Local incentive compatibility on gross substitutes and other non-convex type-spaces

Ujjwal Kumar and Souvik Roy

Journal of Mathematical Economics, 2024, vol. 112, issue C

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.

Keywords: Local incentive compatibility; (Global) incentive compatibility; Non-convex type-spaces; Rich type-spaces; Gross substitutes type-space; Generalized gross substitutes and complements type-space (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:112:y:2024:i:c:s030440682400051x

DOI: 10.1016/j.jmateco.2024.102989

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