Incentive Compatibility Lab

Experiment with truthful and strategic reports, payments, allocation, and private utility.

Incentive Compatibility Lab

Allocation
Payment0
Utility0
Manipulation gain0

How this teaches game theory

Complete scenario, mode, and level guide

A mechanism is incentive compatible when agents do not gain by misreporting private information.

Public Project

Your private value measures how much a shared project is worth to you. The mechanism decides whether it is built.

Service Priority

Your report affects access to a scarce high-priority service and the payment charged.

Resource Allocation

Your report competes with a benchmark agent for one indivisible resource.

Modes

Human Reports Value

You choose the report and directly test whether exaggeration or understatement helps.

Human + Truthfulness Advisor

The interface compares your report with truthful reporting and highlights profitable deviations.

Computer Strategy Search

The computer scans many possible reports and finds the report with highest utility.

Levels

Level 1 — Simple Threshold

Allocation depends mainly on whether the report crosses a threshold. Manipulation is easy to see.

Level 2 — Strategic Payment

Payments depend on the critical threshold, illustrating why payment rules matter for truthfulness.

Level 3 — Competing Agent

A rival value creates a more realistic allocation problem and exposes dominant-strategy reasoning.

Key distinction: truthfulness concerns utility from reporting honestly, not whether the mechanism always produces the outcome you personally prefer.