Question
This question refers to the provision of a pure public good (a) Describe a Vickrey Auction and explain why individuals have an incentive to bid
This question refers to the provision of a pure public good
(a) Describe a Vickrey Auction and explain why individuals have an incentive to bid their true valuations.
(b) Explain the Clarke-Groves Mechanism and how the logic of a Vickrey auction carries over to it.
(c) What are the problems with the Clarke-Groves Mechanism .
d) Given an example of a public goods provision mechanism that suffers from problems of strategic manipulation and explain why this is an issue.
Please answer ALL FOUR parts of this question PRECISELY!!!
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Economics
Authors: R. Glenn Hubbard
6th edition
978-0134797731, 134797736, 978-0134106243
