An example of mechanism design is
A) a non-profit charity that pays all employees a low fixed salary.
B) welfare policy that has no limits on the amount of time a person can collect benefits.
C) health insurance with co-pays.
D) lower prices for airline ticket purchases made several months prior to the travel date.

Question

Quizplus · Accepted Answer

Mechanism design involves creating systems or incentives to encourage desired behaviors. Health insurance with co-pays is an example because the co-pay mechanism is designed to prevent overuse of healthcare services by making patients bear part of the cost.

An Example of Mechanism Design Is