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RAKESH VOHRA KELLOGG SCHOOL OF MANAGEMENT NORTHWESTERN UNIVERSITY CS and ECON.

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Presentation on theme: "RAKESH VOHRA KELLOGG SCHOOL OF MANAGEMENT NORTHWESTERN UNIVERSITY CS and ECON."— Presentation transcript:

1 RAKESH VOHRA KELLOGG SCHOOL OF MANAGEMENT NORTHWESTERN UNIVERSITY CS and ECON

2 Brief History of Interactions

3 So, 5 minutes?

4 What is CS?

5 Conception has changed over time Subjects once central have moved to the periphery, e.g., Numerical Analysis Subjects once on the periphery are closer to the center, e.g., statistics (data mining, clustering, classification, inference) Border is porus; Combinatorial Optimization, Graph Theory, Combinatorics, Logic Even with subfields there is enormous variance, e.g., AI.

6 What is ECON?

7 Debate about it's definition, scope and label since inception. Whatley: Catallactics (Science of Exchange) Robbins : `is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.'

8 Obvious Similarities Vintage (Victorian) Employment of Mathematics (discrete vs. continuous) Imperial: each holds a perspective that is believed to have universal application

9 John von Neuman Game Theory Duality theorem of linear programming. Cellular automata. Merge Sort algorithm (according to Knuth) Pseudorandom numbers

10 Gaspard de Prony (1755-1839) Charged to produce log and trig tables to between 14 and 29 decimal places. Inspired by Adam Smith's analysis of division of labor

11 Gaspard de Prony (1755-1839) `I conceived all of a sudden the idea of applying the same method to the immense work with which I had been burdened, and to manufacture logarithms as one would manufacture pins'.

12 de Prony’s Machine Hierarchy of 3 levels Top: Adrien Legendre and Lazare Carnot: decided on the formulas to be used in the calculations.

13 de Prony’s Machine Middle: Given the mathematical formulas to be used, organized the computations and compiled the results ready for printing. Bottom: 60-80 unemployed hairdressers who performed the actual computations that required only addition and subtraction.

14 Babbage On the Economy of Machinery and Manufactures (1835) Introduces notion of economies scale. Division of labor impacts not just output, but wages.

15 Babbage “The present volume may be considered as one of the consequences that have resulted from the Calculating-Engine, the construction of which I have been so long superintending.”

16 Algorithms

17 Algorithms in Economics Procedure, Process, Protocol, Tatonnement and Mechanism Proposal algorithm Top Trading Cycle Algorithm

18 Algorithms in Economics Ascending Auctions Fictitious Play Backward Induction Rationalizability

19 Algorithm as Existence Proof Stable Matching and House Allocation Rationalizability of Preferences

20 Algorithm as Mechanism Auctions Preference Aggregation - Consensus methods

21 Algorithm as Model/Dynamic Hannan Theorem/Experts Theorem Approachability Reinforcement learning Search Models in Matching Markets Replicator Dynamics

22 Complexity

23 Complexity: Bounded Rationality Herbert Simon Bounded Depth Automata Incomplete Contracts Imitability Organizational Design (Babbage and de Prony!)

24 Complexity: Communication Organizational Design Size of Message Spaces

25 Complexity: Computation Hardness of Computing Equilibrium Hardness of Manipulation (voting, forecasting) MDP's Groebner basis

26 Complexity: Description Kolmogorov-Entropy Strategies in Repeated Games

27 Complexity: Learning VC dimension Vapnik-Chervonenkis

28 Mediation, Trust & Privacy Reputation/Repetition Implementation without a mediator Multiparty computation Preference revelation Indirect vs. Direct mechanisms

29 Epistemology Role of Knowledge in Games e-mail game, general's dilemma TARK

30 Social Networks Formation Information Transmission Distribution of wealth, income


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