STSTEER

Bayesian Incentive Compatibility

The ability to select a mechanism wherein a strategy in a Bayes–Nash equilibrium is to report preferences truthfully.

Question template

You are advising the residents of Maple Street, who are deciding whether to fund a shared solar battery. There are n word residents. Each resident's value for a shared solar battery is private; the values are independent and uniformly distributed between $0 and vmax, everyone is risk-neutral, and all of this is common knowledge. The decision rule: Each resident reports a value. If the reports add up to at least the cost of cost, the project goes ahead and each resident pays a share of the cost proportional to their report; otherwise nothing is built and nobody pays. Is it a Bayes-Nash equilibrium for every resident to report exactly their own value?

Use it

from datasets import load_dataset
ds = load_dataset("narunraman/steer", "bic_mechanism")