Incentive compatible multiagent constraint optimization

  • Authors:
  • Adrian Petcu;Boi Faltings

  • Affiliations:
  • Ecole Polytechnique Federale de Lausanne (EPFL), Lausanne, Switzerland;Ecole Polytechnique Federale de Lausanne (EPFL), Lausanne, Switzerland

  • Venue:
  • WINE'05 Proceedings of the First international conference on Internet and Network Economics
  • Year:
  • 2005

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Abstract

We present in this paper an incentive-compatible distributed optimization method applied to social choice problems. The method works by computing and collecting VCG taxes in a distributed fashion. This introduces a certain resilience to manipulation from the problem solving agents. An extension of this method sacrifices Pareto-optimality in favor of budget-balance: the solutions chosen are not optimal anymore, but the advantage is that the self interested agents pay the taxes between themselves, thus producing no tax surplus. This eliminates unwanted incentives for the problem solving agents, ensuring their faithfulness.