arXiv AI By Edwin Lock, Nicholas Lopez, Francisco Marmolejo-Coss\'io, Jose Roberto Tello Ayala, David C. Parkes

Dynamic Welfare-Maximizing Pooled Testing

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The paper studies a budget‑constrained welfare problem for pooled testing, where agents have heterogeneous utilities and independent probabilities of being healthy. It proves that an optimal dynamic testing policy can achieve at most twice the welfare of the best static overlapping allocation, regardless of population, budget, or pool‑size limit. The authors also identify cases where adaptivity offers no benefit, show that re‑pooling after positive tests is necessary for strict gains, and provide approximation guarantees for greedy algorithms.

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