In economics

Economics

Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...

, self-revelation is a property

Property (philosophy)

In modern philosophy, logic, and mathematics a property is an attribute of an object; a red object is said to have the property of redness. The property may be considered a form of object in its own right, able to possess other properties. A property however differs from individual objects in that...

 of a mechanism where each agent

Agent (economics)

In economics, an agent is an actor and decision maker in a model. Typically, every agent makes decisions by solving a well or ill defined optimization/choice problem. The term agent can also be seen as equivalent to player in game theory....

maximizes his or her utility (or expected utility) by revealing his or her true type. Self-Revelation is also used as a theme in many literary works.

Self-revelation is widely used in insurance market. This is when high risk parties and low risk parties choose to pay a different risk premium.