Blog
Oxbridge Economics: How geometry came to the rescue during the banking crisis
Geoff Riley
16th July 2013
The design or architecture of auctions can have a huge bearing on their final outcomes be it the auctioning off of 4G spectrum licences or the need for an efficient system for when the Bank of England is lending to commercial banks. This super short video from the Guardian reflects on the work of Paul Klemperer from Oxford University. The specific example covered in the video is the "product mix auction" - a system devised for when the Bank of England uses auctions to determine how to inject liquidity into the banking system.
Further reading:
Hammering LIBOR (The Economist)
The Devil is in the Detail (Tim Harford)
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.