ABSTRACT
Contemporary economic analysis has recognized the importance of “asymmetric information” not only for markets, but also for many different organizations. The resulting “theory of incentives” aims to define rules, or institutional mechanisms, likely to lead individual agents to make collectively optimal choices and to reveal all private information necessary for an efficient collective choice. A new chapter in game theory has thus been opened: the strategic analysis of economic institutions, their stability, or the conditions under which they may be changed.
