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Register a new userCombinatorial Cost Sharing
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Added by
Shahar Dobzinski
Publication date
2017
fields
Informatics Engineering
and research's language is
English
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We introduce a combinatorial variant of the cost sharing problem: several services can be provided to each player and each player values every combination of services differently. A publicly known cost function specifies the cost of providing every possible combination of services. A combinatorial cost sharing mechanism is a protocol that decides which services each player gets and at what price. We look for dominant strategy mechanisms that are (economically) efficient and cover the cost, ideally without overcharging (i.e., budget balanced). Note that unlike the standard cost sharing setting, combinatorial cost sharing is a multi-parameter domain. This makes designing dominant strategy mechanisms with good guarantees a challenging task. We present the Potential Mechanism -- a combination of the VCG mechanism and a well-known tool from the theory of cooperative games: Hart and Mas-Colells potential function. The potential mechanism is a dominant strategy mechanism that always covers the incurred cost. When the cost function is subadditive the same mechanism is also approximately efficient. Our main technical contribution shows that when the cost function is submodular the potential mechanism is approximately budget balanced in three settings: supermodular valuations, symmetric cost function and general symmetric valuations, and two players with general valuations.
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We make three different types of contributions to cost-sharing: First, we identify several new classes of combinatorial cost functions that admit incentive-compatible mechanisms achieving both a constant-factor approximation of budget-balance and a polylogarithmic approximation of the social cost formulation of efficiency. Second, we prove a new, optimal lower bound on the approximate efficiency of every budget-balanced Moulin mechanism for Steiner tree or SSRoB cost functions. This lower bound exposes a latent approximation hierarchy among different cost-sharing problems. Third, we show that weakening the definition of incentive-compatibility to strategyproofness can permit exponentially more efficient approximately budget-balanced mechanisms, in particular for set cover cost-sharing problems.
Motivated by the emergence of popular service-based two-sided markets where sellers can serve multiple buyers at the same time, we formulate and study the {em two-sided cost sharing} problem. In two-sided cost sharing, sellers incur different costs for serving different subsets of buyers and buyers have different values for being served by different sellers. Both buyers and sellers are self-interested agents whose values and costs are private information. We study the problem from the perspective of an intermediary platform that matches buyers to sellers and assigns prices and wages in an effort to maximize welfare (i.e., buyer values minus seller costs) subject to budget-balance in an incentive compatible manner. In our markets of interest, agents trade the (often same) services multiple times. Moreover, the value and cost for the same service differs based on the context (e.g., location, urgency, weather conditions, etc). In this framework, we design mechanisms that are efficient, ex-ante budget-balanced, ex-ante individually rational, dominant strategy incentive compatible, and ex-ante in the core (a natural generalization of the core that we define here).
We consider the use of cost sharing in the Aspnes model of network inoculation, showing that this can improve the cost of the optimal equilibrium by a factor of $O(sqrt{n})$ in a network of $n$ nodes.
The market economy deals with many interacting agents such as buyers and sellers who are autonomous intelligent agents pursuing their own interests. One such multi-agent system (MAS) that plays an important role in auctions is the combinatorial auctioning system (CAS). We use this framework to define our concept of fairness in terms of what we call as basic fairness and extended fairness. The assumptions of quasilinear preferences and dominant strategies are taken into consideration while explaining fairness. We give an algorithm to ensure fairness in a CAS using a Generalized Vickrey Auction (GVA). We use an algorithm of Sandholm to achieve optimality. Basic and extended fairness are then analyzed according to the dominant strategy solution concept.
We study a fair resource sharing problem, where a set of resources are to be shared among a set of agents. Each agent demands one resource and each resource can serve a limited number of agents. An agent cares about what resource they get as well as the externalities imposed by their mates, whom they share the same resource with. Apparently, the strong notion of envy-freeness, where no agent envies another for their resource or mates, cannot always be achieved and we show that even to decide the existence of such a strongly envy-free assignment is an intractable problem. Thus, a more interesting question is whether (and in what situations) a relaxed notion of envy-freeness, the Pareto envy-freeness, can be achieved: an agent i envies another agent j only when i envies both the resource and the mates of j. In particular, we are interested in a dorm assignment problem, where students are to be assigned to dorms with the same capacity and they have dichotomous preference over their dorm-mates. We show that when the capacity of the dorms is 2, a Pareto envy-free assignment always exists and we present a polynomial-time algorithm to compute such an assignment; nevertheless, the result fails to hold immediately when the capacities increase to 3, in which case even Pareto envy-freeness cannot be guaranteed. In addition to the existential results, we also investigate the implications of envy-freeness on proportionality in our model and show that envy-freeness in general implies approximations of proportionality.
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