you to do is you used to put the baby on the waiting list for a hard right away. The reason you did was people got priority for being a longtime on the list and you want your patient a priority when he was born. Of course, sometimes babies hearts are very scarce. Sometimes a hard will become available water patient was to be this end of the baby couldnt be, it was too early for a sustained you can do anything but it was late enough they would do a cesarean and then transplant. That meant the baby hard, the scarce baby hearts were going to babies with lower birth rates than otherwise would have. When an adult is on the waiting list, if you god forbid ever need a hard, the longer you on the list the sector you will be. But a baby on moms circulatory system is getting healthier and healthier and probably twofold term allows more of a transplanted to succeed. This is a case for acting in your patients best interest was causing hearts to go to the lower birth rate babies. If id written that book, you know, little mac who survived the transplant, wouldve been sent to kindergarten and high school, college, get a job and maybe go to medical school, did a residency. The book was going to into, full circle, how we allocate deceased donor organs. At the end of his life he might have given an organ if someone had needed want but that is not the book i bring side not to spoil it for you. [laughter] my editor editor looked at it ae said, boring. [laughter] so ive made an effort to write an interesting book about matching and matching markets and all the markets around us, and i find them endlessly fascinating. [applause] [inaudible] it is endlessly fascinating. Not just because im here. I strongly recommend it. Was the best way to engage, and people want to take a risk. When i wrote for jack at the time one of the hardest tasks was to describe to the readers at the time with so many won the nobel prize. Because if you try to translate into it simple english copyright know since of solving scientific problems that always sounded like it had a price for that. Its hard to aggregate preferences, but lets try. You describe in the book what it takes to make these matching markets work. You have a clearinghouse. You have preferences and in their massage by the computer vendors to sides of the market, et cetera, et cetera. You describe something called deferred acceptance algorithm, which is another problem. What you did you . What was the contribution of . Youve translated that concept into something that actually works so that students can be assigned high schools, so the kidneys can be decided to restrict what did you do . Well, i did a couple of things. One of them is i discovered before they proposed itd been discovered in matching markets to a particular medical match, the residency match preceded them by more than a decade, and used a much more difficult described algorithm that i was able to show was [inaudible] and knowing that allowed me to understand what function to clearinghouse that was proposed in the 1950s for new doctors for the first employment, what function serve in the market, how we fixed market failures that preceded the invention. So in the 1900, early 1900s if you were a doctor graduated from medical school you went and looked for a job when you graduated. But hospitals start to compete with each other for residents, interns. By around 1930 students were getting their first jobs around christmas time for the last year in medical school, and there was effort to make sure it didnt go any earlier but its hard to make sure things to go early when its in the interest of employers to compete. In the 1940s medical students were being hired two full years before graduation. Its hard to tell who will be a good doctor. You couldve gotten an a. In an agony and did a great job of two years in the future as a surgeon and then discover that you faint at the sight of blood. So lots of markets have failed in that way, and eventually the medical school intervened and controlled the timing but they were exploding offers. And eventually they hit on centralized clearinghouse saying things worked swimmingly for many years until couples started be part of the medical labor force. What i found early on was that the clearinghouse had stalled the problems for the or the place and thats what led to this discussion of thickness and congestion because there had been failures related to the market to when you are getting hired two years in advance, some people were hired at the beginning of the summer after second year. Some people were hiring at the end of the summer. You didnt get to compare a lot of jobs. The market wasnt there. Another thing i did when it came time to redefine the match, in 1950 when the first formulation by trial and error by the medical community, medical students in the United States were all men. By 1970 there were about 10 women. Today they are at 50 . One of the things about being in medical school is you are very busy. But you apparently have time to marry her classmates. So there are a lot of medical students who are married to each other and, therefore, need to jobs and one of the things we now figured out is help them find to jobs together. Can you share with us how that works, with a key insight was in solving a problem . Well, thats a little tricky so let me tell you about that. What david and loyal to lloyd did in 1962, they wrote a wonderful paper called College Admissions and the stability of marriage. The question was what was that paper about. It was about a simple but a twosided matching which basically talked about as marriage in College Admissions defensive work to think about. What they said is how do you match me and women and what would be supposed to try to match them, what requirements with a match have to ask whats with the dig out was if you suggest a match you want people to follow through with, marry who you told them to, it better be stable and following since the toshiba two people not married to each other would both prefer to be married to each other and who you told them to. If that was the case they could just marry each other. It turns out thats an important property for many matching markets. The medical administrators, medical command found a way to do that in 1950. Then couples started there in the market and one more thing about the medical clintonesque of its it was a successful. What i mean by successful . It was a voluntary process. When you look at an action appears almost all doctors were going through it and they were being employed at the hospitals that was adjusted for them. That match is producing a suggestion. You have been matched to the following hospital. The hospital has been match with the following students. Please exchange signed contracts and go ahead. 95 of jobs were being built. The students were where theyre supposed to be in july. And couples started to appear they were not there in july. They were somewhere else. The medical match try to accommodate interface didnt ever couples who needed to jobs. The 1970s are culturally a very long time ago, and the way the medical Community Try to facilitate couples to up the match each other its first the couple had to be certified as a legitimate couple. Then the couple had to decide if one of the members was a leading member. Then each of the members of the couple submitted a rate order as if they were single. This is my first choice, second choice, third choice. Been a leading member went to the match first. Got a job somewhere and then the other member had his or her list edited to take all the jobs that were not in a city that the leading member had been matched to and then they would hopefully find a job in the same city with the other member. That was often successful. They often than the two jobs but what they found was when you hope to see there in those jobs in july, they were not there. Whats going on is the iron law of marriage, which says that you cant be happier than your spouse. So suppose my wife and i are looking for two jobs. We have as our first choice to create jobs in new york and we have as our second choice to great jobs in san francisco. To great jobs in boston. When you use this 1970s algorithm, what do we get . We get one great job in boston and one not so great job in