This book combines economic theory and design to create tools that economists can use to apply in social, political and institutional application. It provides readers with the tools to design the rules of economics to harness the power of incentives.
I cowrote this book with four (then) graduate students of mine. It presents the economic theory of incentives formally but with a sustained attempt to make an intrinsically difficult subject more approachable. I am entering March 2009, the publication date in the US, as the "date I read this book" here, because I have not seen a better place for the publication date. I hope you forgive my giving it five stars... I *do* like it a lot, or I wouldn't have published it.