Why study economics? Economics and computer science edition... ~ CookingFood.Org

MIT is offering a new degree in economics and computer science, which again illustrates that there are lots of jobs available for economics graduates in the tech sector:

The new major aims to prepare students to think at the nexus of economics and computer science, so they can understand and design the kinds of systems that are coming to define modern life. Think Amazon, Uber, eBay, etc.

“This area is super-hot commercially,” says David Autor, the Ford Professor of Economics and associate head of the Department of Economics. “Hiring economists has become really prominent at tech companies because they’re filling market-design positions.”

Because these companies need analysts who can decide which objectives to maximize, what information and choices to offer, what rules to set, and so on, “companies are really looking for this skill set,” he says...

Asu Ozdaglar, the Joseph F. and Nancy P. Keithley Professor of Electrical Engineering and acting head of the Department of Electrical Engineering and Computer Science (EECS), says...

“If you’re thinking about humans making decisions in large-scale systems, you have to think about incentives,” she says. “How, for example, do you design rewards and costs so that people behave the way you desire?”

These issues will be familiar to any Uber user caught in a downpour. Suddenly, the cost of getting anywhere increases dramatically, which is also an incentive for Uber drivers to move toward the storm of demand. Surge pricing may be a scourge to customers, but it's also a way to match supply with demand — in this case, cars with riders.

Read more about the new degree at the link above. Fortunately, you don't need to go all the way to MIT to study economics and computer science. The University of Waikato has one of the top two economics departments in New Zealand, as well as a highly regarded computer science department.

[HT: Marginal Revolution]

Read more: