MECHANISM DESIGN

A branch of microeconomics which examines how businesses and institutions can attain desirable economic or social outcomes, given the limitations of people’s self-interest and partial data.

People may not be motivated to provide accurate information if they act on their own self-interest. It gets private information and incentives into an account in order to refine economists' comprehension of market mechanisms and exhibits how the right incentives can prompt individuals to reveal their information and generate optimum income.