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A mechanism is called incentive-compatible (IC) if every participant can achieve the best outcome to themselves just by acting according to their true preferences.: 225
There are several different degrees of incentive-compatibility:
Every DSIC mechanism is also BNIC, but a BNIC mechanism may exist even if no DSIC mechanism exists.
Typical examples of DSIC mechanisms are majority voting between two alternatives, and second-price auction.
Typical examples of a mechanisms that are not DSIC are plurality voting between three or more alternatives and first-price auction.