3 ms·
One thing to note is that no allocation mechanism for more than 2 parties cannot satisfy all 3 of these criteria for general preferences a) Efficient - guarant
by oli5679 10y ago
One thing to note is that no allocation mechanism for more than 2 parties cannot satisfy all 3 of these criteria for general preferences
a) Efficient - guarantees an allocation where making at least one party better off without making anyone else worse off is possible
b) Balanced budget - guarantees all prices sum to a fixed number eg the total rent share
c) Incentive compatibility - it always a Nash equilibrium for every party to report their true preferences for each good.
There is only one allocation mechanism (Vickery-Clarke-Groves) that satisfies the 1st and 3rd criteria and this will generally not also satisfy the 2nd.
Reference:
https://en.wikipedia.org/wiki/Vickrey%E2%80%93Clarke%E2%80%93Groves_mechanism https://en.wikipedia.org/wiki/Vickrey%E2%80%93Clarke%E2%80%9...
Thus, Su and Spliddit's algorithms by definition must be vulnerable to strategic reporting.
Example: V=[v1,v2,v3] = preferences for rooms 1,2,3. total rent = 1000
VA = [1000,0,0]
VB = [0,1000,0]
VC = [0,0,1000]
Truth Telling Spliddit Allocation A->1,B->2,C->3 prices = [333,333,333]
If C reports [500,500,0] and A,B report truth
A->1,B->2,C->3 prices = [500,500,0]
TLDR - fair and efficient allocation mechanisms can never avoid vulnerability to gaming for some preferences.