We perform systematic density functional studies to elucidate the mechanism of vinyl acetate (VA) synthesison Pd/Au(001). Atomic geometries, activation energies, and reaction energies are determined for three separatereaction stages: coupling of ethylene and acetate;
-H elimination; and VA desorption. Significantly, wefind that the Pd "monomer" pair is much more robust in all three reaction stages than large Pd ensemblessuch as Pd monolayers, mainly due to high mobility of reactants on surrounding Au sites. The remarkablyhigh activity and selectivity of VA reaction on PdAu bimetallic surfaces observed by Goodman et al. areexclusively attributed to the ensemble effects.