No truthful mechanism can be better than approximate for two natural problems
arXiv:1712.06709 · doi:10.1016/j.geb.2018.05.003
Abstract
This work gives the first natural non-utilitarian problems for which the trivial approximation via VCG mechanisms is the best possible. That is, no truthful mechanism can be better than approximate, where is the number of agents. The problems are the min-max variant of shortest path and (directed) minimum spanning tree mechanism design problems. In these procurement auctions, agents own the edges of a network, and the corresponding edge costs are private. Instead of the total weight of the subnetwork, in the min-max variant we aim to minimize the maximum agent cost.
to appear in Games and Economic Behavior