Abstract
Most allocation problems on markets are computationally hard. Approximation mechanisms aim for truthfulness and polynomial runtime with provable solution quality. In a seminal contribution, Lavi and Swamy (2011) provide a black-box reduction from approximation algorithms to approximation mechanisms that are truthful-in-expectation without degrading the approximation ratio. This yields a very general approach to designing approximation mechanisms for many market design problems. However, the framework requires a convex decomposition of fractional linear programming solutions. Until recently, the only known polynomial-time decomposition technique relied fundamentally on the notoriously inefficient ellipsoid method. To address this issue, we present a simple and much faster decomposition technique based on an effective geometric algorithm. After a formal comparison of the worst-case performance with a recently published alternative decomposition technique, we conduct an extensive experimental evaluation based on a coordination problem in logistics to show the advantages of the geometric algorithm. The evaluation illustrates runtimes one can expect in a realistic environment and simplifies the application of relax-and-round mechanisms in practice.
| Original language | English |
|---|---|
| Pages (from-to) | 277-287 |
| Number of pages | 11 |
| Journal | Computers and Operations Research |
| Volume | 103 |
| DOIs | |
| State | Published - Mar 2019 |
Keywords
- Algorithmic mechanism design
- Approximation algorithms
- Linear programming
- Logistics
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