We study a novel class of mechanism design problems in which the outcomes are constrained by the payments. This basic class of mechanism design problems captures many common economic situations, and yet it has not been studied, to our knowledge, in the past. We focus on the case of procurement auctions in which sellers have private costs, and the auctioneer aims to maximize a utility function on subsets of items, under the constraint that the sum of the payments provided by the mechanism does not exceed a given budget. Standard mechanism design ideas such as the VCG mechanism and its variants are not applicable here. We show that, for general functions, the budget constraint can render mechanisms arbitrarily bad in terms of the utility of the buyer. However, our main result shows that for the important class of submodular functions, a bounded approximation ratio is achievable. Better approximation results are obtained for subclasses of the submodular functions. We explore the space of budget feasible mechanisms in other domains and give a characterization under more restricted conditions.
Motivated by many practical applications, in this paper we study {\em budget feasible mechanisms} where the goal is to procure independent sets from matroids. More specifically, we are given a matroid $\mathcal{M}=(E,\mathcal{I})$ where each ground (indivisible) element is a selfish agent. The cost of each element (i.e., for selling the item or performing a service) is only known to the element itself. There is a buyer with a budget having additive valuations over the set of elements $E$. The goal is to design an incentive compatible (truthful) budget feasible mechanism which procures an indep…
In this paper, we show a tight approximation guarantee for budget-feasible mechanisms with an additive buyer. We propose a new simple randomized mechanism with approximation ratio of $2$, improving the previous best known result of $3$. Our bound is tight with respect to either the optimal offline benchmark, or its fractional relaxation. We also present a simple deterministic mechanism with the tight approximation guarantee of $3$ against the fractional optimum, improving the best known result of $(2+ \sqrt{2})$ for the weaker integral benchmark.
We study a class of procurement auctions with a budget constraint, where an auctioneer is interested in buying resources or services from a set of agents. Ideally, the auctioneer would like to select a subset of the resources so as to maximize his valuation function, without exceeding a given budget. As the resources are owned by strategic agents however, our overall goal is to design mechanisms that are truthful, budget-feasible, and obtain a good approximation to the optimal value. Budget-feasibility creates additional challenges, making several approaches inapplicable in this setting. Previ…
We consider the matching with contracts framework of Hatfield and Milgrom when one side (a firm or hospital) can make monetary transfers (offer wages) to the other (a worker or doctor). In a standard model, monetary transfers are not restricted. However, we assume that each hospital has a fixed budget; that is, the total amount of wages allocated by each hospital to the doctors is constrained. With this constraint, stable matchings may fail to exist and checking for the existence is hard. To deal with the nonexistence, we focus on near-feasible matchings that can exceed each hospital budget by…
We study the problem of a budget limited buyer who wants to buy a set of items, each from a different seller, to maximize her value. The budget feasible mechanism design problem aims to design a mechanism which incentivizes the sellers to truthfully report their cost, and maximizes the buyer's value while guaranteeing that the total payment does not exceed her budget. Such budget feasible mechanisms can model a buyer in a crowdsourcing market interested in recruiting a set of workers (sellers) to accomplish a task for her. This budget feasible mechanism design problem was introduced by Singer …
We revisit the well-studied problem of budget-feasible procurement, where a buyer with a strict budget constraint seeks to acquire services from a group of strategic providers (the sellers). During the last decade, several strategyproof budget-feasible procurement auctions have been proposed, aiming to maximize the value of the buyer, while eliciting each seller's true cost for providing their service. These solutions predominantly take the form of randomized sealed-bid auctions: they ask the sellers to report their private costs and then use randomization to determine which subset of services…
We develop and extend a line of recent works on the design of mechanisms for heterogeneous tasks assignment problem in 'crowdsourcing'. The budgeted market we consider consists of multiple task requesters and multiple IoT devices as task executers; where each task requester is endowed with a single distinct task along with the publicly known budget. Also, each IoT device has valuations as the cost for executing the tasks and quality, which are private. Given such scenario, the objective is to select a subset of IoT devices for each task, such that the total payment made is within the allotted …
