Definition VCG Welfare Without Agent i
definition formalized

VCG Welfare Without Agent i

The "welfare-without-$i$" construction strips agent $i$'s own value contribution from the social welfare functional, retaining only the other agents' valuations at the same allocation: $$ W_{-i}(v, a) \;=\; \sum_{j \neq i} v_j(a). $$

Together with maxWelfareWithout v i := \max_a W_{-i}(v, a) it underpins the Clarke-pivot payment $p_i(v) = \max_a W_{-i}(v, a) - W_{-i}(v, a^*)$ (see [[mechanism_design.vcg.payment_identity]]).

Core identities and bounds

  • Decomposition (socialWelfare_eq_value_add_welfareWithout): $W(v, a) = v_i(a) + W_{-i}(v, a)$ for every agent $i$ and allocation $a$.
  • Monotonicity (welfareWithout_le_socialWelfare): $W_{-i}(v, a) \le W(v, a)$ when $v_i(a) \ge 0$, with a non-negativity variant welfareWithout_le_socialWelfare_of_nonneg_i.
  • Report independence (welfareWithout_update_self, maxWelfareWithout_update_self): replacing agent $i$'s reported valuation does not change $W_{-i}$ or its max — by construction, agent $i$'s report is the one term excluded from the sum. This is the strategic core of the Clarke pivot: agent $i$ cannot influence $\max_a W_{-i}$.
  • Existence and choice (exists_withoutAllocation, withoutAllocation, withoutAllocation_isOptimal): a welfare- without-$i$-maximising allocation always exists for finite $A$ and is selected noncomputably via choice.

References

  • [AGT Chapter 9, §9.3.4, Def 9.19] Nisan, Roughgarden, Tardos, and Vazirani, Algorithmic Game Theory. Clarke-pivot payments.

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