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vcgCert
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IndisputableMonolith.GameTheory.MechanismDesignFromSigma on GitHub at line 335.
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332 (winner v₀ v₁ = 0 ∧ v₀ ≥ v₁) ∨ (winner v₀ v₁ = 1 ∧ v₀ < v₁)
333
334/-- The master certificate is inhabited. -/
335def vcgCert : VCGCert where
336 dsic_zero := dsic_agent_zero
337 dsic_one := dsic_agent_one
338 truthful_is_nash := truthful_is_nash
339 pivot_identity := pivot_identity
340 sigma_conservation := sigma_conservation_truthful
341 payment_eq_sigma_cost := vcg_payment_eq_sigma_cost
342 welfare_optimal := welfare_optimal_truthful
343
344/-! ## §8. One-statement summary -/
345
346/-- **VCG ONE-STATEMENT THEOREM.**
347
348For the single-item second-price auction with two agents:
349
350(1) **DSIC.** Truthful reporting is dominant for each agent over the
351 full bid space `ℝ`.
352(2) **Pivot identity.** The winner pays the loser's bid (= the
353 σ-cost the winner imposes on the loser).
354(3) **σ-conservation.** Total surplus on the utility ledger plus
355 payments equals the winner's valuation = `max v₀ v₁` (social welfare).
356(4) **Welfare optimality.** The truthful allocation maximizes social
357 welfare. -/
358theorem vcg_one_statement :
359 -- (1) DSIC for agent 0.
360 (∀ (v₀ b₁ b₀' : ℝ), utility₀ v₀ b₀' b₁ ≤ utility₀ v₀ v₀ b₁) ∧
361 -- (2) DSIC for agent 1.
362 (∀ (v₁ b₀ b₁' : ℝ), utility₁ v₁ b₀ b₁' ≤ utility₁ v₁ b₀ v₁) ∧
363 -- (3) Pivot identity (when 0 wins).
364 (∀ (v₀ v₁ : ℝ), v₀ ≥ v₁ → payment₀ v₀ v₁ = v₁) ∧
365 -- (4) σ-conservation under truthful.