The Nobel prize this year went to three theorists in the area of mechanism design. This is the best explanation I have found for the beginning economics student to help them understand just what that is.
Essentially, the idea is coming up with ways in which to make markets work more efficiently to produce the optimal outcome, which is at the heart of the field. Every market needs rules, and mechanism design is essential to producing those outcomes in a wide variety of markets. Ebay, a Morroccan Bazzar and the New York Stock Exchange are all markets, and those markets all have their unique rules.
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