Eric Maskin

Mechanism design theory permits economists to identify (1) situations (2) where markets work well and where they do not. For example, it shows why an auction (3) is generally the most efficient way to sell many kinds of goods.

In fact, experts say the theory explains why a version (4) called a double auction is often the best way to trade. In a double auction, buyers and sellers both make price bids (5) .

The Swedish academy (6) says the theory also explains why there is often no good market solution to providing some goods, like uncrowned (7) roads.

Mechanism design theory is part of the wider economic idea of game theory and it has many uses -- including in political science.

(1) identify ： 发现；确定

(2) situations ： 形势；情况；局面

(3) auction ： 拍卖

(4) version ： 一种说法

(5) bids ： ( 拍卖中 ) 喊 ( 价 ) ；出 ( 价 ) ；索 ( 价 )

(6) academy ： 学会

(7) uncrowned ： 无冕统治的