Black-box reductions for cost-sharing mechanism design

We consider the design of strategyproof cost-sharing mechanisms. We give two simple, but extremely versatile, black-box reductions, that in combination reduce the cost-sharing mechanism-design problem to the algorithmic problem of finding a minimum-cost solution for a set of players. Our first reduction shows that any truthful, α-approximation mechanism for the socialcost minimization (SCM) problem satisfying a technical no-bossiness condition can be morphed into a truthful mechanism that achieves an O(α log n)-approximation where the prices recover the cost incurred. Thus, we decouple the task of truthfully computing an outcome with near-optimal social cost from the cost-sharing problem. This is fruitful since truthful mechanism-design, especially for single-dimensional problems, is a relatively well-understood and manageable task. Our second reduction nicely complements the first one by showing that any LP-based ρ-approximation for the problem of finding a min-cost solution f...

• Type: Journal
• Year: 2012
• Where: SODA
• Authors: Konstantinos Georgiou, Chaitanya Swamy
• Keywords: Algorithmic Problem, Algorithms, Dimensional Problems, Manageable Task, SODA 2012