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11institutetext: School of Computing, National University of Singapore, Singapore 11email: [email protected] 22institutetext: Department of Computer Science, University of Oxford, UK
22email: [email protected]

On Maximum Weighted Nash Welfare for
Binary Valuations

Warut Suksompong 11    Nicholas Teh 22
Abstract

We consider the problem of fairly allocating indivisible goods to agents with weights representing their entitlements. A natural rule in this setting is the maximum weighted Nash welfare (MWNW) rule, which selects an allocation maximizing the weighted product of the agents’ utilities. We show that when agents have binary valuations, a specific version of MWNW is resource- and population-monotone, satisfies group-strategyproofness, and can be implemented in polynomial time.

Keywords:
fair division unequal entitlements Nash welfare

1 Introduction

A fundamental problem in economics is how to allocate scarce resources to interested agents in a fair manner, often referred to as fair division [10, 26]. Applications of fair division include distributing books among public libraries, allotting supplies to districts, and dividing personnel between organizations.

An approach to fairly allocating resources that has received significant attention is the maximum Nash welfare (MNW) rule, which chooses an allocation that maximizes the product of the agents’ utilities. MNW is scale-invariant—scaling the utility function of an agent by a constant factor does not change the outcome of the rule—and its output satisfies Pareto-optimality—no agent can be made better off without making another agent worse off. Moreover, in the ubiquitous setting where the resource consists of indivisible goods, Caragiannis et al. [12] showed that an MNW allocation is always envy-free up to one good (EF1), meaning that if an agent envies another agent based on their allocated bundles, then the envy can be eliminated by removing a single good from the latter agent’s bundle. This result holds when the agents have additive valuations over the goods, a common assumption in fair division, which we will also make in this paper. The combination of EF1 and Pareto-optimality is surprisingly elusive—for example, it is not always satisfied by an allocation that maximizes the utilitarian or egalitarian welfare [12]. This “unreasonable fairness” of MNW led Caragiannis et al. to call it the “ultimate solution” for the division of indivisible goods under additive valuations.

While most of the fair division literature assumes that the agents participating in the resource allocation exercise have the same entitlement to the resource, this assumption is far from the truth in many situations. Indeed, the agents may have made different levels of investment in a joint venture and therefore deserve different shares of the resulting assets. Alternatively, if the agents represent groups like districts or organizations, as in the aforementioned examples, larger groups are clearly entitled to a larger proportion of the resource. As a result, a recent line of work has investigated the problem of allocating indivisible goods to agents with different weights representing their entitlements [4, 5, 13, 14, 15, 18, 28]. A natural generalization of MNW to the weighted setting is the maximum weighted Nash welfare (MWNW) rule, which selects an allocation maximizing the weighted product of the agents’ utilities, where the weights appear in the exponents. MWNW is Pareto-optimal by definition, and Chakraborty et al. [13] showed that it satisfies a weighted extension of EF1 called weak weighted envy-freeness up to one good (WWEF1).

Despite their attractive properties, MNW and MWNW are not without disadvantages. First, MNW is not strategyproof [20, 23], which implies that an agent can sometimes benefit by misreporting her true preferences. Second, the rule violates two highly intuitive properties called resource- and population-monotonicity [14]: resource-monotonicity says that when an extra good is added, no agent should receive lower utility as a result, while population-monotonicity mandates that if an extra agent joins, no existing agent’s utility should increase. Third, finding or even approximating the maximum Nash welfare is a computationally hard problem [25]. Since MWNW is a generalization of MNW, all of these drawbacks also apply to MWNW. Recent work has therefore focused on the class of binary valuations (sometimes referred to as binary additive valuations), wherein the utilities are additive and each agent’s utility for each good is either 0 or 11. Under binary valuations, Halpern et al. [20] proved that a particular form of MNW, which they called MNWtie{}^{\text{tie}}, is group-strategyproof and can be computed in polynomial time. Group-strategyproofness stipulates that no group of agents can misreport their preferences in such a way that they all benefit.

As Halpern et al. [20] noted, the case of binary valuations is not merely a theoretical curiosity. While such valuations undoubtedly limit the expressiveness of preferences, they allow for very simple preference elicitation. Indeed, in our earlier examples, books can be classified as being relevant to a particular library or not, supplies are either in surplus or shortage for each district, and organizations can indicate their human resource needs in terms of the personnel that they desire. Binary valuations also correspond to approval votes, which have long been studied in the voting literature [9, 22]. For these reasons, the binary case has been given special attention in several fair division papers [2, 3, 7, 8, 17, 19, 20, 21, 24]. In addition, when different entitlements are allowed, binary valuations generalize the well-studied setting of apportionment, wherein the goods are all identical (e.g., seats in a parliament) [6, 27].

1.1 Our Contributions

In this paper, we show that MWNW (and therefore MNW) exhibits several desirable properties under binary valuations. In particular, we consider a specific form of the MWNW rule that we call MWNWtie{}^{\text{tie}}.

  • First, we show that MWNWtie{}^{\text{tie}} is resource- and population-monotone under binary valuations. Even in the unweighted setting, both results are new to the best of our knowledge. Since resource-monotonicity corresponds to an important axiom in apportionment called house-monotonicity,111See, e.g., [6, p. 117]. This axiom is also known as committee-monotonicity [11], and a violation of it is referred to as the Alabama paradox. this suggests that it may be interesting to consider MWNWtie{}^{\text{tie}} as an apportionment method.

