How do you figure out step 3 for production cost report

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Clark-Groves Mechanism: A process that will get individuals to truthfully reveal their preferences for the public good. Suppos the public good provider is making decision on whether to build a bridge, ie, the public good in question is discrete - 0 or 1. And the goal is to achieve efficiency.

Step 1 : Invidivual report their value for the bridge vi, no need to report the truth vi#vi*

Step 2 : Add up reported value

Step 3 : If, (Sum of reports - cost of bridge)> 0 => buildt the bridge, If ( Sum of reports - Cost of bridges)< 0=""> don't build the bridge.

Step 4 : If the individual's value was decisive, (Sum of other's report) < (cost="" of="" bridge)="">< (sum="" of="" all="" reports)="">

Charge the individual = (cost of bridge) - (sum of other's report)

Clark-Groves Mechanism is Incentive Compatible.

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