Abstract
We consider the facility location problem in a metric space, focusing on the case of three agents. We show that selecting the reported location of each agent with probability proportional to the distance between the other two agents results in a mechanism that is strategyproof in expectation, and dominates the random dictator mechanism in terms of utilitarian social welfare. We further improve the upper bound for three agents on a circle to \(\frac{7}{6}\) (whereas random dictator obtains \(\frac{4}{3}\)); and provide the first lower bounds for randomized strategyproof facility location in any metric space, using linear programming.
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Notes
- 1.
Alon et al. [1] proposed a randomized strategyproof mechanism specifically for circles, called the hybrid mechanism. They showed that it obtains the best possible approximation ratio for the minimax cost, yet for the social cost it achieves a poor approximation ratio of \(\frac{n-1}{2}\).
- 2.
We verified this with Wolfram Alpha.
- 3.
Note that using the reciprocal of the social cost (as in [10]) would lead to a poor outcome in the single facility problem.
- 4.
A mechanism is neutral if it is invariant to renaming of vertices, and anonymous if it is invariant to renaming of agents.
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Acknowledgments
This work was supported in part thanks to the Israeli Science Foundation grant number 773/16.
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Meir, R. (2019). Strategyproof Facility Location for Three Agents on a Circle. In: Fotakis, D., Markakis, E. (eds) Algorithmic Game Theory. SAGT 2019. Lecture Notes in Computer Science(), vol 11801. Springer, Cham. https://doi.org/10.1007/978-3-030-30473-7_2
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