The main application of game theory to IF comes through a technique known as mechanism design. In a mechanism design problem a designer, a principal, (a seller of a good, a government, a board of directors, etc.) tries to design an economic mechanism (a pricing schedule, a tax code, an employment contract, etc.) to achieve a certain social or economic objective.
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Mas-Colell, A., M.D. Whinston, and J.R. Green. 1995. Microeconomic theory. Oxford: Oxford University Press.
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Basov, S., Bhatti, I. (2016). The Revelation Principle. In: Islamic Finance in the Light of Modern Economic Theory. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-28662-8_7
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DOI: https://doi.org/10.1057/978-1-137-28662-8_7
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