# Quantifying inefficiency in cost-sharing mechanisms

@article{Roughgarden2009QuantifyingII, title={Quantifying inefficiency in cost-sharing mechanisms}, author={Tim Roughgarden and Mukund Sundararajan}, journal={J. ACM}, year={2009}, volume={56}, pages={23:1-23:33} }

In a cost-sharing problem, several participants with unknown preferences vie to receive some good or service, and each possible outcome has a known cost. A cost-sharing mechanism is a protocol that decides which participants are allocated a good and at what prices. Three desirable properties of a cost-sharing mechanism are: incentive-compatibility, meaning that participants are motivated to bid their true private value for receiving the good; budget-balance, meaning that the mechanism recovers…

## 49 Citations

Trade-offs in cost sharing

- Economics
- 2009

In a cost-sharing problem, several participants with unknown preferences vie to receive some good or service, and each possible outcome has a known cost. A cost-sharing mechanism is a protocol that…

Approximately Efficient Cost Sharing via Double Auctions∗

- Economics
- 2016

A well-known result in the cost-sharing literature asserts the non-existence of mechanisms that are strategyproof, (weakly) budget balanced, and economically efficient, even when budget balance and…

Quantifying Inefficiency of Fair Cost-Sharing Mechanisms for Sharing Economy

- Computer ScienceIEEE Transactions on Control of Network Systems
- 2018

The inefficiency of distributed decision-making processes under a cost-sharing mechanism by the strong price of anarchy is quantified, showing that the SPoA for equal-split, proportional- split, and usage-based cost sharing (under certain conditions) is only moderate inefficiency.

To Be or Not to Be ( Served ) : Cost Sharing Without Indifferences ∗

- Economics
- 2010

In a cost-sharing problem, finitely many players have unknown valuations for some service, and a mechanism is sought for determining which players to serve and how to distribute the incurred cost. An…

Combinatorial Cost Sharing

- EconomicsEC
- 2017

The Potential Mechanism is presented -- a combination of the VCG mechanism and a well-known tool from the theory of cooperative games: Hart and Mas-Colell's potential function, a dominant strategy mechanism that always covers the incurred cost.

Is Shapley Cost Sharing Optimal ? ∗ ( For the special issue in honor of Lloyd Shapley )

- Computer Science
- 2016

For the public excludable good problem, the Shapley value mechanism minimizes the worst-case efficiency loss over all truthful, deterministic, and budget-balanced mechanisms that satisfy equal treatment.

Cost Sharing in Two-Sided Markets

- EconomicsSAGT
- 2021

This framework designs mechanisms that are efficient, ex-ante budget-balanced,Ex-ante individually rational, dominant strategy incentive compatible, and ex-antes in the core (a natural generalization of the core that is defined here).

Network Cost-Sharing without Anonymity

- EconomicsTEAC
- 2016

These primary results are tight bounds on the cost of strong Nash equilibria and potential function minimizers in network cost-sharing games with nonanonymous cost functions, parameterized by the set C of allowable submodular cost functions.

Network Cost-Sharing without Anonymity

- MathematicsSAGT
- 2014

Tight bounds on the cost of strong Nash equilibria and potential function minimizers in network cost-sharing games with non-anonymous cost functions, parameterized by the set \(\mathcal{C}\) of allowable submodular cost functions are found.

## References

SHOWING 1-10 OF 75 REFERENCES

New trade-offs in cost-sharing mechanisms

- EconomicsSTOC '06
- 2006

It is shown that incentive-compatibility, budget-balance, and approximate efficiency are simultaneously achievable for a wide range of cost functions, where efficiency is measured using the social cost---the sum of the incurred service cost and the excluded valuations.

Optimal Efficiency Guarantees for Network Design Mechanisms

- EconomicsIPCO
- 2007

This work proves for the first time that approximate budget-balance and efficiency are simultaneously possible in a cost-sharing problem and proves a new, optimal lower bound on the approximate efficiency achievable by the wide and natural class of "Moulin mechanisms".

Limitations of cross-monotonic cost sharing schemes

- Computer ScienceSODA '05
- 2005

This paper investigates the limitations imposed by the cross-monotonicity property on cost-sharing schemes for several combinatorial optimization games including edge cover, vertex cover, set cover, metric facility location, maximum flow, arborescence packing, and maximum matching, and develops a novel technique based on the probabilistic method for proving upper bounds on the budget-balance factor ofCross-monotonic cost sharing schemes.

Incremental cost sharing: Characterization by coalition strategy-proofness

- Economics
- 1999

Abstract. Each one of n users consumes an idiosyncratic commodity produced in indivisible units. The n commodities are jointly produced by a central facility and total cost must be shared by the…

Strategyproof cost-sharing Mechanisms for Set Cover and Facility Location Problems

- Computer Science
- 2002

This paper obtains strategyproof cost allocations for two fundamental games whose underlying optimization problems are NP-hard, the set cover game and the facility location game and obtains a strategyproof mechanism based on a constant factor approximation algorithm.

The Price of Stability for Network Design with Fair Cost Allocation

- EconomicsFOCS
- 2004

It is established that the fair cost allocation protocol is in fact a useful mechanism for inducing strategic behavior to form near-optimal equilibria, and its results are extended to cases in which users are seeking to balance network design costs with latencies in the constructed network.

The price of stability for network design with fair cost allocation

- Economics45th Annual IEEE Symposium on Foundations of Computer Science
- 2004

It is established that the fair cost allocation protocol is in fact a useful mechanism for inducing strategic behavior to form near-optimal equilibria, and its results are extended to cases in which users are seeking to balance network design costs with latencies in the constructed network.

Cost-Sharing Mechanisms for Network Design

- Mathematics, Computer ScienceAPPROX-RANDOM
- 2004

A single source network design problem from a game-theoretic perspective and shows how to use a variant of this method to develop an approximately budget-balanced and group strategyproof cost-sharing method for the problem.

Cost-Sharing Mechanisms for Network Design

- Computer ScienceAlgorithmica
- 2007

The algorithm is conceptually simpler than the previous such cost-sharing method due to Pál and Tardos, and improves the previously-known approximation factor of 15 to 4.6.