Supply Chain Coordination Mechanism Design: Consensus Planning Protocol Meets Vickrey-Clarke-Groves Mechanism

Fuente: arXiv
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Main Authors: Bergemann, Dirk, van Ryzin, Garrett, Li, Jiaxuan
Format: Preprint
Published: 2026
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author Bergemann, Dirk
van Ryzin, Garrett
Li, Jiaxuan
author_facet Bergemann, Dirk
van Ryzin, Garrett
Li, Jiaxuan
contents This paper introduces the theoretical framework for combining Vickrey-Clarke-Groves (VCG) mechanisms with the Consensus Planning Protocol (CPP) to enable truthful and efficient collaboration between a retailer and vendors to lower joint Cost to Serve. We demonstrate how this integration preserves both dominant-strategy incentive compatibility and efficiency in high-dimensional environments. We further introduce an activity fee design to improve its revenue property for the retailer while maintaining the mechanism's desirable properties. This CPP-VCG framework serves as the theoretical foundation for designing collaborative mechanisms to coordinates distributed, agent-based optimization between retailers and suppliers.
format Preprint
id arxiv_https___arxiv_org_abs_2605_16695
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Supply Chain Coordination Mechanism Design: Consensus Planning Protocol Meets Vickrey-Clarke-Groves Mechanism
Bergemann, Dirk
van Ryzin, Garrett
Li, Jiaxuan
Theoretical Economics
This paper introduces the theoretical framework for combining Vickrey-Clarke-Groves (VCG) mechanisms with the Consensus Planning Protocol (CPP) to enable truthful and efficient collaboration between a retailer and vendors to lower joint Cost to Serve. We demonstrate how this integration preserves both dominant-strategy incentive compatibility and efficiency in high-dimensional environments. We further introduce an activity fee design to improve its revenue property for the retailer while maintaining the mechanism's desirable properties. This CPP-VCG framework serves as the theoretical foundation for designing collaborative mechanisms to coordinates distributed, agent-based optimization between retailers and suppliers.
title Supply Chain Coordination Mechanism Design: Consensus Planning Protocol Meets Vickrey-Clarke-Groves Mechanism
topic Theoretical Economics
url https://arxiv.org/abs/2605.16695