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.
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.