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Decentralized utilitarian mechanisms for scheduling games
Journal article   Open access   Peer reviewed

Decentralized utilitarian mechanisms for scheduling games

Richard Cole, Jose R. Correa, Vasilis Gkatzelis, Vahab Mirrokni and Neil Olver
Games and economic behavior, v 92, pp 306-326
01 Jul 2015
url
https://doi.org/10.1016/j.geb.2013.03.011View
Published, Version of Record (VoR) Open

Abstract

Business & Economics Economics Social Sciences
Game Theory and Mechanism Design are by now standard tools for studying and designing massive decentralized systems. Unfortunately, designing mechanisms that induce socially efficient outcomes often requires full information and prohibitively large computational resources. In this work we study simple mechanisms that require only local information. Specifically, in the setting of a classic scheduling problem, we demonstrate local mechanisms that induce outcomes with social cost close to that of the socially optimal solution. Somewhat counter-intuitively, we find that mechanisms yielding Pareto dominated outcomes may in fact enhance the overall performance of the system, and we provide a justification of these results by interpreting these inefficiencies as externalities being internalized. We also show how to employ randomization to obtain yet further improvements. Lastly, we use the game-theoretic insights gained to obtain a new combinatorial approximation algorithm for the underlying optimization problem. (C) 2013 Elsevier Inc. All rights reserved.

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Economics
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