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Mechanism design

Mechanism design is a sub-field of game theory. It is the art of designing rules of a game to achieve a specific outcome. This is done by setting up a structure in which each player has an incentive to behave as the designer intends.

One branch of mechanism design is the creation of markets such as auctions. Another is the design of matching algorithms such as the one used to pair medical school graduates with internships.

01-04-2007 01:18:14
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