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arXiv · 1904.11663

Quantized VCG Mechanisms for Polymatroid Environments

Hao Ge·Randall Berry
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Abstract

Many network resource allocation problems can be viewed as allocating a divisible resource, where the allocations are constrained to lie in a polymatroid. We consider market-based mechanisms for such problems. Though the Vickrey-Clarke-Groves (VCG) mechanism can provide the efficient allocation with strong incentive properties (namely dominant strategy incentive compatibility), its well-known high communication requirements can prevent it from being used. There have been a number of approaches for reducing the communication costs of VCG by weakening its incentive properties. Here, instead we take a different approach of reducing communication costs via quantization while maintaining VCG's dominant strategy incentive properties. The cost for this approach is a loss in efficiency which we characterize. We first consider quantizing the resource allocations so that agents need only submit a finite number of bids instead of full utility function. We subsequently consider quantizing the agent's bids.

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Hao Ge, Randall Berry. 2019-04-26. Quantized VCG Mechanisms for Polymatroid Environments. https://doi.org/10.1145/3323679.3326524

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