3. We have three bidders (A, B and C) and three goods (x, y and z)....

  

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3. We have three bidders (A, B and C) and three goods (x, y and z). The valuations are: VA(x) = 8 VA(Y) = 4 VA(Z) = 0 VA(xy) = 16 VA(x2) = 7 2 VB(x) = 6 VB(Y) = 7 VB (2) = 0 UB (TY) = 12 VB(x2) = 5 vc(x) = 2 vc(y) = 3 vc(z) = 10 ®c(rz)=0 vc(xy) = 9 All the valuations that are missing are assumed to be equal to 0 (so for instance we have vi(ryz) = 0, v; (0)=0 for any bidder i = A, B, C, etc.). Find the allocation and the price paid by each bidder with the VCG auction. [Hint: first figure out who should get z.] 3. We have three bidders (A, B and C) and three goods (x, y and z). The valuations are: VA(x) = 8 VA(Y) = 4 VA(Z) = 0 VA(xy) = 16 VA(x2) = 7 2 VB(x) = 6 VB(Y) = 7 VB (2) = 0 UB (TY) = 12 VB(x2) = 5 vc(x) = 2 vc(y) = 3 vc(z) = 10 ®c(rz)=0 vc(xy) = 9 All the valuations that are missing are assumed to be equal to 0 (so for instance we have vi(ryz) = 0, v; (0)=0 for any bidder i = A, B, C, etc.). Find the allocation and the price paid by each bidder with the VCG auction. [Hint: first figure out who should get z.]

Answer rating: 100% (QA)

Solution Goods As we have three Bidders AB and C and three goods x y z the valuation given could ... View the full answer