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Incentive compatibility

In game theory and economics, a mechanism is called incentive-compatible (IC): 415 if every participant can achieve their own best outcome by reporting their true preferences.: 225 For example, there is incentive compatibility if high-risk clients are better off in identifying themselves as high-risk to insurance firms, who only sell discounted insurance…

Art, Typology & In randomized mechanisms

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Typology

Dominant strategyStrategyproofBayesian Nash equilibriumSecond-price auctionsSimple majority vote
8 related topics

In randomized mechanisms

Expected value
1 related topics

Revelation principles

Bayesian game
1 related topics

Overview

Game theoryEconomicsMechanismInsurance firmsLeonid Hurwicz
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In randomized mechanisms

Revelation principles

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Incentive compatibility

Nodes20
Edges19
Triples0
Avg. degree1.9
Density0.1
Components1

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mechanism mechanisms every dsic game worse randomized also incentive-compatibility incentive-compatible best high-risk clients would pretend low-risk revelation truth-telling truthful agent

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