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:
“The law isn’t justice. It’s a very imperfect mechanism. If you press exactly the right buttons and are also lucky, justice may show up in the answer. A mechanism is all the law was ever intended to be.”
—Raymond Chandler (1888–1959)
“If I commit suicide, it will not be to destroy myself but to put myself back together again. Suicide will be for me only one means of violently reconquering myself, of brutally invading my being, of anticipating the unpredictable approaches of God. By suicide, I reintroduce my design in nature, I shall for the first time give things the shape of my will.”
—Antonin Artaud (1896–1948)