Incentive compatibility
id:
incentive-compatibility-189-2185317
title:
Incentive compatibility
text:
In game theory and economics, a mechanism is called incentive-compatible (IC) if every participant can achieve their own best outcome by reporting their true preferences. 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 to high-risk clients. Likewise, they would be worse off if they pretend to be low-risk. Low-risk clients who pretend to be high-risk would also be worse
brand slug:
wiki
category slug:
encyclopedia
description:
Concept in game theory
original url:
https://en.wikipedia.org/wiki/Incentive_compatibility
date created:
2006-05-31T16:13:12Z
date modified:
2024-09-09T03:22:20Z
main entity:
{"identifier":"Q7731670","url":"https://www.wikidata.org/entity/Q7731670"}
image:
fields total:
13
integrity:
15