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Leonid Hurwicz, Eric S. Maskin and Roger B. Myerson: Mechanism Design Theory

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Abstract

Scientific Background, The Nobel Prize in Economic Sciences 2007. Economic transactions take place in markets, within firms and under a host of other institutional arrangements. Some markets are free of government intervention while others are regulated. Within firms, some transactions are guided by market prices, some are negotiated, and yet others are dictated by management. Mechanism design theory provides a coherent framework for analyzing this great variety of institutions, or "allocation mechanisms", with a focus on the problems associated with incentives and private information.

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  • Committee, Nobel Prize, 2007. "Leonid Hurwicz, Eric S. Maskin and Roger B. Myerson: Mechanism Design Theory," Nobel Prize in Economics documents 2007-2, Nobel Prize Committee.
    • Handle: RePEc:ris:nobelp:2007_002
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    File URL: http://www.nobelprize.org/nobel_prizes/economics/laureates/2007/advanced-economicsciences2007.pdf
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    References listed on IDEAS

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    Cited by:

    1. Hoppe, Eva I. & Schmitz, Patrick W., 2015. "Do sellers offer menus of contracts to separate buyer types? An experimental test of adverse selection theory," Games and Economic Behavior, Elsevier, vol. 89(C), pages 17-33.

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    More about this item

    Keywords

    Mechanism Design; Asymmetric Information;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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