Specifically, in the software industry, progress is highly sequential: progress is typically made through a large number of small steps, each building on the previous ones.

Eric Maskin

Categorized in : Small Through Building Progress

Many markets work best with little or no outside interference. But others - especially those subject to big 'externalities' - need a helping hand.

helping-hand need best work

There is universal consensus among experts that the earth's atmosphere is heating up - and that we are responsible for it by putting carbon dioxide in the atmosphere. We also know that the consequences of global warming are catastrophic. But how do we make sure that all countries reduce greenhouse gases?

how know global-warming earth

There are some things that we value as a public good that the markets can't deliver, like clean air.

value things good like

Of course, MIT was notable not just for its faculty but also for its students. And, facing such extremely bright kids as a rookie teacher was something like being thrown to the wolves.

wolves something students teacher

I like to work on a number of things simultaneously. If you're working on a variety of projects and if you get stuck on one of them, you can move to another without grinding your gears indefinitely.

your things you work

I'm not a housing market expert, and I don't want to pretend to be one.

market pretend housing want

Devising a mechanism is a lot like solving a puzzle - and gives you the same kind of kick.

puzzle kick like you

I was born in New York City but grew up across the Hudson River in Alpine, New Jersey.

river city new born

At Tenafly High, I was lucky to have some dedicated teachers; I'm especially indebted to my calculus instructor, Francis Piersa, who opened my eyes to the striking beauty of mathematics.

teachers eyes mathematics beauty

I probably learned most at MIT by teaching and working with Peter Diamond, who acted like a big brother to me during my time in the department.

big-brother me brother time

Much theoretical work, of course, focuses on existing economic institutions. The theorist wants to explain or forecast the economic or social outcomes that these institutions generate.

explain economic social work

The theory of mechanism design can be thought of as the 'engineering' side of economic theory.

side thought engineering design

What we mean by an outcome will naturally depend on the context. Thus, for a government charged with delivering public goods, an outcome will consist of the quantities provided of such goods as intercity highways, national defense and security, environmental protection, and public education together with the arrangements by which they are financed.

will environmental together education

Because mechanism designers do not generally know which outcomes are optimal in advance, they have to proceed more indirectly than simply prescribing outcomes by fiat; in particular, the mechanisms designed must generate the information needed as they are executed.

more because know information

Economic forecasting has actually got pretty good over the years, though admittedly, we don't always get it right.

pretty good always economic

If budget planning requires gathering information from people who may not always have the incentive to disclose that information, then the principles of mechanism design can definitely be of use in such planning.

planning information design people

I entered economics because of a course I took on 'information economics,' which I found fascinating.

because economics information found

I think I have met nearly all the Laureates in Economics. Among the few I haven't met, I suppose I'd most like to meet Ronald Coase because of his legendary power to persuade his colleagues of the validity of the Coase Theorem.

think colleagues economics power

I choose questions to work on according to how much they excite me.

choose questions me work

In various countries around the world, assets that had previously been in the hands of governments were sold off to the private sector in the hope that this would lead to a more efficient allocation, that these assets would be put to better use.

better hope hands world