NDLI: Mechanism design: from partial to probabilistic verification

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Mechanism design: from partial to probabilistic verification

Content Provider	ACM Digital Library
Author	Yu, Lan Caragiannis, Ioannis Szegedy, Mario Elkind, Edith
Abstract	Algorithmic mechanism design is concerned with designing algorithms for settings where inputs are controlled by selfish agents, and the center needs to motivate the agents to report their true values. In this paper, we study scenarios where the center may be able to verify whether the agents report their preferences (types) truthfully. We first consider the standard model of mechanism design with partial verification, where the set of types that an agent can report is a function of his true type. We explore inherent limitations of this model; in particular, we show that the famous Gibbard--Satterthwaite impossibility result holds even if a manipulator can only lie by swapping two adjacent alternatives in his vote. Motivated by these negative results, we then introduce a richer model of verification, which we term mechanism design with probabilistic verification. In our model, an agent may report any type, but will be caught with some probability that may depend on his true type, the reported type, or both; if an agent is caught lying, he will not get his payment and may be fined. We characterize the class of social choice functions that can be truthfully implemented in this model. We then proceed to study the complexity of finding an optimal individually rational implementation, i.e., one that minimizes the center's expected payment while guaranteeing non-negative utility to the agent, both for truthful and for non-truthful implementation. Our hardness result for non-truthful implementation answers an open question recently posed by Auletta et al. [2011].
Starting Page	266
Ending Page	283
Page Count	18
File Format	PDF
ISBN	9781450314152
DOI	10.1145/2229012.2229035
Language	English
Publisher	Association for Computing Machinery (ACM)
Publisher Date	2012-06-04
Publisher Place	New York
Access Restriction	Subscribed
Subject Keyword	Algorithmic mechanism design Verification
Content Type	Text
Resource Type	Article

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