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In some cases there are more than two prices. The individual actions usually are dependent from the information of others but in one case called “Dominant strategy” the tactic implements the revelation principle where there is incomplete information, or the firms are not utilizing the information that they have. In this case, the firm reports truthfully on what the best strategy would be. Myerson also states that “the revelation principle asserts that any rational equilibrium of individual behavior in any social institution must be equivalent to an incentive-compatible coordination plan.”
An example of the incentive-compatible coordination plan would be the deductable in car insurance...
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