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Participation constraint (mechanism design)

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Participation constraint (mechanism design)

In game-theory, and particularly mechanism-design, participation constraints or individual rationality constraints are said to be satisfied if a mechanism leaves all participants at least as well-off as they would have been if they hadn't participated.

In terms of information structure, there are 3 types of Participation Constraints:

One kind of participation constraint is the participation criterion for voting systems. It requires that by voting, a voter should not decrease the odds of their preferred candidates winning.

See also * Individual rationality * Compensating variation

References