Monotone branch-and-bound search for restricted combinatorial auctions

John Lai, David Parkes
2012 Proceedings of the 13th ACM Conference on Electronic Commerce - EC '12  
Faced with an intractable optimization problem, a common approach to computational mechanism design seeks a polynomial time approximation algorithm with an approximation guarantee. Rather than adopt this worst-case viewpoint, we introduce a new paradigm that seeks to obtain good performance on typical instances through a modification to the branch-and-bound search paradigm. Incentive compatibility in single-dimensional domains requires that an outcome improves monotonically for an agent as the
more » ... or an agent as the agent's reported value increases. We obtain a monotone search algorithm by coupling an explicit sensitivity analysis on the decisions made during search with a correction to the outcome to ensure monotonicity. Extensive computational experiments on single-minded combinatorial auctions show better welfare performance than that available from existing approximation algorithms.
doi:10.1145/2229012.2229067 dblp:conf/sigecom/LaiP12 fatcat:qdp4mg3gtvfhxksozofn65fcvm