arXiv AI

Falsification-proof non-market allocation mechanisms

The paper examines allocation mechanisms that rely on manipulable characteristics and shows that naive optimal rules lead to falsification and inefficiency. It characterizes optimal falsification‑proof rules across various falsification technologies and identifies an honesty condition under which these rules solve the planner’s unconstrained problem of maximizing a weighted sum of allocative surplus and agents’ welfare.

arXiv AI
Oct 23

Allocating Indivisible Goods to Strategic Agents: Pure Nash Equilibria and Fairness

The paper studies how to allocate indivisible goods to strategic agents with additive valuations without monetary transfers. It investigates whether mechanisms can guarantee pure Nash equilibria while ensuring fairness, focusing on envy‑freeness up to one good (EF1) and envy‑freeness up to any good (EFX). The authors show that the Round‑Robin algorithm yields EF1 allocations at every pure Nash equilibrium, and that a cut‑and‑choose algorithm for two agents produces EFX and maximin share fair allocations in equilibrium, a property absent in the non‑strategic setting.

By Georgios Amanatidis, Georgios Birmpas, Federico Fusco, Philip Lazos, Stefano Leonardi, Rebecca Reiffenh\"auser
arXiv AI
Sep 3

The Endogeneity of Miscalibration: Impossibility and Escape in Scored Reporting

The paper examines how an agent’s probability report is evaluated twice—once by a strictly proper scoring rule and again by an approval rule that determines a decision. It shows that when the approval rule is welfare‑maximizing, it cannot be affine, yet the resulting distortion is predictable and can be mitigated by a reserve report that neutralizes the cost of pretending to be the marginal type. A Lipschitz rule with a single kink achieves first‑best welfare, while smooth rules cannot, and the key constraint is the steepness of the rule rather than its smoothness.

By Lauri Lov\'en, Sasu Tarkoma
arXiv Machine Learning
Sep 7

Enhancing Affine Maximizer Auctions with Correlation-Aware Payment

The paper introduces Correlation-Aware Affine Maximizer Auctions (CA-AMA), a new framework that extends traditional AMAs by incorporating a correlation-aware payment structure. CA-AMA maintains dominant-strategy incentive compatibility and is formulated as a constraint optimization problem with individual rationality constraints. The authors theoretically demonstrate that CA-AMA can achieve optimal revenue in scenarios where classic AMAs perform poorly, and they present a practical two-stage training algorithm that empirically finds near-optimal CA-AMA solutions with improved revenue and minimal IR violations.

By Haoran Sun, Xuanzhi Xia, Xu Chu, Xiaotie Deng