Cloud Atelier

A Constant-Factor Approximation to Multidimensional Consumer Utility

Motivated by social services where consumers pay with non-transferable ordeals, we study mechanisms that maximize consumer utility for multiple unit-demand buyers and heterogeneous items whose values...

Motivated by social services where consumers pay with non-transferable ordeals, we study mechanisms that maximize consumer utility for multiple unit-demand buyers and heterogeneous items whose values are drawn independently from known prior distributions. Prior work in utility maximization approximates social welfare and shows that the gap between optimal utility and social welfare is logarithmic. We resolve the question of whether simple mechanisms can guarantee a constant-factor approximation to optimal utility itself. Our mechanisms achieve a $(5.67+\varepsilon)$-approximation for general independent values, improving to $2e/(e-1)

Source: arXiv