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Bad result
There can't be an auction which is:
1. Truthful
2. Efficient in allocation
3. Does not require investment of money from the outside
It is sometimes better not to sell.
Second price with reserve
Revelation principle
Lookahead
Vickrey–Clarke–Groves (VCG) auction
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Several items, truthful, optimal allocation
Each bidder tells his valuation to every subset of the items. The auctioneer then assigns the items optimally to the bidders by an optimal allocation according to the valuations they claimed to have.
Each bidder then pays the others the damage he has caused them by these valuations.
This is truthful. Proof?
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