Dynamic Mechanism Design

  • Davide Bilò
  • Luciano Gualà
  • Guido Proietti
Conference paper

DOI: 10.1007/11944874_2

Part of the Lecture Notes in Computer Science book series (LNCS, volume 4286)
Cite this paper as:
Bilò D., Gualà L., Proietti G. (2006) Dynamic Mechanism Design. In: Spirakis P., Mavronicolas M., Kontogiannis S. (eds) Internet and Network Economics. WINE 2006. Lecture Notes in Computer Science, vol 4286. Springer, Berlin, Heidelberg

Abstract

In this paper we address the question of designing truthful mechanisms for solving optimization problems on dynamic graphs. More precisely, we are given a graph G of n nodes, and we assume that each edge of G is owned by a selfish agent. The strategy of an agent consists in revealing to the system the cost for using its edge, but this cost is not constant and can change over time. Additionally, edges can enter into and exit from G. Among the various possible assumptions which can be made to model how these edge-cost modifications take place, we focus on two settings: (i) the dynamic, in which modifications are unpredictable and time-independent, and for a given optimization problem on G, the mechanism has to maintain efficiently the output specification and the payment scheme for the agents; (ii) the time-sequenced, in which modifications happens at fixed time steps, and the mechanism has to minimize an objective function which takes into consideration both the quality and the set-up cost of a new solution. In both settings, we investigate the existence of exact and approximate truthful mechanisms. In particular, for the dynamic setting, we analyze the minimum spanning tree problem, and we show that if edge costs can only decrease, then there exists an efficient dynamic truthful mechanism for handling a sequence of k edge-cost reductions having runtime \({\cal O}(h \log n +k \log^4 n)\), where h is the overall number of payment changes.

Keywords

Algorithmic Mechanism Design On-line Problems Dynamic Algorithms Approximate Mechanisms 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2006

Authors and Affiliations

  • Davide Bilò
    • 1
  • Luciano Gualà
    • 1
  • Guido Proietti
    • 1
    • 2
  1. 1.Dipartimento di InformaticaUniversità di L’AquilaItaly
  2. 2.Istituto di Analisi dei Sistemied Informatica, CNRRomaItaly

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