Home Business & Finance A Unified Framework for Uniform-Price Resource...
Business & Finance

A Unified Framework for Uniform-Price Resource Allocation Mechanisms

Key Points

arXiv:2606.06151v1 Announce Type: new Abstract: Mechanisms for allocating a divisible resource among strategic agents have been widely studied. The prominent paradigm is the proportional (Kelly) mechanism, which elicits a scalar bid per agent, allocates the resource proportionally, and charges payments equal to the bids. Follow-up mechanisms improve social welfare, but sacrifice simplicity by introducing complex allocation rules or unintuitive payments.

arXiv:2606.06151v1 Announce Type: new Abstract: Mechanisms for allocating a divisible resource among strategic agents have been widely studied. The prominent paradigm is the proportional (Kelly) mechanism, which elicits a scalar bid per agent, allocates the resource proportionally, and charges payments equal to the bids. Follow-up mechanisms improve social welfare, but sacrifice simplicity by introducing complex allocation rules or unintuitive payments. We introduce a unified framework for designing simple resource allocation mechanisms with proportional-style allocations and uniform pricing. Our framework yields a family of mechanisms that interpolate between the Kelly mechanism and the first-price auction. These mechanisms strictly improve upon Kelly's efficiency guarantees, even achieving full efficiency in equilibrium, while also providing revenue guarantees relative to the VCG mechanism.
Kelly (PERSON) VCG (ORG)
Originally published by arXiv CS Read original →