On Revenue Optimal Combinatorial Auctions - IFP Group at the ...

Does It Work?
Buyer 1 Buyer 2
1
1/2 1/2
Bundle {A}
Bundle {A} Bundle {A,B}
1
1/2 1/2 9/10 1/10
$1 $2 $4 $2 $4
__ __ __ __ __
W = $1 W = $0 W = $4 W = $16/9 W = $4
For the bid ({A}, $4), buyer 2 gets the bundle {A} for $4.
For the bid ({A, B}, $4), buyer 2 gets the bundle {A, B} for $2.
Thus, buyer 2 will misreport type ({A}, $4) as ({A, B}, $4).
A counter example!