mechanism design
/ˈmekənɪzəm dɪˌzaɪn/
creating rules to achieve desired outcomes given strategic behavior
mechanism design in a sentence
“Auction design is an application of mechanism design.”
Origin of mechanism design
From mechanism (Greek mekhane device) + design
Related Words
incentive compatibility
a system where honest behavior is in each participant's interest
social dilemma
a situation where individual rationality leads to collective irrationality
tragedy of the commons
depletion of shared resources due to individual self-interest
free rider problem
the tendency to benefit from collective goods without contributing
coordination problem
difficulty in aligning actions when mutual benefit requires agreement
public good
a good that is non-excludable and non-rivalrous