A complete characterization of group-strategyproof mechanisms of cost-sharing

  • Authors:
  • Emmanouil Pountourakis;Angelina Vidali

  • Affiliations:
  • Department of EECS, Northwestern University, Evanston, IL;Max-Planck-Institut für Informatik, Saarbrücken, Germany

  • Venue:
  • ESA'10 Proceedings of the 18th annual European conference on Algorithms: Part I
  • Year:
  • 2010

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Abstract

We study the problem of designing group-strategyproof cost-sharing mechanisms. The players report their bids for getting serviced and the mechanism decides a set of players that are going to be serviced and how much each one of them is going to pay. We determine three conditions: Fence Monotonicity, Stability of the allocation and Validity of the tie-breaking rule that are necessary and sufficient for group-strategyproofness, regardless of the cost function. Consequently, Fence Monotonicity characterizes group-strategyproof cost-sharing schemes closing an important open problem. Finally, we use our results to prove that there exist families of cost functions, where any group-strategyproof mechanism has arbitrarily poor budget balance.