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Mechanism Design & Market Design
Textbooks
- Börgers, T. — An Introduction to the Theory of Mechanism Design (2015). Clear graduate-level textbook on mechanism design theory.
- Roth, A. E. — Who Gets What — and Why (2015). Accessible introduction to market design (matching, auctions, kidney exchange).
- Krishna, V. — Auction Theory (2010). Comprehensive treatment of auction formats and their properties.
- Milgrom, P. — Discovering Prices: Auction Design in Markets with Complex Constraints (2017). Modern auction design for spectrum and beyond.
- Mas-Colell, A., Whinston, M. D., & Green, J. R. — Microeconomic Theory (1995). Standard reference for the theoretical foundations.
Tutorials & Courses
Key Concepts
- Incentive compatibility — agents do best by reporting truthfully.
- The revelation principle — any mechanism's outcome can be replicated by a direct, truthful mechanism.
- Matching markets — two-sided markets (school choice, residency matching, organ exchange).
- Metrology — the science of measurement, critical for defining what incentive mechanisms measure and reward.