Indirect preference revelation X2 z is not affordable when x* is chosen X* is not affordable when y*is chosen So x and z cannot be compared x* directly. But x y b y and y 6 SO X*Zz is not affordable when x* is chosen. x* is not affordable when y* is chosen. So x* and z cannot be compared directly. Indirect Preference Revelation x2 x1 x* y* z But x*x* y* and y* z so x* z. D p D p I p