English

Credibility Trilemma in Polymatroidal Service Markets

Computer Science and Game Theory 2026-05-27 v1 Distributed, Parallel, and Cluster Computing Networking and Internet Architecture Theoretical Economics

Abstract

Mechanism-mediated service markets with polymatroidal feasibility admit efficient, dominant-strategy incentive-compatible (DSIC) allocation, but these guarantees implicitly assume truthful execution by the marketplace operator. Modelling the operator as a strategic player, we establish a credibility trilemma: for single-parameter agents on a non-modular polymatroid, no static sealed-bid mechanism is simultaneously revenue-optimal, DSIC for agents, and credible for the operator. We introduce the Cost of Non-Credibility (CoNC) as a price-of-anarchy-style welfare-loss measure and obtain tight Θ\Theta-bounds across five topology classes (single-edge, series, parallel, tree, series-parallel), plus a matching upper bound O(S)O(|\mathcal{S}|) on general DAGs realised by an Ω(S)\Omega(|\mathcal{S}|) witness on the SP-augmented sub-family, turning the trilemma into a structural quantity. Three structurally distinct resolutions follow: public broadcast or deferred-revelation commitment, administrative domain separation under settlement separation and four side conditions, and integrator competition orthogonal to mechanism execution under disjoint actors. An instance-level grounding over the edge-pricing market of Amin et al. confirms the trilemma's robustness on a refereed external setting. The result establishes marketplace neutrality as a first-order design constraint on polymatroidal service markets rather than an implementation detail: where the operator is a strategic player, credibility trades off against revenue optimality and agent incentive compatibility along structurally characterised lines.

Cite

@article{arxiv.2605.26604,
  title  = {Credibility Trilemma in Polymatroidal Service Markets},
  author = {Lauri Lovén and Sujit Gujar and Kalle Timperi and Hassan Mehmood and Praveen Kumar Donta and Sasu Tarkoma and Schahram Dustdar},
  journal= {arXiv preprint arXiv:2605.26604},
  year   = {2026}
}

Comments

75 pages, 3 figures. Prepared for submission to the ACM Transactions on Economics and Computation (TEAC)

R2 v1 2026-07-22T07:33:54.646Z