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Incentive compatibility & participation constraints (Separating Eqbm & Mechanism Design)
8:07
YouTubeAshley Hodgson
Incentive compatibility & participation constraints (Separating Eqbm & Mechanism Design)
This video walks you through an example of Mechanism Design problem from Hal Varian's Microeconomics textbook where you set up both participation constraints and incentive compatibility constraints. It is a Principal-Agent separating equilibrium problem where the employer decides what educational requirement will cause the high productivity ...
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