Ali Hortacsu

Hortaçsu developed novel analytical and statistical methods to measure and improve the efficiency of market mechanisms. The microeconometric approach to market design that he has developed uses detailed, individual level data on market participants to infer the economic preferences/motives rationalizing observed behavior, and bases the retrospective and/or prospective evaluation of a market mechanism on the welfare metrics implied by market participants' preferences. This approach avoids the utilization of ad hoc performance measures to guide the design of complex market institutions, and centers policy/design discussions around clearly specified and empirically quantified economic welfare criteria.