Collusion-Resistant Mechanisms with Verification Yielding Optimal Solutions

  • Authors:
  • Paolo Penna;Carmine Ventre

  • Affiliations:
  • Dipartimento di Informatica ed Applicazioni, Università di Salerno, Italy;Computer Science Department, University of Liverpool, UK

  • Venue:
  • ESA '08 Proceedings of the 16th annual European symposium on Algorithms
  • Year:
  • 2008

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Abstract

A truthful mechanismconsists of an algorithm augmented with a suitable payment function which guarantees that "players" cannot improve their utilities by "cheating". Mechanism design approaches are particularly appealing for designing "protocols" that cannot be manipulated by rational players.We present new constructions of so called mechanisms with verificationintroduced by Nisan and Ronen [STOC 1999]. We first show how to obtain mechanisms that, for single-parameter domains, are resistant to coalitionsof colluding agents even in the case in which compensation among members of the coalition is allowed (i.e., n-truthfulmechanisms). Based on this technique we derive a class of exacttruthful mechanisms with verification for arbitrarybounded domains. This class of problems includes most of the problems studied in the algorithmic mechanism design literature and for which exact solutions cannot be obtained with truthful mechanisms without verification. This result improves over all known previous constructions of exact mechanisms with verification.