A demand-revealing mechanism creates the incentive for people to reveal their public goods preferences in a

Question

Quizplus · Accepted Answer

A demand-revealing mechanism is designed to encourage people to reveal their true preferences for public goods. If people are encouraged to choose truthfully, then the mechanism can accurately reflect the collective preferences of the group, which can inform decision-making about the provision of public goods. Choosing deceptively or probabilistically undermines the accuracy of the mechanism and can lead to inefficient outcomes.

A Demand-Revealing Mechanism Creates the Incentive for People to Reveal