mechanism design

Show Summary Details

Quick Reference

The construction of a game of strategic interaction that achieves a specific outcome. Mechanism design chooses the structure of a game so that the players of the game find it in their best interest to behave as the designer of the game intends. When this is achieved the game is described as implementing the desired outcome. For example, the Clarke–Groves mechanism succeeds in getting individuals to reveal their true valuations of a public good, and therefore allows efficient provision of the public good.

Subjects: Economics.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.