GTNov 17, 2024
On Truthful Mechanisms without Pareto-efficiency: Characterizations and FairnessMoshe Babaioff, Noam Manaker Morag
We consider the problem of allocating heterogeneous and indivisible goods among strategic agents, with preferences over subsets of goods, when there is no medium of exchange. This model captures the well studied problem of fair allocation of indivisible goods. Serial-quota mechanisms are allocation mechanisms where there is a predefined order over agents, and each agent in her turn picks a predefined number of goods from the remaining goods. These mechanisms are clearly strategy-proof, non-bossy, and neutral. Are there other mechanisms with these properties? We show that for important classes of strict ordinal preferences (as lexicographic preferences, and as the class of all strict preferences), these are the only mechanisms with these properties. Importantly, unlike previous work, we can prove the claim even for mechanisms that are not Pareto-efficient. Moreover, we generalize these results to preferences that are cardinal, including any valuation class that contains additive valuations. We then derive strong negative implications of this result on truthful mechanisms for fair allocation of indivisible goods to agents with additive valuations.
56.5GTApr 29
Truthful-in-Expectation Mechanisms for MMS ApproximationMoshe Babaioff, Uriel Feige, Noam Manaker Morag
We study fair allocation of indivisible goods among strategic agents with additive valuations. Motivated by impossibility results for deterministic truthful mechanisms, we focus on randomized mechanisms that are \emph{Truthful-in-Expectation (TIE)}. From a fairness perspective, we seek to guarantee every agent a large fraction of their \emph{Maximin Share (MMS)} ex-post. Among other results, Bu~and~Tao~[FOCS 2025] presented a TIE mechanism that guarantees $\frac{1}{n}$-MMS ex-post. First, we present an ordinal TIE mechanism that guarantees $\frac{1}{H_n + 2}$-MMS ex-post, where $H_n$ is the $n$-th harmonic number ($H_n \simeq \ln n$). This is nearly best possible for ordinal mechanisms, as even non-truthful ordinal allocation algorithms cannot obtain an approximation better than $\frac{1}{H_n}$. We then show that with just a small amount of additional cardinal information, the ex-post guarantee can be improved to $Ω(\frac{1}{\log\log n})$-MMS, at the cost of relaxing the incentive requirement to $(1-\varepsilon(n))$-TIE for negligible $\varepsilon(n)$. Finally, for two agents, we present a TIE mechanism that is $\frac{2}{3}$-MMS ex-post. All our mechanisms are ex-ante proportional (thus also providing ``Best-of-Both-Worlds'' results) and run in polynomial time. Moreover, all our results extend to the truncated proportional share (TPS), which is at least as large as the MMS. Our two-agent $\frac{2}{3}$-TPS result is best possible for the TPS.