= Vickrey-Clarke-Groves mechanism
{c}
= VCG mechanism
{c}
{synonym}
= Clarke pivot mechanism
{c}
{synonym}
The pivot form chooses a reported-welfare-maximizing allocation and charges each agent the maximum welfare achievable by the others without that agent minus the others' welfare in the chosen allocation. With <quasilinear utility>, truthful reporting is a dominant strategy because the first term in the payment depends only on other reports. For two identical items and three unit-demand bidders, each winner pays the lowest reported valuation and the loser pays zero.
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