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Level 22
· ◆◆◆◆ · ~12 min
Screening
Screening
"The uninformed side's move: design a menu so that each type, acting purely selfishly, picks the option meant for them and reveals itself doing so."
screening vs signallingself-selection and incentive compatibilitythe deductible menusecond-degree price discriminationwhy the good type must be left a rent
A short lesson, then a quiz. ❤️×3 — a wrong answer costs a heart; finish with at least one left and the level is yours. Lose all three and you'll have to try again. Replay any time — XP and cleared levels are never lost.