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Incentive Compatability Constraint

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PPGPortal > Home > Concept Dictionary > I, J > Incentive Compatability Constraint
 
Incentive Compatibility Constraint 

A concept used to define and design incentive schemes. The incentive compatibility constraint specifies that the utility to a worker choosing to provide an efficient level of effort must be greater than the utility of any other choice of effort.

Dwayne Benjamin, PPG 1002, 2008  

 

     

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