On the Incentive Property of the Iterative Multiple Price List
15 Pages Posted: 27 May 2010
Date Written: October 12, 2006
This slide shows a rare example in which the iMPL is not incentive compatible. Harrison et al. (2005) propose the Iterative Multiple Price List (iMPL), which is a very convenient and clever design to elicit subject’s preference in laboratory. Since a non-iterative MPL is incentive compatible, its iteration for the finer grid seems to be incentive compatible as well. But, in some rare cases, it is not. This slide illustrates one of those cases.
Keywords: Iterative Multiple Price List, MPL
JEL Classification: C9, C91, D81
Suggested Citation: Suggested Citation