DEFINITION of 'Roger B. Myerson'
An American economist and winner of the 2007 Nobel Prize in Economics, along with Leonid Hurwicz and Eric Maskin. Myerson's award-winning research deals with mechanism design theory. Born in Boston in 1951, he earned a PhD in applied math from Harvard. He was a professor of economics at Northwestern University's Kellogg School of Management for 25 years and then became a professor of economics at the University of Chicago.
BREAKING DOWN 'Roger B. Myerson'
Myerson's revenue equivalence theorem, now widely used in auction design, was his major contribution to mechanism design theory. Mechanism design theory explains how institutions can achieve social or economic goals given the constraints of individuals' self-interest and incomplete information.