Ball, Ian; Kattwinkel, Deniz - In: Theoretical economics : TE ; an open access journal in … 20 (2025) 4, pp. 1247-1284
We introduce a model of probabilistic verification in mechanism design. The principal elicits a message from the agent and then selects a test to give the agent. The agent's true type determines the probability with which he can pass each test. We characterize whether each type has an associated...