Utilitarian mechanism design for multi-objective optimization

• Authors: Fabrizio Grandoni;Piotr Krysta;Stefano Leonardi;Carmine Ventre
• Venue: SODA '10 Proceedings of the twenty-first annual ACM-SIAM symposium on Discrete Algorithms
• Year: 2010

In a classic optimization problem the complete input data is known to the algorithm. This assumption may not be true anymore in optimization problems motivated by the Internet where part of the input data is private knowledge of independent selfish agents. The goal of algorithmic mechanism design is to provide (in polynomial time) a solution to the optimization problem and a set of incentives for the agents such that disclosing the input data is a dominant strategy for the agents. In case of NP-hard problems, the solution computed should also be a good approximation of the optimum. In this paper we focus on mechanism design for multi-objective optimization problems, where we are given the main objective function, and a set of secondary objectives which are modeled via budget constraints. Multi-objective optimization is a natural setting for mechanism design as many economical choices ask for a compromise between different, partially conflicting, goals. Our main contribution is showing that two of the main tools for the design of approximation algorithms for multi-objective optimization problems, namely approximate Pareto curves and Lagrangian relaxation, can lead to truthful approximation schemes. By exploiting the method of approximate Pareto curves, we devise truthful FPTASs for multi-objective optimization problems whose exact version admits a pseudo-polynomial-time algorithm, as for instance the multi-budgeted versions of minimum spanning tree, shortest path, maximum (perfect) matching, and matroid intersection. Our technique applies also to multi-dimensional knapsack and multi-unit combinatorial auctions. Our FPTASs compute a (1 + ε)-approximate solution violating each budget constraint by a factor (1 + ε). For a relevant sub-class of the mentioned problems we also present a PTAS (not violating any constraint), which combines the approach above with a novel monotone way to guess the heaviest elements in the optimum solution. Finally we present a universally truthful Las Vegas PTAS for minimum spanning tree with a single budget constraint. This result is based on the Lagrangian relaxation method, in combination with our monotone guessing step and a random perturbation step (ensuring low expected running time in a way similar to the smoothed analysis of algorithms). All the mentioned results match the best known approximation ratios, which however are obtained by non-truthful algorithms.