Vickrey-Clarke-Groves mechanism
- pivotal mechanism
- payment function = max of everyone else's utility when excluding you - when including you (\(i\))
- so if you're not pivotal, you don't pay anything (as you don't change anything)
- can be interpreted as, you get paid the sum of others' utility when you exist, and you pay the sum of others' utility when you don't
- generally >= 0
- social cost of the individual \(i\)
- > 0 → you make things worse by existing
- significance
- internalize the externality of your choice
- how your choice affect others will impact your payment