Experimentalists have been so sure of the incentive compatibility of this mechanism in practice that they often explicitly inform their subjects that it is in the respondents' interest to report their true reservation prices, or words to that effect. However, as is reported here, it turns out...

Preference reversal (PR) means that an individual's choice a direct reflection of his preferences between two options is inconsistent with the ranking of his (selling) reservation prices an indirect reflection of his preferences. Such choice/reservation-price inconsistency is potential...