We consider a single source network design problem from a game-theoretic perspective. Gupta, Kumar and Roughgarden (Proc. 35th Annual ACM STOC, pages 365–372, 2003) developed a simple method for 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 problem Steiner tree problem; we feel that this idea may have wider implications. Our algorithm is conceptually simpler than the previous such cost-sharing method due to Pál and Tardos (Proc. 44th Annual FOCS, pages 584–593, 2003), and has a much improved approximation factor of 4.6 (over the previously known factor of 15).


Network Design Steiner Tree Network Design Problem Connection Cost Indicator Random Variable 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2004

Authors and Affiliations

  • Anupam Gupta
    • 1
  • Aravind Srinivasan
    • 2
  • Éva Tardos
    • 3
  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

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