https://cuicaihao.github.io/tags/system-design/Recent content in System Design on C.CUI's LogHugoen-AUWed, 10 Jun 2026 07:00:00 +1000https://cuicaihao.github.io/posts/2026-06-10-incentive-compatibility/Wed, 10 Jun 2026 07:00:00 +1000https://cuicaihao.github.io/posts/2026-06-10-incentive-compatibility/The modern world runs on neither Confucian moral education nor Legalist coercion, but on ‘Incentive Compatibility.’ A good system acknowledges self-interest and information asymmetry, designing rules so that ordinary people naturally fulfill system goals while pursuing their own. Drawing from the Mechanism Design theories of Nobel laureates Leonid Hurwicz and Roger Myerson, this post explores how modern institutional design—from sales commissions to the four pillars of factory management—makes human nature work for the order.https://cuicaihao.github.io/posts/2026-06-10-market-for-lemons/Wed, 10 Jun 2026 07:00:00 +1000https://cuicaihao.github.io/posts/2026-06-10-market-for-lemons/The most terrifying aspect of a lemon market is not the presence of bad goods, but that good ones cannot be identified and are forced to exit, causing a ‘death spiral.’ The remedy is not moral pleas or raw force, but building ‘procedural justice.’ Through signaling, escrow transactions, and public peer review, quality and intention reveal themselves. This post explores how we transform ‘subjective goodness’ into ‘verifiable procedures’—from used cars to Taobao escrow, and from workplace reviews to academic peer evaluation—allowing human nature to make smart, rational choices under the light.