Throughout the past decade, there has been an extensive research on scheduling the hospital resources such as the operation theatre(s) (OTs) and the experts (such as nurses, doctors etc.) inside the hospitals. With the technological growth, mainly advancement in communication media (such as smart phones, video conferencing, smart watches etc.) one may think of taking the expertise by the doctors (distributed around the globe) from outside the in-house hospitals. Earlier this interesting situation of hiring doctors from outside the hospitals has been studied from monetary (with patient having i…
We consider budget feasible mechanisms for procurement auctions with additive valuation functions. For the divisible case, where agents can be allocated fractionally, there exists an optimal mechanism with approximation guarantee $e/(e-1)$ under the small bidder assumption. We study the divisible case without the small bidder assumption, but assume that the true costs of the agents are bounded by the budget. This setting lends itself to modeling economic situations in which the goods represent time and the agents' true costs are not necessarily small compared to the budget. Non-trivially, we g…
The Nash social welfare (NSW) is a well-known social welfare measurement that balances individual utilities and the overall efficiency. In the context of fair allocation of indivisible goods, it has been shown by Caragiannis et al. (EC 2016 and TEAC 2019) that an allocation maximizing the NSW is envy-free up to one good (EF1). In this paper, we are interested in the fairness of the NSW in a budget-feasible allocation problem, in which each item has a cost that will be incurred to the agent it is allocated to, and each agent has a budget constraint on the total cost of items she receives. We sh…
Online Budget-Feasible Mechanism Design with Predictions
Athens University of Economics and Business（雅典经济与商业大学）；Archimedes, Athena Research Center（阿基米德，雅典研究中心）；Input Output Global (IOG)（输入输出全球（IOG））；Centrum Wiskunde & Informatica (CWI)（数学与计算机科学中心（CWI））；University of Amsterdam（阿姆斯特丹大学）；Technical University of Munich（慕尼黑工业大学）
In the budget-feasible allocation problem, a set of items with varied sizes and values are to be allocated to a group of agents. Each agent has a budget constraint on the total size of items she can receive. The goal is to compute a feasible allocation that is envy-free (EF), in which the agents do not envy each other for the items they receive, nor do they envy a charity, who is endowed with all the unallocated items. Since EF allocations barely exist even without budget constraints, we are interested in the relaxed notion of envy-freeness up to one item (EF1). The computation of both exact a…
The framework of budget-feasible mechanism design studies procurement auctions where the auctioneer (buyer) aims to maximize his valuation function subject to a hard budget constraint. We study the problem of designing truthful mechanisms that have good approximation guarantees and never pay the participating agents (sellers) more than the budget. We focus on the case of general (non-monotone) submodular valuation functions and derive the first truthful, budget-feasible and $O(1)$-approximate mechanisms that run in polynomial time in the value query model, for both offline and online auctions.…
Motivated by large-market applications such as crowdsourcing, we revisit the problem of budget-feasible mechanism design under a "small-bidder assumption". Anari, Goel, and Nikzad (2018) gave a mechanism that has optimal competitive ratio $1-1/e$ on worst-case instances. However, we observe that on many realistic instances, their mechanism is significantly outperformed by a simpler open clock auction by Ensthaler and Giebe (2014), although the open clock auction only achieves competitive ratio $1/2$ in the worst case. Is there a mechanism that gets the best of both worlds, i.e., a mechanism th…
We study a type of reverse (procurement) auction problems in the presence of budget constraints. The general algorithmic problem is to purchase a set of resources, which come at a cost, so as not to exceed a given budget and at the same time maximize a given valuation function. This framework captures the budgeted version of several well known optimization problems, and when the resources are owned by strategic agents the goal is to design truthful and budget feasible mechanisms, i.e. elicit the true cost of the resources and ensure the payments of the mechanism do not exceed the budget. Budge…
We study a classic Bayesian mechanism design setting of monopoly problem for an additive buyer in the presence of budgets. In this setting a monopolist seller with $m$ heterogeneous items faces a single buyer and seeks to maximize her revenue. The buyer has a budget and additive valuations drawn independently for each item from (non-identical) distributions. We show that when the buyer's budget is publicly known, the better of selling each item separately and selling the grand bundle extracts a constant fraction of the optimal revenue. When the budget is private, we consider a standard Bayesia…
We study the social efficiency of several well-known mechanisms for the allocation of a set of available (advertising) positions to a set of competing budget-constrained users (advertisers). Specifically, we focus on the Generalized Second Price auction (GSP), the Vickrey-Clarke-Groves mechanism (VCG) and the Expressive Generalized First Price auction (EGFP). Using the liquid welfare as our efficiency benchmark, we prove a tight bound of 2 on the liquid price of anarchy and stability of these mechanisms for pure Nash equilibria.
