Alvin Roth of Harvard won the 2012 Nobel Prize in Economics for designing systems that allocate resources in innovative ways. For example, he designed a system that matches donated kidneys to recipients waiting for such donations. This system takes into account the needs of each perspective recipient, their blood type, and the urgency of their case. (Source: Washington Post, October 16, 2012) Based on the news clip above, the allocation of resources is made using

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Alvin Roth designed a system that matches donated kidneys to recipients based on their personal characteristics, such as blood type and the urgency of their case. Therefore, the allocation of resources is made using personal characteristics, not market price, auction, or lottery.

Alvin Roth of Harvard Won the 2012 Nobel Prize in Economics