Show that the following is possible: two bidders in a combinatorial auction are given no goods by the VCG mechanism if they bid truthfully, yet both can achieve positive utility if they both submit suitable false bids. Can this ever happen in the Vickrey auction?
Show that the following is possible: two bidders in a combinatorial auction are given no goods by the VCG mechanism if they bid truthfully, yet both can achieve positive utility if they both submit suitable false bids. Can this ever happen in the Vickrey auction?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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