I don't fully agree with his characterization of the policy response. (And from another context, there's a new working paper by Jonas Hjort et al. which provides a hopeful picture on this question: they show officials in Brazil were more likely to adopt a policy after being informed of research.)
But I got reminded of Rivan's question again when today I stumble upon this interview of Shengwu Li in Logic Magazine. Excerpts:
Li: So in 1961 Vickrey writes a paper where he proposes a new kind of auction that combines the benefits of both formats. … Here’s how it works: everybody bids, the highest bidder wins, and then the winner pays the second-highest bid. Thus the second-price auction was born.
Logic: What happens to Vickrey’s idea?
Li: Mostly it gets ignored. No real auctioneers adopt this way of selling things. Then, about a half-century later, in the early 2000s, Google picks it up and dusts it off as they’re figuring out how to sell ads.Half a century! Now that's a really long time for research adoption.
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[1] --not his exact words but it was along this line. This phrasing is lifted shamelessly from an old J-PAL tagline.
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