Network Design White Papers
Optimal Efficiency Guarantees for Network Design Mechanisms
Overview A cost-sharing problem is defined by a set of players vying to receive some good or service, and a cost function describing the cost incurred by the auctioneer as a function of the set of winners. A cost-sharing mechanism is a protocol that decides which players win the auction and at what prices. Three desirable but provably mutually incompatible properties of a cost-sharing mechanism are: incentive-compatibility, meaning that players are motivated to bid their true private value for receiving the good; budget-balance, meaning that the mechanism recovers its incurred cost with the prices charged; and efficiency, meaning that the cost incurred and the value to the players served are traded o in an optimal way.
| Publisher | Stanford University | File Format | |
|---|---|---|---|
| Date Published | January 2007 | ||
| Format | White Papers | ||
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