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Frugal path mechanisms Export

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frugal mechanismdesign

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We consider the problem of selecting a low cost s t path in a graph, where the edge costs are a secret known only to the various economic agents who own them. To solve this problem, Nisan and Ronen applied the celebrated Vickrey-Clarke-Groves (VCG) mechanism, which pays a premium to induce the edges to reveal their costs truthfully. We observe that this premium can be unacceptably high. There are simple instances where the mechanism pays #(n) times the actual cost of the path, even if...


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