An Introduction to the Theory of Mechanism Design
Tilman Borgers, Contributions by Daniel Krahmer, and Roland Strausz
Reviews and Awards
"Tilman Borgers offers the first book-length introduction into the theory of mechanism design. Written in a very personal and masterful style, he carefully covers the main developments in theory of mechanism design-the theory of how to choose the rules of the game-over the past decades. It will be an ideal textbook for advanced undergraduate and graduate courses for many years to come." Dirk Bergemann, Douglass and Marion Campbell Professor of Economics and Chair, Yale University
"Tilman Borgers gives a beautifully lucid and elegant development of mechanism design in this wonderful book. His masterful exposition provides a unified and cohesive treatment of modern mechanism design, starting from first principles and working through topics at the leading edge of the research frontier. This book is a delight and an invaluable resource for those new to the field and experts alike." Chris Shannon, Richard and Lisa Steiny Professor of Economics and Professor of Mathematics, University of California, Berkeley
"This book provides an integrated treatment of the theory of mechanism design by a leading practitioner in this area. It covers the core theory together with chapters on recent developments in robust mechanism design and dynamic mechanism design. The core theory is built up in an original and pedagogically successful way, starting with screening in chapter 2 and immediately using those tools to develop leading applications of Bayesian mechanism design-auctions, bilateral trade, and public goods-in chapter 3. These results can then naturally be adapted to dominant strategies in chapter 4. Chapters 5, 6, and 7 then deal with the general theories of incentive compatibility, Bayesian mechanism design, and dominant strategy mechanism design.
The first seven chapters of the book focus on the quasi-linear environments studied in most economic applications, with more general environments ('non-transferable utility') postponed to chapter 8. This ordering of material reflects not the historical development of the subject but a natural and effective path to learn the material. Borgers develops a unified treatment of core material without attempting to be exhaustive. Valuable endnotes at the end of each chapter then explain the historical context and relation to the literature more broadly. It will serve as an excellent textbook for graduate students and advanced undergraduates, and an invaluable reference for researchers." Stephen Morris, Professor of Economics, Princeton University