Mechanism design (sometimes called reverse game theory) is a field in game theory studying solution concepts for a class of private information games. The distinguishing features of these games are:
- that a game "designer" chooses the game structure rather than inheriting one
- that the designer is interested in the game's outcome
Such a game is called a "game of mechanism design" and is usually solved by motivating agents to disclose their private information. The 2007 Nobel Memorial Prize in Economic Sciences was awarded to Leonid Hurwicz, Eric Maskin, and Roger Myerson "for having laid the foundations of mechanism design theory".
Read more about Mechanism Design: Intuition
Famous quotes containing the words mechanism and/or design:
“I’ve never known a Philadelphian who wasn’t a downright “character;” possibly a defense mechanism resulting from the dullness of their native habitat.”
—Anita Loos (1888–1981)
“Delay always breeds danger; and to protract a great design is often to ruin it.”
—Miguel De Cervantes (1547–1616)