We study a participatory budgeting problem, where a set of strategic agents wish to split a divisible budget among different projects, by aggregating their proposals on a single division. Unfortunately, the straight-forward rule that divides the budget proportionally is susceptible to manipulation. In a recent work, Freeman et al. [arXiv:1905.00457] proposed a class of truthful mechanisms, called moving phantom mechanisms. Among others, they propose a proportional mechanism, in the sense that in the extreme case where all agents prefer a single project to receive the whole amount, the budget i…
We study efficiency and budget balance for designing mechanisms in general quasi-linear domains. Green and Laffont (1979) proved that one cannot generically achieve both. We consider strategyproof budget-balanced mechanisms that are approximately efficient. For deterministic mechanisms, we show that a strategyproof and budget-balanced mechanism must have a sink agent whose valuation function is ignored in selecting an alternative, and she is compensated with the payments made by the other agents. We assume the valuations of the agents come from a bounded open interval. Using this result, we fi…
This paper considers prior-independent mechanism design, namely identifying a single mechanism that has near optimal performance on every prior distribution. We show that mechanisms with truthtelling equilibria, a.k.a., revelation mechanisms, do not always give optimal prior-independent mechanisms and we define the revelation gap to quantify the non-optimality of revelation mechanisms. This study suggests that it is important to develop a theory for the design of non-revelation mechanisms. Our analysis focuses on welfare maximization in single-item auctions for agents with budgets and a natura…
Ridesharing has great potential to improve transportation efficiency while reducing congestion and pollution. To realize this potential, mechanisms are needed that allocate vehicles optimally and provide the right incentives to riders. However, many existing approaches consider restricted settings (e.g., only one rider per vehicle or a common origin for all riders). Moreover, naive applications of standard approaches, such as the Vickrey-Clarke-Groves or greedy mechanisms, cannot achieve a polynomial-time, truthful, individually rational and budget balanced mechanism. To address this, we formu…
Incentive mechanism design has aroused extensive attention for crowdsourcing applications in recent years. Most research assumes that participants are already in the system and aware of the existence of crowdsourcing tasks. Whereas in real life scenarios without this assumption, it is a more effective way to leverage incentive tree mechanisms that incentivize both users' direct contributions and solicitations to other users. Although some such mechanisms have been investigated, we are the first to propose budget-consistent incentive tree mechanisms, called generalized lottrees, which require t…
We study the efficiency of mechanisms for allocating a divisible resource. Given scalar signals submitted by all users, such a mechanism decides the fraction of the resource that each user will receive and a payment that will be collected from her. Users are self-interested and aim to maximize their utility (defined as their value for the resource fraction they receive minus their payment). Starting with the seminal work of Johari and Tsitsiklis [Mathematics of Operations Research, 2004], a long list of papers studied the price of anarchy (in terms of the social welfare --- the total users' va…
In a seminal paper, McAfee (1992) presented the first dominant strategy truthful mechanism for double auction. His mechanism attains nearly optimal gain-from-trade when the market is sufficiently large. However, his mechanism may leave money on the table, since the price paid by the buyers may be higher than the price paid to the sellers. This money is included in the gain-from-trade and in some cases it accounts for almost all the gain-from-trade, leaving almost no gain-from-trade to the traders. We present SBBA: a variant of McAfee's mechanism which is strongly budget-balanced. There is a si…
We consider the problem of a revenue-maximizing seller with m items for sale to n additive bidders with hard budget constraints, assuming that the seller has some prior distribution over bidder values and budgets. The prior may be correlated across items and budgets of the same bidder, but is assumed independent across bidders. We target mechanisms that are Bayesian Incentive Compatible, but that are ex-post Individually Rational and ex-post budget respecting. Virtually no such mechanisms are known that satisfy all these conditions and guarantee any revenue approximation, even with just a sing…
