algo-ad-vcg

Installation
SKILL.md

VCG Mechanism (Vickrey-Clarke-Groves)

Overview

VCG allocates slots to maximize total social welfare and charges each winner the externality they impose on others. Truthful bidding is a dominant strategy. Runs in O(N log N + K × N) where N=bidders, K=slots.

When to Use

Trigger conditions:

  • Designing an incentive-compatible (truthful) multi-slot auction
  • Computing welfare-maximizing allocations with externality pricing
  • Academic analysis comparing VCG to GSP auctions

When NOT to use:

  • When revenue maximization matters more than truthfulness (GSP often generates more revenue)
  • For single-item auctions (standard Vickrey suffices)

Algorithm

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Installs
17
GitHub Stars
190
First Seen
Apr 10, 2026