Eric Budish
Paul G. McDermott Professor of Economics and Entrepreneurship and Centel Foundation/Robert P. Reuss Faculty Scholar
A Market without HFT?
How choices in market design affect the fortunes of various types of investors.
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Biography
Eric Budish is the Paul G. McDermott Professor of Economics and Entrepreneurship at the University of Chicago, Booth School of Business. He is also a Research Associate at the National Bureau of Economic Research, Co-Director of The Kent A. Clark Center for Global Markets at Chicago Booth, and the Krane Distinguished Visiting Professor at the University of Chicago Law School.
Budish’s main area of research is market design, with specific topics studied including financial markets, matching markets, ticket markets, blockchains and cryptocurrencies, and incentives for innovation. His most recent research has concerned various aspects of the Covid-19 crisis, especially on how to use market design to accelerate global vaccination.
Budish’s work proposing frequent batch auctions as an alternative to continuous trading on financial exchanges, to address the negative aspects of high-frequency trading, received the AQR Insight Award and the Leo Melamed Award; has been discussed in major policy addresses by the NY Attorney General and the SEC Chair; and has influenced exchange design proposals in both stock markets and futures markets. His research on patent design and cancer R&D, which shows how flawed innovation incentives led to underinvestment in long-term research for cancer prevention, received the Kauffman/iHEA Award for Health Care Entrepreneurship and Innovation Research, and the Arrow Award for the best paper in Health Economics. His research on matching theory developed a new market design, which applies price-theoretic competitive equilibrium ideas to a non-money matching market, that is now in use at many universities for matching students to schedules of courses.
Budish received his PhD in Business Economics from Harvard University, his MPhil in Economics from Oxford (Nuffield College), and his BA in Economics and Philosophy from Amherst College. Prior to graduate school, Budish was an analyst at Goldman Sachs. Budish’s honors include giving the 2017 AEA-AFA joint luncheon address, the Sloan Research Fellowship, and the Marshall Scholarship.
Selected Publications
“An Economic Framework for Vaccine Prioritization,” (with Mohammad Akbarpour, Piotr Dworczak, and Scott Duke Kominers), Quarterly Journal of Economics, forthcoming
“Primary-Market Auctions for Event Tickets: Eliminating the Rents of ‘Bob the Broker’?” (with Aditya Bhave), American Economic Journal: Microeconomics 15(1): 142-170, 2023.
“Quantifying the High-Frequency Trading ‘Arms Race’: A Simple New Methodology and Estimates,” (with Matteo Aquilina and Peter O’Neill), Quarterly Journal of Economics 137(1): 493-564, 2022. (Winner of the WFA 2020 Two Sigma Best Paper Award for Investment Management.)
“Market Design to Accelerate COVID-19 Vaccination,” (with Amrita Ahuja, Susan Athey, Arthur Baker, Juan Camilo Castillo, Rachel Glennerster, Scott Duke Kominers, Michael Kremer, Jean Lee, Canice Prendergast, Christopher M. Snyder, Alex Tabarrok, Brandon Joel Tan, and Witold Wiecek), Science 371(6534): 1107-1109, 2021.
With Peter Cramton and John Shim, "The High-Frequency Trading Arms Race: Frequent Batch Auctions as a Market Design Response," Quarterly Journal of Economics Vol. 130(4), Nov 2015, pp 1547-1621.
With Benjamin Roin and Heidi Williams, "Do Firms Underinvest in Long-Term Research? Evidence from Cancer Clinical Trials," American Economic Review Vol. 105(7), July 2015, pp 2044-2085.
"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.
2023 - 2024 Course Schedule
Get Insights from Eric Budish in Chicago Booth Review
A Blueprint for a Better Stock Exchange
With the transformation of asset markets over the past two decades, ‘flow trading’ could offer a more flexible and fairer way to trade.
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How to Vaccinate the World (Next Time)
Four lessons in supply and demand to help combat global pandemics
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