Cardinal-Utility Matching Markets: The Quest for Envy-Freeness, Pareto-Optimality, and Efficient Computability

Fuente: arXiv
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Autores principales: Tröbst, Thorben, Vazirani, Vijay V.
Formato: Preprint
Publicado: 2024
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author Tröbst, Thorben
Vazirani, Vijay V.
author_facet Tröbst, Thorben
Vazirani, Vijay V.
contents Unlike ordinal-utility matching markets, which are well-developed from the viewpoint of both theory and practice, recent insights from a computer science perspective have left cardinal-utility matching markets in a state of flux. The celebrated pricing-based mechanism for one-sided cardinal-utility matching markets due to Hylland and Zeckhauser, which had long eluded efficient algorithms, was finally shown to be intractable; the problem of computing an approximate equilibrium is PPAD-complete. This led us to ask the question: is there an alternative, polynomial time, mechanism for one-sided cardinal-utility matching markets which achieves the desirable properties of HZ, i.e. (ex-ante) envy-freeness (EF) and Pareto-optimality (PO)? We show that the problem of finding an EF+PO lottery in a one-sided cardinal-utility matching market is by itself already PPAD-complete. However, a $(2 + ε)$-approximately envy-free and (exactly) Pareto-optimal lottery can be found in polynomial time using the Nash-bargaining-based mechanism of Hosseini and Vazirani. Moreover, the mechanism is also $(2 + ε)$-approximately incentive compatible. We also present several results on two-sided cardinal-utility matching markets, including non-existence of EF+PO lotteries as well as existence of justified-envy-free and weak Pareto-optimal lotteries.
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id arxiv_https___arxiv_org_abs_2402_08851
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publishDate 2024
record_format arxiv
spellingShingle Cardinal-Utility Matching Markets: The Quest for Envy-Freeness, Pareto-Optimality, and Efficient Computability
Tröbst, Thorben
Vazirani, Vijay V.
Computer Science and Game Theory
Unlike ordinal-utility matching markets, which are well-developed from the viewpoint of both theory and practice, recent insights from a computer science perspective have left cardinal-utility matching markets in a state of flux. The celebrated pricing-based mechanism for one-sided cardinal-utility matching markets due to Hylland and Zeckhauser, which had long eluded efficient algorithms, was finally shown to be intractable; the problem of computing an approximate equilibrium is PPAD-complete. This led us to ask the question: is there an alternative, polynomial time, mechanism for one-sided cardinal-utility matching markets which achieves the desirable properties of HZ, i.e. (ex-ante) envy-freeness (EF) and Pareto-optimality (PO)? We show that the problem of finding an EF+PO lottery in a one-sided cardinal-utility matching market is by itself already PPAD-complete. However, a $(2 + ε)$-approximately envy-free and (exactly) Pareto-optimal lottery can be found in polynomial time using the Nash-bargaining-based mechanism of Hosseini and Vazirani. Moreover, the mechanism is also $(2 + ε)$-approximately incentive compatible. We also present several results on two-sided cardinal-utility matching markets, including non-existence of EF+PO lotteries as well as existence of justified-envy-free and weak Pareto-optimal lotteries.
title Cardinal-Utility Matching Markets: The Quest for Envy-Freeness, Pareto-Optimality, and Efficient Computability
topic Computer Science and Game Theory
url https://arxiv.org/abs/2402.08851