A mechanism that creates the incentive for people to reveal their public goods preferences in a truthful manner is called a Lindahl-revealing mechanism.

Question

Quizplus · Accepted Answer

The correct term is a Lindahl tax, not a Lindahl-revealing mechanism. A Lindahl tax is a theoretical concept that aims to efficiently distribute the cost of public goods based on individuals' marginal benefit, thereby encouraging them to reveal their true preferences for public goods.

A Mechanism That Creates the Incentive for People to Reveal