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Abstract

An important research thread in algorithmic game theory studies the design of efficient truthful mechanisms that approximate the optimal social welfare. A fundamental question is whether an α-approximation algorithm translates into an α-approximate truthful mechanism. It is well-known that plugging an α-approximation algorithm into the VCG technique may not yield a truthful mechanism. Thus, it is natural to investigate properties of approximation algorithms that enable their use in truthful mechanisms.

The main contribution of this paper is to identify a useful and natural property of approximation algorithms, which we call loser-independence; this property is applicable in the single-minded and single-parameter settings. Intuitively, a loser-independent algorithm does not change its outcome when the bid of a losing agent increases, unless that agent becomes a winner. We demonstrate that loser-independent algorithms can be employed as sub-procedures in a greedy iterative packing approach while preserving monotonicity. A greedy iterative approach provides a good approximation in the context of maximizing a non-decreasing submodular function subject to independence constraints. Our framework gives rise to truthful approximation mechanisms for various problems. Notably, some problems arise in online mechanism design.

Proofs and details omitted from this extended abstract appear in the full version of this paper. The first author was partially supported by NSF grants CCF-0728782 and CNS-0721899. The second author was supported by the Binational Science Foundation, by the Israel Science Foundation, by the European Commission under the Integrated Project QAP funded by the IST directorate as Contract Number 015848, and by a European Research Council (ERC) Starting Grant.

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Chekuri, C., Gamzu, I. (2009). Truthful Mechanisms via Greedy Iterative Packing. In: Dinur, I., Jansen, K., Naor, J., Rolim, J. (eds) Approximation, Randomization, and Combinatorial Optimization. Algorithms and Techniques. APPROX RANDOM 2009 2009. Lecture Notes in Computer Science, vol 5687. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-03685-9_5

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  • DOI: https://doi.org/10.1007/978-3-642-03685-9_5

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