Strategy in the Real World · Designing games
Mechanism Design
Reverse game theory: start with the outcome you want and design the rules so self-interested players produce it. Incentive compatibility, the revelation principle, VCG, matching markets and deferred acceptance, with real systems from medical residencies to kidney exchange.
Step 1 of 5 · Overview35 min read ·
Key idea
Prereqs: Auctions; Bayesian games. Next: Coordination & focal points. Sources: Hurwicz, Maskin & Myerson (Nobel 2007); Roth & Shapley (Nobel 2012); Alvin Roth's *Who Gets What — and Why* (2015); Maskin's Serious Science interview.Next: 1. The design problem