DEFINITION of 'Leonid Hurwicz '

A professor of economics at the University of Minnesota and winner of the 2007 Nobel Prize in Economics, along with Eric Maskin and Roger Myerson, for his research on mechanism design. His theory says that competition is not really perfect because some individuals cheat, and that taking individuals' self-interest into account when designing business transactions can improve outcomes.

BREAKING DOWN 'Leonid Hurwicz '

Hurwicz was born in Moscow in 1917, but he grew up in Poland, where his family relocated when the communists came to power in Russia. As a Jew facing Nazi occupation of Europe, he escaped to the United States, specifically to Chicago, where he had relatives. He audited Ludwig von Mises's courses at the University of Chicago before ending up as a research assistant at the Massachusetts Institute of Technology under fellow economist and Nobel Laureate Paul Samuelson.



RELATED TERMS
  1. Roger B. Myerson

    An American economist and winner of the 2007 Nobel Prize in Economics, ...
  2. Eric S. Maskin

    An American professor of social science at the Institute for ...
  3. Mechanism Design

    A branch of microeconomics that explores how businesses and institutions ...
  4. Daniel Kahneman

    A professor emeritus of psychology and public affairs at Princeton ...
  5. Paul Samuelson

    The first American to win the Nobel Memorial Prize in Economics, ...
  6. Douglass C. North

    An American economist and winner of the 1993 Nobel Memorial Prize ...
Related Articles
  1. Investing

    Nobel Winners Are Economic Prizes

    Before you try to profit from their theories, you should learn about the creators themselves.
  2. Insights

    John Rogers' Success Story: Net Worth, Education & Top Quotes

    Learn how one of the most successful investment managers, John Rogers, founder of Ariel Investments, has achieved star status in the investment world.
  3. Insights

    5 Nobel Prize-Winning Economic Theories You Should Know About

    Here are 5 prize-winning economic theories that you’ll want to be familiar with.
  4. Investing

    Understanding Self-Interest

    Acting in one’s self-interest means to act in the way that is the most personally beneficial.
  5. Financial Advisor

    Jim Rogers Sees 100% Chance of Recession

    Jim Rogers sees a 100% chance of recession within the next year. Why? And how is he planning for it?
  6. Managing Wealth

    Top 5 Positions in John Rogers' Portfolio

    Discover which stocks hold the top five positions in fund manager John Rogers' portfolio, which has outperformed the Russell Midcap Index for 10 straight years.
  7. Investing

    The Dangerous Idea Keeping You From Outsized Gains

    There's a dangerous idea in the world of finance that's been floating around for years. The man who coined this idea won a Nobel Prize for his work, but even he has stated that there are "threats" ...
  8. Investing

    How Influential Economists Changed Our History

    Find out how these five groundbreaking thinkers laid our financial foundations.
  9. Trading

    Trading Is Timing

    Learn how to make gains even if you don't get in at the right time.
  10. Personal Finance

    A Day In The Life Of An Economist

    We've interviewed three economists with very different job descriptions to give you an idea of the many possibilities this career choice offers.
RELATED FAQS
  1. Do all economists believe in perfect competition?

    Find out why neoclassical economists use unrealistic perfect competition models, and learn why other economists criticize ... Read Answer >>
  2. What is the homo economicus?

    Homo economicus or "economic man" is the characterization of man in some economic theories as a rational person who pursues ... Read Answer >>
  3. Are perfect competition models in economics useful?

    Take a look at some of the arguments made by the proponents and critics of the theory of perfect competition in contemporary ... Read Answer >>
  4. How do stockholders use agency theory to affect management?

    Explore the intricacies of agency theory that places stockholders and management in a unique relationship where both parties ... Read Answer >>
  5. What makes command economies fail?

    Read about three competing theories about the failure of socialism and command economies: human incentives, political corruption ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center