Description
Sum signed payments to the mechanism.
Game-theoretic payoffs describe a chosen model of actions and incentives. A deviation, discounted term or local payoff contribution is only one part of the relevant equilibrium or welfare conditions.
Sum signed payments to the mechanism.
When to use this tool
Use Mechanism Budget Balance One Profile when you need one transparent payoff or incentive comparison.
How to use the tool and how it works
- Enter paymentsToMechanism, externalCost. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read netRevenue, surplusAfterCost, budgetBalanced. Inspect budgetBalanced before interpreting the associated values.
Sum signed payments to the mechanism. Subtract externalCost for surplus and compare exact equality with cost for budgetBalanced.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| paymentsToMechanism | Signed amounts, positive into the mechanism and negative out. | Required. Array of finite number; maximum items 256. |
| externalCost | External Cost | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| netRevenue | Net Revenue | Required. Finite number. |
| surplusAfterCost | Surplus After Cost | Required. Finite number. |
| budgetBalanced | Budget Balanced | Required. Boolean. |
{
"input": {
"paymentsToMechanism": [
10,
-4,
-6
],
"externalCost": 0
},
"output": {
"netRevenue": 0,
"surplusAfterCost": 0,
"budgetBalanced": true
}
}Limitations and assumptions
- Positive payments flow into the mechanism; negative payments represent transfers out. One profile's balance does not establish incentive compatibility or balance for every profile.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Evaluate the complete strategy space, timing and payoff model for an equilibrium claim. Test robustness to assumptions rather than treating a local incentive inequality as a prediction of actual behavior.
References
Similar or alternative tools
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