Consider a public project with the cost of 500. There are three individuals with the following benefits for the public good: v1=400, v2=200 and v3=0. Which of the following statement is false about the VCG (Vickrey-Clarke-Groves) mechanism? None of the options The budget deficit is 200 VCG mechanism is strategy-proof The tax for individual 3 is equal to 0 The tax for individual 1 is equal to 300
Consider a public project with the cost of 500. There are three individuals with the following benefits for the public good: v1=400, v2=200 and v3=0. Which of the following statement is false about the VCG (Vickrey-Clarke-Groves) mechanism? None of the options The budget deficit is 200 VCG mechanism is strategy-proof The tax for individual 3 is equal to 0 The tax for individual 1 is equal to 300
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Consider a public project with the cost of 500. There are three individuals with the following benefits for the public good: v1=400, v2=200 and v3=0.
Which of the following statement is false about the VCG (Vickrey-Clarke-Groves) mechanism?
None of the options
The budget deficit is 200
VCG mechanism is strategy-proof
The tax for individual 3 is equal to 0
The tax for individual 1 is equal to 300
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