Mechanism Design Theory in Control Engineering: A Tutorial and Overview of Applications in Communication, Power Grid, Transportation, and Security Systems

Abstract: This article provides an introduction to the theory of mechanism design and its application to engineering problems. Our aim is to provide the fundamental principles of the theory of mechanism design for control engineers and theorists along with the state-of-the-art methods in engineering applications. We start our exposition with a brief overview of game theory highlighting the key notions that are necessary to introduce mechanism design, and then we offer a comprehensive discussion of the principles in mechanism design. Finally, we explore four key applications of mechanism design in engineering, i.e., communication networks, power grids, transportation, and security systems.