  • Second, we show that MWNWtie{}^{\text{tie}} satisfies group-strategyproofness, which means that no group of agents can misreport their preferences in a way that all members of the group are better off. This generalizes the result of Halpern et al. [20] from the unweighted setting. We also consider a stronger notion of group-strategyproofness, whereby it is only required that in the manipulating group, none of the members is worse off and at least one is better off. We show that even when all agents have the same entitlement, MWNWtie{}^{\text{tie}} (which reduces to MNWtie{}^{\text{tie}}) fails to satisfy this stronger version.

  • Third, we present an algorithm that computes an MWNWtie{}^{\text{tie}} allocation in polynomial time. This extends the result of Halpern et al. [20] from the unweighted setting.

Together with the known fairness and efficiency guarantees under general additive valuations [13], our results establish MWNW as a strong candidate rule when allocating indivisible goods among agents with binary valuations and arbitrary entitlements. We also discuss the shortcomings of other candidate rules in this setting as a comparison to MWNW.

2 Preliminaries

In the setting of allocating indivisible goods, we are given a set N={1,,n}N=\{1,\dots,n\} of nn agents and a set G={g1,,gm}G=\{g_{1},\dots,g_{m}\} of mm goods. Both NN and GG are not necessarily fixed, as extra agents or goods may be added. Subsets of goods in GG are referred to as bundles. Each agent iNi\in N has a weight wi>0w_{i}>0 (representing her entitlement), and a nonnegative valuation function viv_{i} over bundles of goods. We assume that viv_{i} is binary (or binary additive), meaning that vi({g}){0,1}v_{i}(\{g\})\in\{0,1\} for all iNi\in N and gGg\in G, and vi(S)=gSvi({g})v_{i}(S)=\sum_{g\in S}v_{i}(\{g\}) for any SGS\subseteq G. For the sake of simplicity, we sometimes write vi(g)v_{i}(g) instead of vi({g})v_{i}(\{g\}) for gGg\in G. Let the vector of agent weights be 𝐰=(w1,,wn)\mathbf{w}=(w_{1},\dots,w_{n}), and the vector of agent valuations (which we call the valuation profile) be 𝐯=(v1,,vn)\mathbf{v}=(v_{1},\dots,v_{n}). A problem instance \mathcal{I} is defined by the set of agents, goods, weights, and valuation functions.

An allocation 𝒜=(A1,,An)\mathcal{A}=(A_{1},\dots,A_{n}) is a list of nn bundles such that no two bundles overlap, where agent ii receives bundle AiA_{i}; let Πn(G)\Pi_{n}(G) denote the set of all possible allocations. For an allocation 𝒜\mathcal{A}, let its utility vector be (v1(A1),,vn(An))(v_{1}(A_{1}),\dots,v_{n}(A_{n})) and its weighted utility vector be (v1(A1)w1,,vn(An)wn)(v_{1}(A_{1})^{w_{1}},\dots,v_{n}(A_{n})^{w_{n}}). For a subset of agents SNS\subseteq N, let 𝒜S\mathcal{A}_{S} denote the allocation derived from restricting 𝒜\mathcal{A} to the bundles of the agents in SS (in the same order as in 𝒜)\mathcal{A}). An allocation rule is a function that maps each instance to an allocation. We say that a good gg is unvalued if vi(g)=0v_{i}(g)=0 for all agents iNi\in N, and valued otherwise. An allocation 𝒜\mathcal{A} is said to be minimally complete if it allocates all valued goods and does not allocate any unvalued good.

We can now state the definition of the MWNW rule.

Definition 1 (MWNW)

An allocation 𝒜\mathcal{A} is a maximum weighted Nash welfare (MWNW) allocation if, among the set of allocations in Πn(G)\Pi_{n}(G), it maximizes the number of agents receiving positive utility and, subject to that, maximizes the weighted product of positive utilities. Formally, let P(𝒜)={iN:vi(Ai)>0}P(\mathcal{A})=\{i\in N:v_{i}(A_{i})>0\} and 𝒫=argmax𝒜Πn(G)|P(𝒜)|\mathcal{P}=\operatorname*{arg\,max}_{\mathcal{A}\in\Pi_{n}(G)}|P(\mathcal{A})|. Then, 𝒜\mathcal{A} is an MWNW allocation if 𝒜argmax𝒜𝒫iP(𝒜)vi(Ai)wi\mathcal{A}\in\operatorname*{arg\,max}_{\mathcal{A^{\prime}}\in\mathcal{P}}\prod_{i\in P(\mathcal{A^{\prime}})}v_{i}(A^{\prime}_{i})^{w_{i}}.

The MWNW rule selects an MWNW allocation from any instance, breaking ties arbitrarily if there is more than one such allocation.

When all weights are equal (sometimes referred to as the unweighted setting), the MWNW rule reduces to the well-known maximum Nash welfare (MNW) rule. Halpern et al. [20] introduced the rule MNWtie{}^{\text{tie}}, a version of MNW with additional tie-breaking specifications. We will extend MNWtie{}^{\text{tie}} to the weighted setting. An allocation 𝒜\mathcal{A} is said to be lexicographically dominating in a set of allocations 𝒞\mathcal{C} if it maximizes the weighted utility vector in a lexicographical order. More precisely, among all allocations in 𝒞\mathcal{C}, the allocation 𝒜\mathcal{A} maximizes v1(A1)w1v_{1}(A_{1})^{w_{1}}, then subject to that, it maximizes v2(A2)w2v_{2}(A_{2})^{w_{2}}, and so on. The main allocation rule that we consider in this paper is the following.

Definition 2 (MWNWtie{}^{\text{tie}})

The rule MWNWtie{}^{\text{tie}} returns an allocation 𝒜\mathcal{A} such that

  1. 1.

