Mechanism Design with Spiteful Agents

Fuente: arXiv
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Main Authors: Aradhye, Aditya, Lagziel, David, Solan, Eilon
Format: Preprint
Published: 2025
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author Aradhye, Aditya
Lagziel, David
Solan, Eilon
author_facet Aradhye, Aditya
Lagziel, David
Solan, Eilon
contents We study a mechanism-design problem in which spiteful agents strive to not only maximize their rewards but also, contingent upon their own payoff levels, seek to lower the opponents' rewards. We characterize all individually rational (IR) and incentive-compatible (IC) mechanisms that are immune to such spiteful behavior, showing that they take the form of threshold mechanisms with an ordering of the agents. Building on this characterization, we prove two impossibility results: under either anonymity or efficiency, any such IR and IC mechanism collapses to the null mechanism, which never allocates the item to any agent. Leveraging these findings, we partially extend our analysis to a multi-item setup. These results illuminate the challenges of auctioning items in the natural presence of other-regarding preferences.
format Preprint
id arxiv_https___arxiv_org_abs_2512_01021
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Mechanism Design with Spiteful Agents
Aradhye, Aditya
Lagziel, David
Solan, Eilon
Computer Science and Game Theory
Optimization and Control
91A40
We study a mechanism-design problem in which spiteful agents strive to not only maximize their rewards but also, contingent upon their own payoff levels, seek to lower the opponents' rewards. We characterize all individually rational (IR) and incentive-compatible (IC) mechanisms that are immune to such spiteful behavior, showing that they take the form of threshold mechanisms with an ordering of the agents. Building on this characterization, we prove two impossibility results: under either anonymity or efficiency, any such IR and IC mechanism collapses to the null mechanism, which never allocates the item to any agent. Leveraging these findings, we partially extend our analysis to a multi-item setup. These results illuminate the challenges of auctioning items in the natural presence of other-regarding preferences.
title Mechanism Design with Spiteful Agents
topic Computer Science and Game Theory
Optimization and Control
91A40
url https://arxiv.org/abs/2512.01021