Bounding the payment of approximate truthful mechanisms
 

In a STACS 2003 paper, Talwar analyses the overpayment the VCG mechanism incurs for ensuring truthfulness in auction. Among other results, he studies k-Set Cover (given a universe U and a collection of sets S1, S2, ..., Sq, each having a cost c(S_i) and at most k elements of U, find a minimum cost subcollection, called cover, whose union equals U) and shows that the payment of the optimum cover OPT is at most k c(OPT'), where OPT' is the best cover disjoint from the optimum cover.

For k >= 3, k-Set Cover is known to be NP-Hard, and thus truthful mechanisms based on approximation algorithms are desirable. We show that the payment incurred by two approximation algorithms (including the Greedy algorithm) is bounded by (k-1) c(OPT) + k c(OPT'). The same approximation algorithms have payment bounded by k (c(OPT) + c(OPT') ) when applied to more general set systems, which include k -Polymatroid Cover, a problem with applications in Steiner Tree computations. If q is such that an element in a k-Set-Cover instance appears in at most q sets, we show that the payment of our algorithms is bounded by q k2 times the payment of the optimum algorithm.

No previous knowledge of mechanism design is assumed