Leonid Hurwicz

AAA

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.

INVESTOPEDIA EXPLAINS '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. Perfect Competition

    A market structure in which the following five criteria are met: ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects ...
  3. Economist

    An expert who studies the relationship between a society's resources ...
  4. Dismal Science

    A term coined by Scottish writer, essayist and historian Thomas ...
  5. Microeconomics

    The branch of economics that analyzes the market behavior of ...
  6. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
Related Articles
  1. Economics

    Understanding Supply-Side Economics

    Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.
  2. Options & Futures

    Nobel Winners Are Economic Prizes

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

    The Uncertainty Of Economics: Exploring The Dismal Science

    Learning about the study of economics can help you understand why you face contradictions in the market.
  4. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  5. Entrepreneurship

    Adam Smith And "The Wealth Of Nations"

    Adam Smith's 1776 classic may have had the largest global impact on economic thought.
  6. Investing Basics

    Muriel Siebert: Female Finance Pioneer

    Muriel Siebert has blazed many paths for investors, but is especially relevant as the first woman to sit on the NYSE.
  7. Investing Basics

    4 Signs You're Addicted To Investing

    Compulsive trading will ratchet up your transaction costs, stress level and time spent away from the important things in life.
  8. Investing Basics

    The Intelligent Investor: Benjamin Graham

    Learn about the man who mentored Warren Buffett, who eventually became the investing "Oracle of Omaha".
  9. Economics

    Adam Smith: The Father Of Economics

    This free thinker promoted free trade at a time when governments controlled most commercial interests.
  10. Active Trading

    Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.

You May Also Like

Hot Definitions
  1. Loan-To-Value Ratio - LTV Ratio

    A lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage.
  2. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  3. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  4. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  5. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  6. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
Trading Center