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:
“A mechanism of some kind stands between us and almost every act of our lives.”
—Sarah Patton Boyle, U.S. civil rights activist and author. The Desegregated Heart, part 3, ch. 2 (1962)
“If I knew for a certainty that a man was coming to my house with the conscious design of doing me good, I should run for my life ... for fear that I should get some of his good done to me,—some of its virus mingled with my blood.”
—Henry David Thoreau (1817–1862)