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Part front matter for Part II Mechanisms and Institutions
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Published:May 2022
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Part Two presents Leo’s legacy in the field that he pioneered, mechanism design. These dozen relatively non-technical essays, beginning in 1969 and spanning almost thirty years, originated as talks given at various forums and show the development of his ideas. Chapters 7 and 8 begin with modeling informationally decentralized resource allocation processes which provide an analytical foundation for the debates in the 1930s about the feasibility of socialism due to von Mises, Hayek, Lange, Lerner, and Taylor. Chapter 9 continues with issues of designing mechanisms when markets fail, and Chapter 10 with exploring the interaction of information and incentives within mechanisms. In Chapter 11, he goes back to his original 1960 formulation of resource allocation processes without games and ties it to his work on algorithmic mechanism design with Stanley Reiter (which culminated in a co-authored book in 2006). Chapters 12–17 provide an overview of Leo’s unfinished attempt to formally model institutions and institutional change over the last twenty years of his life. Chapter 18 is a closer look at the idea of enforcement in mechanisms upon which he based his 2007 Nobel lecture. Finally, Chapter 19 is Roger Myerson’s inaugural Hurwicz Lecture at the 2006 North American Econometric Society meetings which follows up on some of the ideas and themes of Chapter 18.
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