In order to Tax non-monetary property and wealth the government sets an arbitrary price (they are not even personalized assesments) and often people transact below that price. I have bought and sold below that price. I want my government to declare the highest price it would buy at if I so decided.
Government: X is worth Y
Me: Sold (or not if I so wish)
How can we force (make an incentive compatible mechanism for) the government to reveil its indifference price towards all goods/property to be Taxed?
I want to solve an optimization problem to confirm the incentive compatibility. I am hoping for a stable equilibrium where not only an increase/decrease in the price (any deviation from the indifference price) puts the government in a worse position but also if the government were to declare any other price it would always improve its position be moving closer (the utility function should be unimodal with the mode equal to the government's indifference price and it should have no other local maximum) There should be uncertanty (the government doesn't know the Tax payers' reservation price otherwise the best choice would be to declare their reservation price over your own indifference price).