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Hence, demand-based pricing helps ensure incentive-compatibility. Computational markets that have demand-driven pricing may however still not be incentive compatible.
Our main result shows that in such type spaces, a mechanism is locally incentive compatible and payment-only incentive compatible if and only if it is incentive compatible.
I do agree that you have to make the system incentive compatible.
Furthermore, the authors prove that their approach is incentive compatible; they also report extensive simulation experiments.
We consider locally incentive compatible mechanisms with deterministic allocation rules and transfers with quasilinear utility.
Finally, within a weak coalition, interest groups must design incentive compatible collusive mechanisms to share information.
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In addition, one-and-half-bounded approach may be non-incentive compatible (Bateman et al. 2009).
Such a protocol is called incentive-compatible (IC).
As we can observe in the picture, the depicted allocation is incentive-compatible.
The auction is shown to be incentive-compatible, individually rational, budget balanced, monotonic, and convergent.
We present a randomized incentive-compatible polynomial-time approximation scheme for multi-unit auctions.
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