Abstract: Alvin E. Roth and Lloyd Shapley have been awarded the 2012 Nobel Prize in economics for their theoretical research and practical work in Cooperative Game, Market Design and Matching Theory. Cooperative Game is a game where groups of players (“coalitions”) may enforce cooperative behavior to maximize their own interests. Matching Theory and Market Design focus on exploring how matching procedures can be improved to produce better results for all participants concerned. These research results provide valuable implications and reference for solving the problems in Chinas economic research and in Chinas current development. For example, the management should pay attention to the establishment of a wide range of fair and reasonable mechanisms for allocation and improve market efficiency through the market mechanism design.

Key words: cooperative game, Shapley value, stable matching, market design, the Nobel Prize in economics