    𝒜\mathcal{A} is an MWNW allocation that is also lexicographically dominating in the set of all MWNW allocations; and

  2. 2.

    𝒜\mathcal{A} is minimally complete.

If there are several allocations satisfying both conditions, then MWNWtie{}^{\text{tie}} arbitrarily picks one of them. Note that even though there can be more than one MWNWtie{}^{\text{tie}} allocation, all such allocations have the same (weighted) utility vector. MWNWtie{}^{\text{tie}} reduces to MNWtie{}^{\text{tie}} when all weights are equal.

We now establish two properties of MWNWtie{}^{\text{tie}} that will be useful for proving our results.

Lemma 1

Under binary valuations, in any MWNWtie{}^{\text{tie}} allocation 𝒜\mathcal{A}, every agent values every good in her own bundle. That is, iN\forall i\in N, gAi\forall g\in A_{i}, vi(g)=1v_{i}(g)=1.

Proof

Suppose, for a contradiction, that there exists a good gAig\in A_{i} such that vi(g)=0v_{i}(g)=0. Since any MWNWtie{}^{\text{tie}} allocation 𝒜\mathcal{A} is minimally complete, some agent jNj\in N must have positive value for it: vj(g)=1v_{j}(g)=1. If the weighted Nash welfare of 𝒜\mathcal{A} is greater than 0, we can strictly improve the weighted Nash welfare by assigning gg to jj instead of ii. On the other hand, if the weighted Nash welfare of 𝒜\mathcal{A} is 0, we can increase the number of agents receiving positive utility or increase the product of positive utilities by assigning gg to jj. Both cases contradict the assumption that 𝒜\mathcal{A} is an MWNWtie{}^{\text{tie}} allocation. \square

Lemma 2

Under binary valuations, suppose we have an MWNWtie{}^{\text{tie}} allocation 𝒜=(A1,,An)\mathcal{A}=(A_{1},\dots,A_{n}). Then, for any subset of agents SNS\subseteq N, 𝒜S\mathcal{A}_{S} is also an MWNWtie{}^{\text{tie}} allocation for the agents in SS.

Proof

Suppose, for a contradiction, that 𝒜S\mathcal{A}_{S} is not an MWNWtie{}^{\text{tie}} allocation. This means that there exists another allocation 𝒜S\mathcal{A}_{S}^{\prime} of the goods in 𝒜S\mathcal{A}_{S} to the agents in SS such that

  1. (i)

    strictly more agents receive positive utility, or

  2. (ii)

    the same number of agents receive positive utility, but the weighted Nash welfare of these agents is strictly higher, or

  3. (iii)

    the same number of agents receive positive utility, with the same weighted Nash welfare for these agents, but the weighted utility vector of 𝒜S\mathcal{A}_{S}^{\prime} is lexicographically preferred to that of 𝒜S\mathcal{A}_{S}.

Case (i) means that the number of agents receiving positive utility in 𝒜\mathcal{A} is not maximized, a contradiction. In case (ii), if we retain the allocation for agents in NSN\setminus S as in 𝒜\mathcal{A} while using the allocation 𝒜S\mathcal{A}_{S}^{\prime} for agents in SS, then in the new allocation, the same number of agents receive positive utility as in 𝒜\mathcal{A}, but the weighted Nash welfare of these agents is strictly higher, a contradiction. Finally, in case (iii), this means that 𝒜\mathcal{A} is not lexicographically dominating, yielding yet another contradiction. \square

To end this section, we introduce the notion of a transformation graph. Consider two allocations 𝒜\mathcal{A} and 𝒜\mathcal{A}^{\prime}, where the set of goods allocated may be different (but the set of agents is the same). Let the transformation graph 𝒢(𝒜,𝒜)\mathcal{G}(\mathcal{A},\mathcal{A^{\prime}}) from 𝒜\mathcal{A} to 𝒜\mathcal{A^{\prime}} be a directed graph where the nodes represent the agents, and for each good gg such that gAig\in A_{i} and gAjg\in A_{j}^{\prime} for some iji\neq j, we add an edge iji\rightarrow j. In particular, there may be multiple edges from one node ii to another node jj.

3 Monotonicity

In this section, we show that MWNWtie{}^{\text{tie}} satisfies resource- and population-monotonicity. As a by-product of our proof for resource-monotonicity, we will also obtain a polynomial-time algorithm that computes an MWNWtie{}^{\text{tie}} allocation. We first state the definitions of the two monotonicity properties—both of them have been studied in recent fair division papers [14, 29, 30].

Definition 3 (Resource-monotonicity)

An allocation rule ff is resource-monotone if the following holds: For any two instances \mathcal{I} and \mathcal{I^{\prime}} such that \mathcal{I^{\prime}} can be obtained from \mathcal{I} by adding one extra good, if f()=𝒜f(\mathcal{I})=\mathcal{A} and f()=𝒜f(\mathcal{I^{\prime}})=\mathcal{A^{\prime}}, then for each iNi\in N, vi(Ai)vi(Ai)v_{i}(A_{i})\leq v_{i}(A^{\prime}_{i}).

Definition 4 (Population-monotonicity)

An allocation rule ff is population-monotone if the following holds: For any two instances \mathcal{I} and \mathcal{I^{\prime}} such that \mathcal{I^{\prime}} can be obtained from \mathcal{I} by adding one extra agent, if f()=𝒜f(\mathcal{I})=\mathcal{A} and f()=𝒜f(\mathcal{I^{\prime}})=\mathcal{A^{\prime}}, then for each agent ii in the original set of agents NN, vi(Ai)vi(Ai)v_{i}(A_{i})\geq v_{i}(A^{\prime}_{i}).

