Two Americans win Nobel Peace Prize for a priceless supply and demand formula

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Two Americans win the Nobel economics Prize for economics, this Monday, for their work on match-making.
Professors Lloyd Shapley and Alvin E. Roth discovered a way to match men and women, doctors and hospitals, as well as students and schools. Shapley created formulas to maximize supply and demand where money is not involved while Roth contributed to applying real life issues to the mathematical equations, The Washington Post reported.
Shapley, of UCLA, first began working on his match-making theory in the 1960's when he and the late David Gale looked at how to match 10 women and 10 men in stable marriages, according to The Star Tribune. To ensure stability, both partners had to feel they got the most attractive possible match.
Though this theory was never tested with real couples, Roth used this same theory years later to enhance the National Resident Matching Program, pairing hospitals and doctors as well as making sure no student is forced to go to a school they did not want to in the New York Public School District, The Star Tribune reported.
According to The Washington Post, The field of matching deals with issues of life and death as well. Research is currently underway that will help match those in need of a kidney transplant to donors.
"I look around the world, and I see all kinds of interesting, important problems we ought to solve with the tools we have," Roth told Forbes Magazine in 2010.

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This page contains a single entry by bellx481 published on October 15, 2012 6:48 PM.

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