Talk:Incentive compatibility
Latest comment: 9 years ago by Pajz in topic Doesn't seem right
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WikiProject class rating edit
This article was automatically assessed because at least one WikiProject had rated the article as stub, and the rating on other projects was brought up to Stub class. BetacommandBot 16:24, 9 November 2007 (UTC)
Doesn't seem right edit
Not my field, but: The name does not seem to match the definition currently in there. Incentive compatible doesn't sound like something limited to information revealing. The definition in [1] is indeed broader.
Stangaa (talk) 14:50, 2 October 2013 (UTC)
- Hi Stangaa, in terms of intuition you're indeed right. It depends a bit on the application you choose, i.e. if you implement an auction mechanism, then it usually just boils down to truth-telling. It appears to be more complicated to apply this to, say, a contract, where incentive compatibility often means that a particular party has an incentive to do what she's supposed to do. But, point is, economically speaking, there is no real difference here. You can reduce this to revealing private information as well because if the contractor reveals their inclination to not work, then this would be priced in accordingly / the contract would not have been concluded in fist place. That said, I agree with your suggestion to provide a broader definition like in the Dictionary of Economics; that'd be more intuitive in some applications. Cheers, — Pajz (talk) 21:43, 1 June 2014 (UTC)