, Volume 50, Issue 1, pp 98–119

Cost-Sharing Mechanisms for Network Design


DOI: 10.1007/s00453-007-9065-y

Cite this article as:
Gupta, A., Srinivasan, A. & Tardos, É. Algorithmica (2008) 50: 98. doi:10.1007/s00453-007-9065-y


We consider a single-source network design problem from a game-theoretic perspective. Gupta, Kumar and Roughgarden (Proc. 35th Annual ACM STOC, pp. 365–372, 2003) developed a simple method for a single-source rent-or-buy problem that also yields the best-known approximation ratio for the problem. We show how to use a variant of this method to develop an approximately budget-balanced and group strategyproof cost-sharing method for the problem.

The novelty of our approach stems from our obtaining the cost-sharing methods for the rent-or-buy problem by carefully combining cost-shares for the simpler Steiner tree problem. Our algorithm is conceptually simpler than the previous such cost-sharing method due to Pál and Tardos (Proc. 44th Annual FOCS, pp. 584–593, 2003), and improves the previously-known approximation factor of 15 to 4.6.

Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  1. 1.Department of Computer ScienceCarnegie Mellon UniversityPittsburghUSA
  2. 2.Department of Computer Science and University of Maryland Institute for Advanced Computer StudiesUniversity of Maryland at College ParkCollege ParkUSA
  3. 3.Department of Computer ScienceCornell UniversityIthacaUSA