Source: wikibot/incentive-compatibility

= Incentive compatibility
{wiki=Incentive_compatibility}

Incentive compatibility is a concept from economics and game theory that refers to a situation where an individual's or agent's optimal strategy is to act in accordance with a certain rule or mechanism, thereby aligning their personal incentives with the desired outcomes of that mechanism. In other words, an incentive-compatible mechanism ensures that participants will find it in their best interest to reveal their true preferences or behaviors, rather than misrepresenting them for personal gain.