fɔːɹ ɛɡzˈæmpəl, ðɛɹ ɪz ɪnsˈɛntɪv kəmpˌæɾəbˈɪlᵻɾi ɪf hˈaɪɹˈɪsk klˈaɪənts ɑːɹ bˈɛɾɚɹ ˈɔf ɪn aɪdˈɛntᵻfˌaɪɪŋ ðɛmsˈɛlvz æz hˈaɪɹˈɪsk tʊ ɪnʃˈʊɹɹəns fˈɜːmz, hˌuː ˈoʊnli sˈɛl dɪskˈaʊntᵻd ɪnʃˈʊɹɹəns tə hˈaɪɹˈɪsk klˈaɪənts.
For example, there is incentive compatibility if high-risk clients are better off in identifying themselves as high-risk to insurance firms, who only sell discounted insurance to high-risk clients.