Quantized VCG Mechanisms for Polymatroid Environments
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.
Cite
@article{arxiv.1904.11663,
title = {Quantized VCG Mechanisms for Polymatroid Environments},
author = {Hao Ge and Randall Berry},
journal= {arXiv preprint arXiv:1904.11663},
year = {2019}
}