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Truthful ownership transfer with expect advice

Caragiannis, Ioannis and Filos-Ratsikas, Aris and Nath, Swaprava and Voudouris, Alexandros (2022) 'Truthful ownership transfer with expect advice.' Mathematical Programming. ISSN 0025-5610

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Abstract

When a company undergoes a merger or transfers its ownership, the existing governing body has an opinion on which buyer should take over as the new owner. Similar situations occur while assigning the host of big sports tournaments, like the World Cup or the Olympics. In all these settings, the values of the external bidders are as important as the opinions of the internal experts. Motivated by such scenarios, we consider a social welfare maximizing approach to design and analyze truthful mechanisms in hybrid social choice settings, where payments can be imposed to the bidders, but not to the experts. Since this problem is a combination of mechanism design with and without monetary transfers, classical solutions like VCG cannot be applied, making this a novel mechanism design problem. We consider the simple but fundamental scenario with one expert and two bidders, and provide tight approximation guarantees of the optimal social welfare. We distinguish between mechanisms that use ordinal and cardinal information, as well as between mechanisms that base their decisions on one of the two sides (either the bidders or the expert) or both. Our analysis shows that the cardinal setting is quite rich and admits several non-trivial randomized truthful mechanisms, and also allows for closer-to-optimal welfare guarantees.

Item Type: Article
Uncontrolled Keywords: Mechanism design; Social choice; Ownership transfer; Approximation
Divisions: Faculty of Science and Health
Faculty of Science and Health > Computer Science and Electronic Engineering, School of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 20 Jun 2022 20:43
Last Modified: 23 Sep 2022 19:54
URI: http://repository.essex.ac.uk/id/eprint/32900

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