We now proceed to our first main result.

Theorem 3.1

Under binary valuations, the MWNWtie{}^{\text{tie}} rule is resource-monotone.

Proof

Let \mathcal{I} and \mathcal{I^{\prime}} be instances such that \mathcal{I^{\prime}} can be obtained from \mathcal{I} by adding one extra good gg^{*}. Suppose that MWNWtie{}^{\text{tie}} returns 𝒜\mathcal{A} on \mathcal{I} and 𝒜\mathcal{A^{\prime}} on \mathcal{I^{\prime}}.222Recall that for each instance, all MWNWtie{}^{\text{tie}} allocations induce the same (weighted) utility vector. By Lemma 1, in both 𝒜\mathcal{A} and 𝒜\mathcal{A^{\prime}}, every agent values every good that she receives. Let 𝒜′′\mathcal{A^{\prime\prime}} be the allocation that is equivalent to 𝒜\mathcal{A^{\prime}} except that gg^{*} is excluded.

Suppose, for a contradiction, that |Ai|>|Ai||A_{i}|>|A^{\prime}_{i}| for some agent iNi\in N. Construct the transformation graph T=𝒢(𝒜,𝒜′′)T=\mathcal{G}(\mathcal{A},\mathcal{A^{\prime\prime}}). If TT contains at least one cycle, pick one of them arbitrarily and remove it—we remove the edges of the cycle from the graph without changing the allocations, so the resulting graph may no longer be the transformation graph of the same allocations. Repeat this process until TT becomes acyclic. Note that this procedure does not change the difference between the indegree and the outdegree of any node.

Since |Ai|>|Ai||Ai′′||A_{i}|>|A_{i}^{\prime}|\geq|A_{i}^{\prime\prime}|, there must be at least one outgoing edge from ii. As the graph is finite and has no cycle, by starting from ii and following an outgoing edge, we must eventually reach a node jj with no outgoing edge. In particular, it holds that |Aj|<|Aj′′||A_{j}|<|A^{\prime\prime}_{j}|. From 𝒜\mathcal{A}, we can transfer goods along the path from ii to jj; denote the allocation after this sequence of transfers by 𝒜^\widehat{\mathcal{A}}. Since 𝒜\mathcal{A} is an MWNWtie{}^{\text{tie}} allocation, it is preferred to 𝒜^\widehat{\mathcal{A}} by the MWNWtie{}^{\text{tie}} rule. Note that |A^i|=|Ai|1|\widehat{A}_{i}|=|A_{i}|-1, |A^j|=|Aj|+1|\widehat{A}_{j}|=|A_{j}|+1, and |A^k|=|Ak||\widehat{A}_{k}|=|A_{k}| for all kN{i,j}k\in N\setminus~{}\{i,j\}. Consequently, the weighted utility vector (|Ai|wi,|Aj|wj)(|A_{i}|^{w_{i}},|A_{j}|^{w_{j}}) is preferred to the weighted utility vector ((|Ai|1)wi,(|Aj|+1)wj)((|A_{i}|-1)^{w_{i}},(|A_{j}|+1)^{w_{j}}) by the MWNWtie{}^{\text{tie}} rule.333Even though we write agent ii’s weighted utility before agent jj’s in the weighted utility vectors, the actual order would be reversed if j<ij<i.

Similarly, from 𝒜′′\mathcal{A^{\prime\prime}}, we can transfer goods along the path from jj to ii in the “reverse” graph 𝒢(𝒜′′,𝒜)\mathcal{G}(\mathcal{A^{\prime\prime}},\mathcal{A}). Since the allocation 𝒜′′\mathcal{A^{\prime\prime}} is simply the allocation 𝒜\mathcal{A^{\prime}} without the good gg^{*}, the same sequence of transfers is also feasible in 𝒜\mathcal{A^{\prime}}. Let the allocation after this sequence of transfers be 𝒜^\widehat{\mathcal{A}}^{\prime}. Since 𝒜\mathcal{A^{\prime}} is an MWNWtie{}^{\text{tie}} allocation, it is preferred to 𝒜^\widehat{\mathcal{A}}^{\prime} by the MWNWtie{}^{\text{tie}} rule. Note that |A^i|=|Ai|+1|\widehat{A}^{\prime}_{i}|=|A^{\prime}_{i}|+1, |A^j|=|Aj|1|\widehat{A}^{\prime}_{j}|=|A^{\prime}_{j}|-1, and |A^k|=|Ak||\widehat{A}^{\prime}_{k}|=|A^{\prime}_{k}| for all kN{i,j}k\in N\setminus\{i,j\}. Hence, the weighted utility vector (|Ai|wi,|Aj|wj)(|A^{\prime}_{i}|^{w_{i}},|A^{\prime}_{j}|^{w_{j}}) is preferred to the weighted utility vector ((|Ai|+1)wi,(|Aj|1)wj)((|A^{\prime}_{i}|+1)^{w_{i}},(|A^{\prime}_{j}|-~{}1)^{w_{j}}) by the MWNWtie{}^{\text{tie}} rule.

Now, recall that we have

|Ai|>|Ai||Ai′′| and |Aj||Aj′′|>|Aj|.|A_{i}|>|A^{\prime}_{i}|\geq|A^{\prime\prime}_{i}|\quad\text{ and }\quad|A^{\prime}_{j}|\geq|A^{\prime\prime}_{j}|>|A_{j}|.

