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雷达卡
Theory of Mechanism Design –
“engineering” part of economic theory
• much of economic theory devoted to:
– understanding existing economic institutions
– explaining/predicting outcomes that institutions generate
– positive, predictive
• mechanism design – reverses the direction
– begins by identifying desired outcomes (goals)
– asks whether institutions (mechanisms) could be designed to achieve
goals
– if so, what forms would institutions take?
– normative, prescriptive
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