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Incentive Compatability Constraint

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PPG Portal Supplementary Resources > PPG Glossary > I > 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  

 

 

Approved for glossaryposting by Ben Eisen on February 11, 2011