Truthful ownership transfer with expert advice
File(s)
Published version
Author(s)
Caragiannis, Ioannis
Filos-Ratsikas, Aris
Nath, Swaprava
Voudouris, Alexandros A
Type
Journal Article
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.
Date Issued
2024-01-01
Date Acceptance
2022-05-10
Citation
Mathematical Programming, 2024, 203 (1-2), pp.871-900
ISSN
0025-5610
Publisher
Springer Science and Business Media LLC
Start Page
871
End Page
900
Journal / Book Title
Mathematical Programming
Volume
203
Issue
1-2
Copyright Statement
© The Author(s) 2022 Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.
License URL
Publication Status
Published
Date Publish Online
2022-06-03