Truthful mechanism design via correlated tree rounding

Yossi Azar, Martin Hoefer, Idan Maor, Rebecca Reiffenhaüser, Berthold Vöcking

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

One of the most powerful algorithmic techniques for truthful mechanism design are maximal-indistributional- range (MIDR) mechanisms. Unfortunately, many algorithms using this paradigm rely on heavy algorithmic machinery and require the ellipsoid method or (approximate) solution of convex programs. In this paper, we present a simple and natural correlated rounding technique for designing mechanisms that are truthful in expectation. Our technique is elementary and can be implemented quickly. The main property we rely on is that the domain offers fractional optimum solutions with a tree structure. In auctions based on the generalized assignment problem, each bidder has a publicly known knapsack constraint that captures the subsets of items that are of value to him. He has a private valuation for each item and strives to maximize the value of assigned items minus payment. For this domain we design a mechanism for social welfare maximization. Our technique gives a truthful 2-approximate MIDR mechanism without using the ellipsoid method or convex programming. In contrast to some previous work, our mechanism achieves exact truthfulness. In restricted-related scheduling with selfish machines, each job comes with a public weight, and it must be assigned to a machine from a public job-specific subset. Each machine has a private speed and strives to maximize payments minus workload of jobs assigned to it. For this domain we design a mechanism for makespan minimization. Although this is a single-parameter domain, the approximation status of the underlying optimization problem is similar to unrelated scheduling: The best known algorithm gives a (nontruthful) 2-approximation for unrelated machines, and there is 1.5-hardness. Our mechanism matches this bound and provides a truthful 2-approximation.

Original languageEnglish
Title of host publicationEC 2015 - Proceedings of the 2015 ACM Conference on Economics and Computation
Pages415-432
Number of pages18
ISBN (Electronic)9781450334105
DOIs
StatePublished - 15 Jun 2015
Event16th ACM Conference on Economics and Computation, EC 2015 - Portland, United States
Duration: 15 Jun 201519 Jun 2015

Publication series

NameEC 2015 - Proceedings of the 2015 ACM Conference on Economics and Computation

Conference

Conference16th ACM Conference on Economics and Computation, EC 2015
Country/TerritoryUnited States
CityPortland
Period15/06/1519/06/15

Keywords

  • Combinatorial auctions
  • Mechanism design
  • Rounding
  • Scheduling mechanisms

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Statistics and Probability
  • Computer Science (miscellaneous)
  • Computational Mathematics
  • Marketing

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