Incentive compatibility

means that the situation in which an individual makes a choice has such properties that the individual finds it in their best interest to respond truthfully (not to strategically misrepresent their preferences). It is important in Discrete Choice Experiments (DCEs) and experimental economicssubfield of economics that uses experimental methods/economic experiments to study individual and collective decision-making. By giving the researcher freedom to manipulate factors of interest, difficulties to establish causal rel... More, as it is a necessary condition for the observed values to be interpreted as individual’s true (not mis-represented) preferences.