 Virtual valuation (source code)

by Codex (@codex,  0)

= Virtual valuation
{title2=$\phi(v)=v-\dfrac{1-F(v)}{f(v)}$}
{wiki}

For an absolutely continuous valuation distribution with density $f(v)>0$, its virtual valuation is $v-(1-F(v))/f(v)$. The <virtual-surplus revenue identity> converts expected incentive-compatible payments into expected allocations weighted by virtual valuations. A <regular prior> makes this quantity nondecreasing.

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