We consider incentive compatible mechanisms for a domain that is very close to the domain of scheduling @math unrelated machines: the single exception is that the valuation of just one machine is submodular. For the scheduling problem with such cost functions, we give a lower bound of @math on the approximation ratio of incentive compatible deterministic mechanisms. This is a strong information-theoretic impossibility result on the approximation ratio of mechanisms on relatively simple domains. The lower bound of the current work assumes no restriction on the mechanism side, but an expanded class of valuations, in contrast to previous general results on the Nisan-Ronen conjecture that hold for only special classes of mechanisms such as local, strongly monotone, and anonymous mechanisms. Our approach is based on a novel characterization of appropriately selected smaller instances that allows us to focus on particular type of algorithms (linear mechanisms), from which we extract a locality property that gives the lower bound.
Scheduling is related to combinatorial auctions, where multiple items need to be assigned to a set of buyers. This is a broad and successful area, and the setting shares both aforementioned features of multi-dimensionality and lack of externalities, therefore insights and techniques can be transferred from the one problem to the other. However the difference is that the objective for combinatorial auctions is social welfare maximization , and this is known to be achieved by the VCG mechanism, albeit in exponential time. Hence the focus on this rich area is on what can be achieved by computationally efficient mechanisms (see for example @cite_12 ). But in the case of the scheduling with the min-max objective, the flavor is more information theoretic, as we know that not even exponential time mechanisms can achieve the optimal makespan.
@cite_12
203000141
The VCG mechanism is the gold standard for combinatorial auctions (CAs), and it maximizes social welfare. In contrast, the revenue-maximizing (aka optimal) CA is unknown, and designing one is NP-hard. Therefore, research on optimal CAs has progressed into special settings. Notably, Levin [1997] derived the optimal CA for complements when each agent's private type is one-dimensional. (This does not fall inside the well-studied "single-parameter environment".) We introduce a new research avenue for increasing revenue where we poke holes in the allocation space--based on the bids--and then use a welfare-maximizing allocation rule within the remaining allocation set. In this paper, the first step down this avenue, we introduce a new form of "reserve pricing" into CAs. We show that Levin's optimal revenue can be 2-approximated by using "monopoly reserve prices" to curtail the allocation set, followed by welfare-maximizing allocation and Levin's payment rule. A key lemma of potential independent interest is that the expected revenue from any truthful allocation-monotonic mechanism equals the expected virtual valuation; this generalizes Myerson's lemma [1981] from the single-parameter environment. Our mechanism is close to the gold standard and thus easier to adopt than Levin's. It also requires less information about the prior over the bidders' types, and is always more efficient. Finally, we show that the optimal revenue can be 6- approximated even if the "reserve pricing" is required to be symmetric across bidders.