Since bundle sizes are integers, we get

|Ai|1|Ai||Ai′′| and |Aj||Aj′′||Aj|+1.|A_{i}|-1\geq|A^{\prime}_{i}|\geq|A_{i}^{\prime\prime}|\quad\text{ and }\quad|A^{\prime}_{j}|\geq|A^{\prime\prime}_{j}|\geq|A_{j}|+1. (1)

In particular, |Ai|1|A_{i}|\geq 1 and |Aj||Aj′′|1|A^{\prime}_{j}|\geq|A^{\prime\prime}_{j}|\geq 1. We consider the following two cases based on whether AjA_{j} is empty.

Case 1: |Aj|=0|A_{j}|=0.

If |Ai|>1|A_{i}|>1, then the allocation 𝒜^\widehat{\mathcal{A}}, with weighted utility vector ((|Ai|1)wi,(|Aj|+1)wj)((|A_{i}|-1)^{w_{i}},(|A_{j}|+1)^{w_{j}}) for agents ii and jj, has strictly more agents receiving positive utility, thereby contradicting the fact that 𝒜\mathcal{A} is an MWNWtie{}^{\text{tie}} allocation. Thus, |Ai|=1|A_{i}|=1, which by (1) means that |Ai|=0|A_{i}^{\prime}|=0. In particular, gAig^{*}\not\in A_{i}^{\prime}. Since (|Ai|wi,|Aj|wj)(|A_{i}|^{w_{i}},|A_{j}|^{w_{j}}) is preferred to ((|Ai|1)wi,(|Aj|+1)wj)((|A_{i}|-1)^{w_{i}},(|A_{j}|+1)^{w_{j}}), it must be that i<ji<j.

We know from (1) that |Aj|1|A_{j}^{\prime}|\geq 1. If |Aj|>1|A^{\prime}_{j}|>1, then the allocation 𝒜^\widehat{\mathcal{A}}^{\prime}, with weighted utility vector ((|Ai|+1)wi,(|Aj|1)wj)((|A^{\prime}_{i}|+1)^{w_{i}},(|A^{\prime}_{j}|-1)^{w_{j}}) for agents ii and jj, has strictly more agents receiving positive utility, thereby contradicting the fact that 𝒜\mathcal{A}^{\prime} is an MWNWtie{}^{\text{tie}} allocation. Thus, |Aj|=1|A^{\prime}_{j}|=1. However, since the weighted utility vector (|Ai|wi,|Aj|wj)(|A^{\prime}_{i}|^{w_{i}},|A^{\prime}_{j}|^{w_{j}}) is preferred to ((|Ai|+1)wi,(|Aj|1)wj)((|A^{\prime}_{i}|+1)^{w_{i}},(|A^{\prime}_{j}|-~{}1)^{w_{j}}), we must have j<ij<i, a contradiction with the previous paragraph.

Case 2: |Aj|>0|A_{j}|>0.

Then, by (1), we have |Aj||Aj′′|>1|A^{\prime}_{j}|\geq|A^{\prime\prime}_{j}|>1. Since (|Ai|wi,|Aj|wj)(|A_{i}|^{w_{i}},|A_{j}|^{w_{j}}) is preferred to ((|Ai|1)wi,(|Aj|+1)wj)((|A_{i}|-1)^{w_{i}},(|A_{j}|+1)^{w_{j}}), we have

(|Ai|1)wi(|Aj|+1)wj|Ai|wi|Aj|wj1,\frac{(|A_{i}|-1)^{w_{i}}(|A_{j}|+1)^{w_{j}}}{|A_{i}|^{w_{i}}|A_{j}|^{w_{j}}}\leq 1, (2)

where the denominator is nonzero as |Ai|1|A_{i}|\geq 1 and |Aj|>0|A_{j}|>0. From (1), we have |Ai||Ai|+1|A_{i}|\geq|A_{i}^{\prime}|+1 and |Aj|1|Aj||A^{\prime}_{j}|-1\geq|A_{j}|, which give us

1|Ai|+11|Ai| and 1|Aj|11|Aj|.-\frac{1}{|A^{\prime}_{i}|+1}\leq-\frac{1}{|A_{i}|}\quad\text{ and }\quad\frac{1}{|A^{\prime}_{j}|-1}\leq\frac{1}{|A_{j}|}. (3)

All the denominators in the above inequalities are nonzero as |Ai|1|A_{i}|\geq 1, |Aj|>0|A_{j}|>0, and |Aj|>1|A^{\prime}_{j}|>1. Also, since (|Ai|wi,|Aj|wj)(|A^{\prime}_{i}|^{w_{i}},|A^{\prime}_{j}|^{w_{j}}) is preferred to ((|Ai|+1)wi,(|Aj|1)wj)((|A^{\prime}_{i}|+~{}1)^{w_{i}},(|A^{\prime}_{j}|-1)^{w_{j}}), we get

|Ai|wi|Aj|wj(|Ai|+1)wi(|Aj|1)wj1,\frac{|A^{\prime}_{i}|^{w_{i}}|A^{\prime}_{j}|^{w_{j}}}{(|A^{\prime}_{i}|+1)^{w_{i}}(|A^{\prime}_{j}|-1)^{w_{j}}}\geq 1, (4)

