Theory of mechanism design (2007 nobel prize in economics)

S. Izmalkov, K. Sonin, M. Yudkevich

Research output: Contribution to journalArticlepeer-review


The paper outlines the basics of the mechanism design theory and describes the defining contribution of Leo Hurwiсz, Eric Maskin, and Roger Myerson, the Nobel prize winners in economics in 2007. It starts by introducing the concepts of economic mechanism, incentive compatibility, and implementation, and provides a non-technical description of main results. Then it explains the relationship between theoretical foundations and real-world market mechanisms such as auctions. Finally, recent applications of the mechanism design theory to institutional analysis are discussed.

Original languageEnglish
Pages (from-to)4-26
Number of pages23
JournalVoprosy Ekonomiki
Issue number1
StatePublished - 2008
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2008, Russian Presidental Academy of National Economy and Public Administration. All Rights Reserved.


  • Auctions
  • Economic institutions
  • Incentives
  • Mechanism design
  • Nobel Prize in economics

ASJC Scopus subject areas

  • Business and International Management
  • History
  • Economics and Econometrics
  • General Economics, Econometrics and Finance


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