In this paper we consider the pairwise kidney exchange game. This game naturally appears in situations that some service providers benefit from pairwise allocations on a network, such as the kidney exchanges between hospitals. present a @math -approximation randomized truthful mechanism for this problem. This is the best known result in this setting with multiple players. However, we note that the variance of the utility of an agent in this mechanism may be as large as @math , which is not desirable in a real application. In this paper we resolve this issue by providing a @math -approximation randomized truthful mechanism in which the variance of the utility of each agent is at most @math . Interestingly, we could apply our technique to design a deterministic mechanism such that, if an agent deviates from the mechanism, she does not gain more than @math . We call such a mechanism an almost truthful mechanism. Indeed, in a practical scenario, an almost truthful mechanism is likely to imply a truthful mechanism. We believe that our approach can be used to design low risk or almost truthful mechanisms for other problems.
Achieving social welfare optimal mechanisms, which are truthful, is thus not possible. However, achieving approximate truthful mechanisms may be possible. @cite_4 used the same example as in Figure to show that there is no deterministic truthful mechanism for the kidney-exchange game, with approximation ratio better than @math . Moreover, they show that there is no randomized truthful mechanism with an approximation ratio better than @math . They also introduce a deterministic @math -approximation truthful mechanism for the two player kidney exchange game and a randomize @math -approximation truthful mechanism for the multi-agent kidney exchange game. Later @cite_7 improved the approximation ratio for two agents to an expected @math -approximation truthful mechanism. It is conjectured that there is no deterministic constant-approximation truthful mechanism for the multi-agent kidney exchange game, even for three agents @cite_4 .
@cite_4 @cite_7
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We study a mechanism design version of matching computation in graphs that models the game played by hospitals participating in pairwise kidney exchange programs. We present a new randomized matching mechanism for two agents which is truthful in expectation and has an approximation ratio of 3 2 to the maximum cardinality matching. This is an improvement over a recent upper bound of 2 (, 2010 2]) and, furthermore, our mechanism beats for the first time the lower bound on the approximation ratio of deterministic truthful mechanisms. We complement our positive result with new lower bounds. Among other statements, we prove that the weaker incentive compatibility property of truthfulness in expectation in our mechanism is necessary; universally truthful mechanisms that have an inclusion-maximality property have an approximation ratio of at least 2. A long-standing open question in algorithmic mechanism design is whether there exist computationally efficient truthful mechanisms for combinatorial auctions, with performance guarantees close to those possible without considerations of truthfulness. In this article, we answer this question negatively: the requirement of truthfulness can impact dramatically the ability of a mechanism to achieve a good approximation ratio for combinatorial auctions. More precisely, we show that every universally truthful randomized mechanism for combinatorial auctions with submodular valuations that approximates optimal social welfare within a factor of m1 2−e must use exponentially many value queries, where m is the number of items. Furthermore, we show that there exists a class of succinctly represented submodular valuation functions, for which the existence of a universally truthful polynomial-time mechanism that provides an m1 2−e-approximation would imply NP e RP. In contrast, ignoring truthfulness, there exist constant-factor approximation algorithms for this problem, and ignoring computational efficiency, the VCG mechanism is truthful and provides optimal social welfare. These are the first hardness results for truthful polynomial-time mechanisms for any type of combinatorial auctions, even for deterministic mechanisms. Our approach is based on a novel direct hardness technique that completely skips the notoriously hard step of characterizing truthful mechanisms. The characterization step was the main obstacle for proving impossibility results in algorithmic mechanism design so far. This paper deals with the design of efficiently computable incentive compatible, or truthful, mechanisms for combinatorial optimization problems with multi-parameter agents. We focus on approximation algorithms for NP-hard mechanism design problems. These algorithms need to satisfy certain monotonicity properties to ensure truthfulness. Since most of the known approximation techniques do not fulfill these properties, we study alternative techniques.Our first contribution is a quite general method to transform a pseudopolynomial algorithm into a monotone FPTAS. This can be applied to various problems like, e.g., knapsack, constrained shortest path, or job scheduling with deadlines. For example, the monotone FPTAS for the knapsack problem gives a very efficient, truthful mechanism for single-minded multi-unit auctions. The best previous result for such auctions was a 2-approximation. In addition, we present a monotone PTAS for the generalized assignment problem with any bounded number of parameters per agent.The most efficient way to solve packing integer programs (PIPs) is LP-based randomized rounding, which also is in general not monotone. We show that primal-dual greedy algorithms achieve almost the same approximation ratios for PIPs as randomized rounding. The advantage is that these algorithms are inherently monotone. This way, we can significantly improve the approximation ratios of truthful mechanisms for various fundamental mechanism design problems like single-minded combinatorial auctions (CAs), unsplittable flow routing and multicast routing. Our approximation algorithms can also be used for the winner determination in CAs with general bidders specifying their bids through an oracle. Consider a matching problem on a graph where disjoint sets of vertices are privately owned by self-interested agents. An edge between a pair of vertices indicates compatibility and allows the vertices to match. We seek a mechanism to maximize the number of matches despite self-interest, with agents that each want to maximize the number of their own vertices that match. Each agent can choose to hide some of its vertices, and then privately match the hidden vertices with any of its own vertices that go unmatched by the mechanism. A prominent application of this model is to kidney exchange, where agents correspond to hospitals and vertices to donor-patient pairs. Here hospitals may game an exchange by holding back pairs and harm social welfare. In this paper we seek to design mechanisms that are strategyproof, in the sense that agents cannot benefit from hiding vertices, and approximately maximize efficiency, i.e., produce a matching that is close in cardinality to the maximum cardinality matching. Our main result is the design and analysis of the eponymous Mix-and-Match mechanism; we show that this randomized mechanism is strategyproof and provides a 2-approximation. Lower bounds establish that the mechanism is near optimal.