where the denominator is nonzero as |Aj|>1|A^{\prime}_{j}|>1. Now,

|Ai|wi|Aj|wj(|Ai|+1)wi(|Aj|1)wj\displaystyle\frac{|A^{\prime}_{i}|^{w_{i}}|A^{\prime}_{j}|^{w_{j}}}{(|A^{\prime}_{i}|+1)^{w_{i}}(|A^{\prime}_{j}|-1)^{w_{j}}} =(11|Ai|+1)wi(1+1|Aj|1)wj\displaystyle=\left(1-\frac{1}{|A^{\prime}_{i}|+1}\right)^{w_{i}}\left(1+\frac{1}{|A^{\prime}_{j}|-1}\right)^{w_{j}}
(11|Ai|)wi(1+1|Aj|)wj\displaystyle\leq\left(1-\frac{1}{|A_{i}|}\right)^{w_{i}}\left(1+\frac{1}{|A_{j}|}\right)^{w_{j}}
=(|Ai|1)wi(|Aj|+1)wj|Ai|wi|Aj|wj\displaystyle=\frac{(|A_{i}|-1)^{w_{i}}(|A_{j}|+1)^{w_{j}}}{|A_{i}|^{w_{i}}|A_{j}|^{w_{j}}} (5)
1,\displaystyle\leq 1,

where the second line is derived using (3) and last line is as a result of (2). Since MWNWtie{}^{\text{tie}} chooses a lexicographically dominating allocation among all MWNW allocations, (2) can be an equality only if i<ji<j, and (4) can be an equality only if j<ij<i. Combining (2), (4), and (Case 2: |Aj|>0|A_{j}|>0.) yields

1|Ai|wi|Aj|wj(|Ai|+1)wi(|Aj|1)wj(|Ai|1)wi(|Aj|+1)wj|Ai|wi|Aj|wj1,1\leq\frac{|A^{\prime}_{i}|^{w_{i}}|A^{\prime}_{j}|^{w_{j}}}{(|A^{\prime}_{i}|+1)^{w_{i}}(|A^{\prime}_{j}|-1)^{w_{j}}}\leq\frac{(|A_{i}|-1)^{w_{i}}(|A_{j}|+1)^{w_{j}}}{|A_{i}|^{w_{i}}|A_{j}|^{w_{j}}}\leq 1,

where either the leftmost or the rightmost inequality has to be strict, thereby giving us a contradiction.

In both cases, we have arrived at a contradiction, completing the proof. \square

The resource-monotonicity of MWNWtie{}^{\text{tie}} for binary valuations reveals an important structural property of MWNWtie{}^{\text{tie}} allocations: when a new valued good is added, exactly one agent’s bundle will increase in size (although existing goods may get reallocated).

Corollary 1

Let \mathcal{I} and \mathcal{I^{\prime}} be instances such that \mathcal{I^{\prime}} can be obtained from \mathcal{I} by adding one valued good, and suppose that 𝒜\mathcal{A} and 𝒜\mathcal{A^{\prime}} are their respective MWNWtie{}^{\text{tie}} allocations. Then, for exactly one agent iNi\in N, vi(Ai)=vi(Ai)+1v_{i}(A_{i}^{\prime})=v_{i}(A_{i})+1, and for all other agents jij\neq i, vj(Aj)=vj(Aj)v_{j}(A_{j}^{\prime})=v_{j}(A_{j}).

Algorithm 1 MWNWtie{}^{\text{tie}} algorithm

Input: Set of agents N={1,,n}N=\{1,\dots,n\}, set of goods G={g1,,gm}G=\{g_{1},\dots,g_{m}\}, weight vector 𝐰=(w1,,wn)\mathbf{w}=(w_{1},\dots,w_{n}), and valuation vector 𝐯=(v1,,vn)\mathbf{v}=(v_{1},\dots,v_{n})
Output: MWNWtie{}^{\text{tie}} allocation of the mm goods in GG

1:  Initialize the empty allocation 𝒜0\mathcal{A}^{0} where Ai0=A_{i}^{0}=\emptyset for all iNi\in N.
2:  for t=1,2,,mt=1,2,\dots,m do
3:     𝒜tAddOneGood(𝒜t1,gt)\mathcal{A}^{t}\leftarrow\texttt{AddOneGood}(\mathcal{A}^{t-1},g_{t}) (see Algorithm 2)
4:  end for
5:  return 𝒜m\mathcal{A}^{m}
Algorithm 2 AddOneGood

Input: MWNWtie{}^{\text{tie}} allocation 𝒜t1\mathcal{A}^{t-1} (t1t-1 goods in total), and good gg
Output: MWNWtie{}^{\text{tie}} allocation 𝒜t\mathcal{A}^{t} (tt goods in total)

1:  if gg is unvalued then
2:     return the allocation 𝒜t1\mathcal{A}^{t-1} with gg not assigned to any agent
3:  end if
4:  Create a directed graph \mathcal{H} where the nodes correspond to the nn agents and an edge xyx\rightarrow y exists whenever agent yy values at least one good in agent xx’s bundle in 𝒜t1\mathcal{A}^{t-1}.
5:  𝒫\mathcal{P}\leftarrow\emptyset
6:  Create a dummy agent represented by node dd, and bundle Adt1={g}A^{t-1}_{d}=\{g\}. For each agent iNi\in N, add an edge did\rightarrow i if ii values gg.
7:  for each agent i=1,,ni=1,\dots,n do
8:     if a path Pd,iP_{d,i} from dd to ii exists then
9:        Add (i,Pd,i,𝐮d,i)(i,P_{d,i},\mathbf{u}_{d,i}) to 𝒫\mathcal{P}, where 𝐮d,i\mathbf{u}_{d,i} is the weighted utility vector of the allocation 𝒜t1\mathcal{A}^{t-1} if we were to add one good valued by ii to ii’s bundle.
10:     end if
11:  end for
12:  Select the tuple in 𝒫\mathcal{P} with the maximum weighted Nash welfare across all tuples (computed using 𝐮d,i\mathbf{u}_{d,i}), breaking ties according to Definition 2. Let the corresponding path be da1a2id\rightarrow a_{1}\rightarrow a_{2}\rightarrow\dots\rightarrow i. Allocate gg to a1a_{1}, some good in Aa1t1A_{a_{1}}^{t-1} that a2a_{2} values to a2a_{2}, some good in Aa2t1A_{a_{2}}^{t-1} that a3a_{3} values to a3a_{3}, and so on. Let this new allocation be 𝒜t\mathcal{A}^{t}.
13:  return 𝒜t\mathcal{A}^{t}

