Local incentive compatibility on gross substitutes and other non-convex type-spaces
Article Type
Research Article
Publication Title
Journal of Mathematical Economics
Abstract
We explore the equivalence of local incentive compatibility (LIC) (Carroll 2012) and incentive compatibility (IC) in non-convex type-spaces. We provide a sufficient condition on a type-space called richness for the said equivalence. Using this result, we show that LIC and IC are equivalent on large class of non-convex type-spaces which include the gross substitutes type-space and the generalized gross substitutes and complements type-space. Finally, we provide a geometric property consisting of three conditions for the equivalence of LIC and IC, and show that all the conditions are indispensable.
DOI
10.1016/j.jmateco.2024.102989
Publication Date
6-1-2024
Recommended Citation
Kumar, Ujjwal and Roy, Souvik, "Local incentive compatibility on gross substitutes and other non-convex type-spaces" (2024). Journal Articles. 4886.
https://digitalcommons.isical.ac.in/journal-articles/4886