Leonid Hurwicz

This chapter offers a eulogy for Leonid Hurwicz, who was a transforming figure in modern economic theory. His early theory has found more resonance today among some game theorists, under the name of “algorithmic game theory.” In 1972, Hurwicz restated the problem of choice in decentralized systems. He added the important condition of incentive compatibility to the criteria for a suitable allocation system with decentralized information. He also emphasized the game-theoretic formulation, now as a matter of design. Important as Hurwicz’s work on allocation mechanisms was, it was far from exhausting his contributions to economics. The chapter is augmented by a postscript, a tribute from 1977 when Hurwicz was elected a Distinguished Fellow of the American Economic Association.