Understanding Mechanism Design—Part 2 of 3: The Vickrey-Clarke-Groves Mechanism

As we saw in the first part of this short series, a mechanism design problem involves engineering rules game so that, if participants then behave rationally (by choosing strategies that maximize their expected utility, for example), result will satisfy some desired property. So far, however, have said nothing about what these desirable properties might be, or mechanisms achieve them. Here, dig into two issues little more detail.