Hi,

Please help with exercise 3.4. This is the textbook: http://jasonhartline.com/MDnA/MDnA-ch1to8.pdf

3.4 Consider the non-downward closed environment of public projects: either every agent can be served or none of them. I.e., the cost structure satisfies: 0 if iXi = 0, c(x) = 10 if Exi = n, and oo otherwise. (a) Describe the revenue-optimal mechanism for general distribu- tions. (b) Describe the revenue-optimal mechanism when agents' values are i.i.d. from U[0, 1]. (c) Give an asymptotic, in terms of the number n of agents, analysis of the expected revenue of the revenue-optimal public project mechanism when agents' values are i.i.d. from U[0, 1]