What was a common policy under mechanism?

A common policy under mechanism design is the implementation of incentive-compatible mechanisms, which ensure that participants are motivated to reveal their true preferences or types. This often involves creating rules or payment structures that align individual incentives with overall social welfare. For example, auctions are designed to encourage bidders to bid their true valuations, leading to an efficient allocation of resources. Mechanism design is widely used in various fields, including economics, game theory, and public policy.