''Designing Economic Mechanisms'' is a 2006 book by economists

Leonid Hurwicz Leonid Hurwicz (; August 21, 1917 – June 24, 2008) was a Polish-American economist and mathematician, known for his work in game theory and mechanism design. He originated the concept of incentive compatibility, and showed how desired outcome ...

and

Stanley Reiter Stanley Reiter (April 26, 1925 – August 9, 2014) was an American author, economist, and Emeritus Professor at Northwestern University. Reiter was a leading pioneer in the field of mechanism design. In 2006, he and the 2007 Nobel prize-winning ...

. Hurwicz received the 2007

Nobel Memorial Prize in Economic Sciences The Nobel Memorial Prize in Economic Sciences, officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel ( sv, Sveriges riksbanks pris i ekonomisk vetenskap till Alfred Nobels minne), is an economics award administered ...

with

Eric Maskin Eric Stark Maskin (born December 12, 1950) is an American economist and mathematician. He was jointly awarded the 2007 Nobel Memorial Prize in Economic Sciences with Leonid Hurwicz and Roger Myerson "for having laid the foundations of mechanism ...

and

Roger Myerson Roger Bruce Myerson (born March 29, 1951) is an American economist and professor at the University of Chicago. He holds the title of the David L. Pearson Distinguished Service Professor of Global Conflict Studies at The Pearson Institute for the ...

for their work on

mechanism design Mechanism design is a field in economics and game theory that takes an objectives-first approach to designing economic mechanisms or incentives, toward desired objectives, in strategic settings, where players act rationally. Because it starts a ...

. In this book, Hurwicz and Reiter presented systematic methods for designing decentralized economic mechanisms whose performance attains specified goals.

Summary

The authors of this book, Leonid Hurwicz and Stanley Reiter, helped found the field of

. This book provides a guide for those who would design mechanisms. A decentralized mechanism is a mathematical structure that models institutions for guiding and coordinating economic activity. Such institutions are usually created by administrators, lawmakers, and officers of private companies to achieve their desired goals. Their purpose is to achieve their desired goal in a way that economizes on the resources needed to operate the institutions, and that provides incentives that induce the required behaviors. In this book, systematic procedures for designing mechanisms that achieve specified performance goals, and economize on the resources required to operate the mechanism, i.e., informationally efficient mechanisms, are presented. Most of the book deals with the systematic design procedures which are algorithms for designing informationally efficient mechanisms. In the book, informationally efficient dominant strategy implementation is also studied.

Bibliography

References

* {{Improve categories, date=August 2021 2006 non-fiction books Economics books Mechanism design Cambridge University Press books