Game Theory Questions
The concept of mechanism design in game theory refers to the process of designing rules or mechanisms that incentivize rational individuals to behave in a desired way, even when they have conflicting interests. It involves designing mechanisms such as auctions, voting systems, or contracts that encourage participants to reveal their true preferences or information, leading to efficient outcomes. Mechanism design aims to achieve desirable social or economic outcomes by aligning individual incentives with the overall objectives of the system.