We leverage this property to devise an algorithm that computes an MWNWtie{}^{\text{tie}} allocation in polynomial time (Algorithm 1). By abstracting out the subroutine AddOneGood (Algorithm 2), the main algorithm starts with a trivial MWNWtie{}^{\text{tie}} allocation (with no good being allocated), and iteratively allocates one good at a time using AddOneGood. At the end of each call to AddOneGood, the partial allocation will be MWNWtie{}^{\text{tie}} with respect to the allocated goods. The correctness of the algorithm is shown in the following theorem.

Theorem 3.2

Under binary valuations, Algorithm 1 computes an MWNWtie{}^{\text{tie}} allocation in polynomial time.

Proof

To prove that the allocation returned by Algorithm 1 is an MWNWtie{}^{\text{tie}} allocation, we show that after every iteration, the allocation returned by the subroutine AddOneGood is MWNWtie{}^{\text{tie}} with respect to the goods that are already allocated.

Let t{1,,m}t\in\{1,\dots,m\} be some iteration of the for loop of Algorithm 1, and let gg be the good added during this iteration. If gg is unvalued, clearly the allocation 𝒜t1\mathcal{A}^{t-1} with gg not assigned to any agent is MWNWtie{}^{\text{tie}} with respect to the first tt goods. Assume therefore that gg is valued. Hence, in the graph \mathcal{H}, there is an edge did\rightarrow i for some iNi\in N. This means that at least one tuple is added to 𝒫\mathcal{P}, and this iteration terminates with an allocation 𝒜t\mathcal{A}^{t}.

Let 𝒜^t\widehat{\mathcal{A}}^{t} be an MWNWtie{}^{\text{tie}} allocation of the tt goods. By Corollary 1, exactly one agent zz has vz(A^zt)=vz(Azt1)+1v_{z}(\widehat{A}^{t}_{z})=v_{z}(A_{z}^{t-1})+1, while all other agents yzy\neq z have vy(A^yt)=vy(Ayt1)v_{y}(\widehat{A}^{t}_{y})=v_{y}(A_{y}^{t-1}). Let 𝒜^t1\widehat{\mathcal{A}}^{t-1} be the allocation obtained by adding a dummy agent dd and the good gg to 𝒜t1\mathcal{A}^{t-1}, so that A^dt1={g}\widehat{A}_{d}^{t-1}=\{g\}. Consider the transformation graph 𝒢(𝒜^t1,𝒜^t)\mathcal{G}(\widehat{\mathcal{A}}^{t-1},\widehat{\mathcal{A}}^{t}), where we assume that A^dt=\widehat{A}_{d}^{t}=\emptyset. As in the proof of Theorem 3.1, we can eliminate all cycles from this graph. Node dd has one outgoing edge and no incoming edge, while every other node except zz has the same number of outgoing and incoming edges (in particular, if such a node has an incoming edge, it must also have an outgoing edge). Since the graph is finite and has no cycle, by starting from dd and iteratively following an outgoing edge, we must eventually reach zz. In other words, there is a path from dd to zz in 𝒢(𝒜^t1,𝒜^t)\mathcal{G}(\widehat{\mathcal{A}}^{t-1},\widehat{\mathcal{A}}^{t}). Let this path be db1b2zd\rightarrow b_{1}\rightarrow b_{2}\rightarrow\dots\rightarrow z.

By construction of the path, agent b1b_{1} values some good in agent dd’s bundle, agent b2b_{2} values some good in agent b1b_{1}’s bundle, and so on. This means that the path db1b2zd\rightarrow b_{1}\rightarrow b_{2}\rightarrow\dots\rightarrow z also exists in the graph \mathcal{H} in Algorithm 2. Hence, a tuple (z,Pd,z,𝐮d,z)(z,P_{d,z},\mathbf{u}_{d,z}) is added to 𝒫\mathcal{P}, where Pd,zP_{d,z} is a path from dd to zz (which may be different from the aforementioned path). Since the weighted utility vector 𝐮d,z\mathbf{u}_{d,z} is the same as the weighted utility vector of 𝒜^t\widehat{\mathcal{A}}^{t}, and by the selection method in line 12 of Algorithm 2, the allocation 𝒜t\mathcal{A}^{t} returned by AddOneGood is also an MWNWtie{}^{\text{tie}} allocation. This completes the proof of correctness.

Finally, we analyze the time complexity of Algorithm 1. In the main algorithm, there are 𝒪(m)\mathcal{O}(m) iterations of the for loop. In the AddOneGood subroutine, checking whether gg is unvalued takes 𝒪(n)\mathcal{O}(n) time, constructing the graph \mathcal{H} takes 𝒪(mn)\mathcal{O}(mn) time, and there are 𝒪(n)\mathcal{O}(n) iterations of the for loop. Within each iteration, finding if a path exists can be done using breadth-first search or depth-first search, which takes 𝒪(n2)\mathcal{O}(n^{2}) time [16]. In the last step, selecting the tuple in 𝒫\mathcal{P} takes 𝒪(n)\mathcal{O}(n) time and allocating along the path also takes 𝒪(n)\mathcal{O}(n) time. Putting everything together, Algorithm 1 terminates in 𝒪(mn(m+n2))\mathcal{O}(mn(m+n^{2})) time. \square

Next, with the help of the subroutine AddOneGood, we establish the population-monotonicity of MWNWtie{}^{\text{tie}}.

