It is well-known that for several natural decision problems no budget
balanced Groves mechanisms exist. This has motivated recent research on
designing variants of feasible Groves mechanisms (termed as `redistribution of
VCG (Vickrey-Clarke-Groves) payments') that generate reduced deficit. With this
in mind, we study sequential mechanisms and consider optimal strategies that
could reduce the deficit resulting under the simultaneous mechanism. We show
that such strategies exist for the sequential pivotal mechanism of the
well-known public project problem. We also exhibit an optimal strategy with the
property that a maximal social welfare is generated when each player follows
it. Finally, we show that these strategies can be achieved by an implementation
in Nash equilibrium.Comment: 19 pages. The version without the appendix will appear in the Proc.
2nd International Symposium on Algorithmic Game Theory, 200