Bayesian-optimal mechanism

ID: bayesian-optimal-mechanism

The concept of a **Bayesian-optimal mechanism** arises in the field of mechanism design, which deals with creating rules or structures that lead to desirable outcomes in economic or strategic settings where players have private information. A Bayesian-optimal mechanism is one that maximizes the expected utility of the designer (or allocator) under the assumption that players have independent private valuations or types.

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