Faculty & Research

Eric Budish

Associate Professor of Economics and Neubauer Family Faculty Fellow

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5807 South Woodlawn Avenue
Chicago, IL 60637

Eric Budish is Associate Professor of Economics at the University of Chicago, Booth School of Business. Budish is an applied micro-economist and game theorist who researches market design: designing the “rules of the game” in a market so that self-interested behavior by market participants leads to economically attractive outcomes. Budish writes “I am motivated by the idea that my work can improve the efficacy of real-world market institutions.”

Budish’s most recent research concerns the design of financial exchanges. Budish and his collaborators argue that the exchange design that is currently predominant around the world, the continuous limit order book, is flawed, because it induces a socially wasteful and liquidity reducing arms race among high-frequency trading firms. As an alternative, Budish suggests that financial exchanges instead use frequent batch auctions: uniform-price double auctions conducted at frequent but discrete time intervals, such as every 1 second or 100 milliseconds. This research has been presented at numerous academic seminars and conferences as well as to major exchanges, high-frequency trading firms, investors, and regulators. It received the 2014 AQR Insight Award. Budish’s dissertation research concerned the matching problem of assigning students to schedules of courses, or workers to schedules of shifts. Budish’s proposed design, which applies price-theoretic competitive equilibrium ideas to a matching market, was recently adopted for use in practice by the Wharton School for MBA course allocation. Other past and ongoing research projects relate to patent design and R&D incentives, internet auctions, school choice procedures, and the market for event tickets. Budish’s research on patent design, together with a health economist and patent scholar, shows that the patent system inadvertently under-incentivizes long horizon R&D for cancer drugs, and won the 2013 Kauffman/iHEA Award for Health Care Entrepreneurship and Innovation Research.

Budish received his PhD in Business Economics from Harvard University before joining Chicago Booth in 2009. He received a BA in Economics and Philosophy from Amherst College and an M.Phil. in Economics from Oxford (Nuffield College), where he was a Marshall Scholar. Prior to graduate school, Budish worked at Goldman Sachs as an analyst in the mergers and acquisitions group.


2014 - 2015 Course Schedule

Number Name Quarter
35601 Applied Theory Workshop 2014 (Fall)
42001 Competitive Strategy 2015 (Winter)

Other Interests

Technology, politics, music, travel, outdoors


Research Activities

Market design, microeconomic theory, industrial organization, finance

With Peter Cramton and John Shim, “The High-Frequency Trading Arms Race: Frequent Batch Auctions as a Market Design Response,” (working paper).

With Benjamin Roin and Heidi Williams, “Do Fixed Patent Terms Distort Innovation? Evidence from Cancer Clinical Trials,” (working paper).

“The Combinatorial Assignment Problem: Approximate Competitive Equilibrium from Equal Incomes,” Journal of Political Economy Vol. 119(6), pp 1061-1103 (Dec 2011).

With Estelle Cantillon, “The Multi-Unit Assignment Problem: Theory and Evidence from Course Allocation at Harvard,” American Economic Review, Vol. 102(5), Aug 2012, pp. 2237-71.

With Yeon-Koo Che, Fuhito Kojima, and Paul Milgrom, “Designing Random Allocation Mechanisms: Theory and Applications" American Economic Review, Vol. 103(2), April 2013, pp 585-623.