Revelation Principle

The Revelation Principle is a concept in economics and game theory that suggests any outcome achievable through a complex, strategic interaction can also be achieved if each participant truthfully reports their preferences or information. Essentially, it means that for designing mechanisms or rules, one can focus on scenarios where people are honest about what they want, simplifying analysis and ensuring that the desired results are attainable. This principle helps in designing effective systems like auctions, contracts, or regulations by assuming truthful communication to predict and achieve optimal outcomes.