On decentralized incentive compatible mechanisms

  • Authors:
  • Ahuva Mu'alem

  • Affiliations:
  • Hebrew University of Jerusalem

  • Venue:
  • Proceedings of the 6th ACM conference on Electronic commerce
  • Year:
  • 2005

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Abstract

Algorithmic Mechanism Design focuses on Dominant Strategy Implementations. The main positive results are the celebrated Vickrey-Clarke-Groves (VCG) mechanisms and computationally efficient mechanisms for severely restricted players ("single-parameter domains"). As it turns out, many natural social goals cannot be implemented using the dominant strategy concept [35, 32, 22, 20]. This suggests that the standard requirements must be relaxed in order to construct general-purpose mechanisms.We observe that in many common distributed environments computational entities can take advantage of the network structure to collect and distribute information. We thus suggest a notion of partially informed environments. Even if the information is recorded with some probability, this enables us to implement a wider range of social goals, using the concept of iterative elimination of weakly dominated strategies. As a result, cooperation is achieved independent of agents' belief. As a case study, we apply our methods to derive Peer-to-Peer network mechanism for file sharing.