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.

Chapter9: Decision Making Under Uncertainty

Section9.4: The Precision Tree Add-in

Problem 9P

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