Asymptotically optimal strategy-proof mechanisms for two-facility games

Abstract

We consider the problem of locating facilities in a metric space to serve a set of selfish agents. The cost of an agent is the distance between her own location and the nearest facility. The social cost is the total cost of the agents. We are interested in designing strategy-proof mechanisms without payment that have a small approximation ratio for social cost. A mechanism is a (possibly randomized) algorithm which maps the locations reported by the agents to the locations of the facilities. A mechanism is strategy-proof if no agent can benefit from misreporting her location in any configuration.