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Mechanism Design for One-Facility Location Game with Obnoxious Effects

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Frontiers in Algorithmics (FAW 2016)

Part of the book series: Lecture Notes in Computer Science ((LNTCS,volume 9711))

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Abstract

In classic obnoxious facility games [5, 6, 12], each agent i has a private location \(x_i\) on a closed interval [0, 1] and one facility y is planned to build on the interval according to the bids of all the agents. In this paper we consider obnoxious effects among the game by introducing two thresholds \(d_1\) and \(d_2\) into utility functions, where \(0 \le d_1 \le d_2 \le 1\). Let \(d(y, x_i) = |y - x_i|\) be the distance between agent i and facility y. The utility function of agent i is 0 if \(d(y, x_i)\) is at most \(d_1\); 1 if \(d(y, x_i)\) is at least \(d_2\); otherwise a linear increasing function between 0 and 1. Each agent aims to get a largest possible utility while the social welfare is to maximize the sum of all the agents’ utilities.

The classic obnoxious facility game is a special case of our problem when \(d_1 =0\) and \(d_2=1\). We show that if \(d_1 = d_2\), a mechanism that outputs the leftmost optimal facility location is strategy-proof. If \(d_1 \ge \frac{1}{2}\), we show the problem cannot have any bounded deterministic strategy-proof mechanism. By further detailed analysis, if the thresholds \(d_1\), \(d_2\) are restricted to some ranges, we design strategy-proof mechanisms and provide the approximation ratios with respect to \(d_1\) and \(d_2\).

Research was partially supported by the Nature Science Foundation of Zhejiang Province (NO. LQ15A010001).

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Correspondence to Deshi Ye .

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Mei, L., Ye, D., Zhang, G. (2016). Mechanism Design for One-Facility Location Game with Obnoxious Effects. In: Zhu, D., Bereg, S. (eds) Frontiers in Algorithmics. FAW 2016. Lecture Notes in Computer Science(), vol 9711. Springer, Cham. https://doi.org/10.1007/978-3-319-39817-4_17

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  • DOI: https://doi.org/10.1007/978-3-319-39817-4_17

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  • Online ISBN: 978-3-319-39817-4

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