The power of two prices: beyond cross-monotonicity

  • Authors:
  • Yvonne Bleischwitz;Burkhard Monien;Florian Schoppmann;Karsten Tiemann

  • Affiliations:
  • Faculty of Computer Science, Electrical Engineering and Mathematics, University of Paderborn, Paderborn, Germany and International Graduate School of Dynamic Intelligent Systems;Faculty of Computer Science, Electrical Engineering and Mathematics, University of Paderborn, Paderborn, Germany;Faculty of Computer Science, Electrical Engineering and Mathematics, University of Paderborn, Paderborn, Germany and International Graduate School of Dynamic Intelligent Systems;Faculty of Computer Science, Electrical Engineering and Mathematics, University of Paderborn, Paderborn, Germany and International Graduate School of Dynamic Intelligent Systems

  • Venue:
  • MFCS'07 Proceedings of the 32nd international conference on Mathematical Foundations of Computer Science
  • Year:
  • 2007

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Abstract

Assuming strict consumer sovereignty (CS*), when can costsharing mechanisms simultaneously be group-strategyproof (GSP) and β-budget-balanced (ß-BB)? Moulin mechanisms are GSP and 1-BB for submodular costs. We overcome the submodularity requirement and instead consider arbitrary--yet symmetric--costs: - Already for 4 players, we show that symmetry of costs is not sufficient for the existence of a GSP and 1-BB mechanism. However, for only 3 players, we give a GSP and 1-BB mechanism. - We introduce two-price cost-sharing forms (2P-CSFs) that define players' cost shares and present a novel mechanism that is GSP given any such 2P-CSF. For subadditive costs, we give an algorithm to compute 2P-CSFs that are √17+1/4 -BB (≈ 1.28). This result is then shown to be tight for 2P-CSFs. Yet, this is a significant improvement over 2-BB, which is the best Moulin mechanisms can achieve. We give applications to the minimum makespan scheduling problem. A key feature of all our mechanisms is a preference order on the set of players. Higher cost shares are always payed by least preferred players.