Can we manage with(out) markets?
...Q: So you have to manage the market.
Yes. You have to manage the design of the market. One of the things that
a good business school should be doing is producing market designers. As
a matter of fact, the design of markets is frequently a way for individuals to
become obscenely rich. The first person to design a market, if he can commercialize it, will make an enormous gain.
Q: That's a good incentive.
It's an extremely good incentive.....
-Interview with Martin S. Shubik
Seymour H. Knox Professor Emeritus of Mathematical Institutional Economics,
Yale School of Management
HT: vbounded
see his link for "Derivative Markets for Home Prices
The greatest example has to be Leo Melamed and the creation of financial futures at the Chicago Merc. which Nobel Laureate in Economics, Merton Miller, called "the most significant innovation of the past two decades."
Another one we followed virtually alpha-omega was the CCX:
The Chicago Climate Exchange has Died, Richard Sandor Pockets $98 Million and the Intercontinental Exchange Gets Bagged Big Time (ICE; GS)
CARBON KING: Economist Strikes Gold In Climate-Change Fight
Richard Sandor, Barack Obama and the Founding of the Chicago Climate Exchange (CLE.L)