The incentive compatibility constraint requires that incentives be consistent with a consumers budget constraint.

Name: The incentive compatibility constraint requires that incentives be consistent with a consumers budget constraint.
Brand: Quizplus
Rating: 4.8 (29 reviews)

Question

Quizplus · Accepted Answer

The incentive compatibility constraint ensures that each participant's self-reported information, such as preferences or types, in a mechanism or contract, aligns with their true information to encourage honest reporting, rather than aligning with their budget constraint.

The Incentive Compatibility Constraint Requires That Incentives Be Consistent with a Consumers