Related Page:Pages: Game Theory, Incentives, Principal-Agent Problems, Cryptocurrencies and blockchain, Public discourse
Mechanism Design is the theory of how to design incentives for strategic agents, such that the agents acting according to their selfish interests will result in a desired outcome. It can be applied to things like institution design, voting systems, school admissions, regulation of monopolists, market design, and auction design. Think of it as the engineering side of game theory, thinking backward from a desired goal, and designing structures that lead strategic agents to behave in a way that achieves that goal.
See also:Related Page:Game Theory, Incentives, Principal-Agent Problems, Cryptocurrencies and blockchain, Public discourse
I keep wanting to search for Institution Design and finding this tag, which I think used to be called that. My understanding is that Mechanism Design is the technical jargon for some aspects of institution design, but I'm be surprised if it actually covered all the things I want to cover with that. I don't really have a recommendation of what to do but feel the current tag is inadequate in some way.