On Informationally Decentralized Systems.¶
Hurwicz, L. (1972). On Informationally Decentralized Systems. Decision and Organization: A Volume in Honor of Jacob Marschak.
Cited by¶
2 citations across 2 artifacts.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Incentive Compatibility
- names the design property that (1) a mechanism, rule, contract, or institution is incentive-compatible when (2) each participant, acting to maximize their own private payoff, (3) finds that their best response is also the action the designer wanted them to take — most importantly, truthfully revealing their private information or choosing the socially desired behavior — so that (4) no costly monitoring, enforcement, or exhortation is required beyond the mechanism's native structure.
This sourceIntroduced the term incentive compatibility and formalized the strategic-information-transmission problem under decentralization.
- names the design property that (1) a mechanism, rule, contract, or institution is incentive-compatible when (2) each participant, acting to maximize their own private payoff, (3) finds that their best response is also the action the designer wanted them to take — most importantly, truthfully revealing their private information or choosing the socially desired behavior — so that (4) no costly monitoring, enforcement, or exhortation is required beyond the mechanism's native structure.
- Mechanism Design
- The foundational formal instance is Leonid Hurwicz's 1960 paper Optimality and Informational Efficiency in Resource Allocation Processes and his 1972 On Informationally Decentralized Systems,
This sourceIntroduced the term incentive compatibility and formalized the strategic-information-transmission problem under decentralization.
- The foundational formal instance is Leonid Hurwicz's 1960 paper Optimality and Informational Efficiency in Resource Allocation Processes and his 1972 On Informationally Decentralized Systems,
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