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Project-Fair and Truthful Mechanisms for Budget Aggregation
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Introduces project fairness (l_inf distance to the mean) for truthful budget aggregation and proposes the Ladder moving phantom mechanism, which achieves essentially optimal overfunding/underfunding bounds and new l1 approximation guarantees for 3 to 6 projects.
Problem
Truthful budget aggregation where strategic voters split a divisible resource among projects; the mean is a fair baseline but not strategyproof, so the goal is a strategyproof mechanism whose output is close to the mean for every project.
Approach
Defines project fairness as the worst-case per-project deviation from the mean and proposes the Ladder mechanism, a simple moving phantom system f_k(t)=max(t-k/n,0) that moves phantoms upward uniformly, giving tight over- and underfunding bounds and an l1 approximation via a combinatorial proof.
Key results
- Ladder mechanism underfunds by at most 1/2 - 1/(2m) and overfunds by at most 1/4 (essentially tight for moving phantom mechanisms).
- Ladder mechanism is 2/3-approximate in l1 distance for m=3, matching the known lower bound and closing the gap left by the Piecewise Uniform mechanism's 2/3 + 10^-5 bound.
- First non-trivial l1 guarantees for m=4,5,6: 1, 3/2, and 5/3 respectively.
Measured effects reported in the paper
| What was changed | Where | Measured | Effect |
|---|---|---|---|
| Use the Ladder mechanism instead of the Piecewise Uniform mechanism | Budget aggregation with 3 projects · Budget aggregation, m=3 | worst-case ℓ1 distance to mean (upper bound): 2/3+ \epsilon -> 2/3 | Helped |
| Use the Ladder mechanism for 4 projects | Budget aggregation · Budget aggregation, m=4 | worst-case ℓ1 distance to mean (upper bound): 2 -> 1 | Helped |
| Use the Ladder mechanism for 5 projects | Budget aggregation · Budget aggregation, m=5 | worst-case ℓ1 distance to mean (upper bound): 2 -> 3/2 | Helped |
| Use the Ladder mechanism for 6 projects | Budget aggregation · Budget aggregation, m=6 | worst-case ℓ1 distance to mean (upper bound): 2 -> 5/3 | Helped |
Surprising findings
- Proportional moving phantom mechanisms can be shown to never overfund by more than 1/4, while underfunding by up to nearly 1/2 is unavoidable for moving phantom mechanisms.
Limitations
- Results are restricted to moving phantom mechanisms; whether non-moving-phantom strategyproof mechanisms can do better is open.
- Gap of O(1/n) between upper and lower overfunding bounds for odd n.
- The l1 approximation bounds are non-trivial only for m up to 6, since the approach gives bounds above the trivial 2 for larger m.
Experimental setup
Metrics: l_infinity distance to mean (project fairness: overfunding a l1 distance to mean (approximation factor)
Baselines: Piecewise Uniform mechanism Independent Markets mechanism utilitarian social welfare mechanism
Builds on: moving phantom mechanisms Piecewise Uniform mechanism Independent Markets mechanism generalized median mechanisms
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