Groves mechanism

The Groves mechanism is a method used in economics and game theory to ensure people truthfully report their preferences or valuations in a decision-making process. It encourages honest sharing by designing payments so that no one benefits from lying. Typically used in auctions and resource allocation, the mechanism aligns individual incentives with overall efficiency. Participants are motivated to reveal their true values because doing so leads to the best outcome for everyone, including themselves, which results in a fair and efficient allocation of resources or goods.