Theorem 3.3

Under binary valuations, the MWNWtie{}^{\text{tie}} rule is population-monotone.

Proof

Consider an MWNWtie{}^{\text{tie}} allocation 𝒜\mathcal{A} for n+1n+1 agents. Let SS be any subset of nn agents, and let ii be the agent not in SS. By Lemma 2, 𝒜S\mathcal{A}_{S} is an MWNWtie{}^{\text{tie}} allocation for the agents in SS. Then, with the bundle of goods remaining to be allocated being that of agent ii, iteratively make use of the subroutine AddOneGood to allocate all of these goods, giving us an MWNWtie{}^{\text{tie}} allocation of the original set of goods. Since AddOneGood never decreases the size of any agent’s bundle, which is equal to the agent’s utility by Lemma 1, population-monotonicity is satisfied. \square

4 Group-strategyproofness

A central concept in mechanism design is the notion of strategyproofness (SP), which is a compelling guarantee to prevent strategic manipulation by agents. Strategyproof rules ensure that an agent cannot find himself better off should he lie about his valuation function. A more robust version of SP is known as group-strategyproofness (GSP), wherein no group of agents can misreport their preferences so as to obtain a strictly higher utility for all agents in that group.

Definition 5 (Group-strategyproofness)

An allocation rule ff satisfies group-strategyproofness (GSP) if there do not exist valuation profiles 𝐯\mathbf{v} and 𝐯\mathbf{v^{\prime}} and a nonempty group of agents SNS\subseteq N such that

  • vi(Ai)>vi(Ai) for all iSv_{i}(A^{\prime}_{i})>v_{i}(A_{i})\text{ for all }i\in S, and

  • vj=vjv_{j}=v^{\prime}_{j} for all jNSj\in N\setminus S,

where 𝒜=f(𝐯)\mathcal{A}=f(\mathbf{v}) and 𝒜=f(𝐯)\mathcal{A^{\prime}}=f(\mathbf{v^{\prime}}).

Note that GSP reduces to SP if we only consider singleton groups. Halpern et al. [20] showed that in the unweighted setting, MNWtie{}^{\text{tie}} satisfies GSP. We strengthen their result by extending it to the weighted setting.

Theorem 4.1

Under binary valuations, the MWNWtie{}^{\text{tie}} rule is group-strategyproof.

Proof

Let 𝒜truth\mathcal{A}^{\texttt{truth}} be an MWNWtie{}^{\text{tie}} allocation under a truthful valuation profile 𝐯\mathbf{v}, with the unallocated (and truthfully unvalued) goods put into AunvaluedtruthA^{\texttt{truth}}_{\text{unvalued}}.

Similarly, let 𝒜lie\mathcal{A}^{\texttt{lie}} be an MWNWtie{}^{\text{tie}} allocation under the same truthful valuations for all agents except possibly those in SNS\subseteq N—call this valuation profile 𝐯\mathbf{v}^{\prime}—with the unallocated goods put into AunvaluedlieA^{\texttt{lie}}_{\text{unvalued}}. Note that AunvaluedlieA^{\texttt{lie}}_{\text{unvalued}} contains goods that agents in NSN\setminus S truthfully do not value, and that agents in SS declare they do not value (even though some of them may actually value some goods here).

Suppose, for a contradiction, that there exist such valuation profiles 𝐯\mathbf{v} and 𝐯\mathbf{v^{\prime}} and a set of agents SNS\subseteq N such that

  1. (i)

    vi(Ailie)>vi(Aitruth) for all iSv_{i}(A_{i}^{\texttt{lie}})>v_{i}(A_{i}^{\texttt{truth}})\text{ for all }i\in S,

  2. (ii)

    vj=vjv_{j}=v^{\prime}_{j} for all jNSj\in N\setminus S.

Under truthful valuations, Lemma 1 tells us that every agent values every good in his own bundle. However, because agents in SS may not be truthful, they may receive goods they do not actually value. For every iSi\in S, we can write

Ailie=Ailie,valuedAilie,unvalued,A_{i}^{\texttt{lie}}=A_{i}^{\texttt{lie,valued}}\cup A_{i}^{\texttt{lie,unvalued}},

where Ailie,valuedA_{i}^{\texttt{lie,valued}} consists of the goods in AilieA_{i}^{\texttt{lie}} that ii values, and Ailie,unvaluedA_{i}^{\texttt{lie,unvalued}} consists of the goods in AilieA_{i}^{\texttt{lie}} that ii does not value (but declares as valued in 𝐯\mathbf{v}^{\prime}). So we have that

vi(Ailie)=vi(Ailie,valued).v_{i}(A_{i}^{\texttt{lie}})=v_{i}(A_{i}^{\texttt{lie,valued}}).

Combining this with condition (i), we get that, for all iSi\in S,

|Ailie,valued|=vi(Ailie,valued)=vi(Ailie)>vi(Aitruth)=|Aitruth|,|A_{i}^{\texttt{lie,valued}}|=v_{i}(A_{i}^{\texttt{lie,valued}})=v_{i}(A_{i}^{\texttt{lie}})>v_{i}(A_{i}^{\texttt{truth}})=|A_{i}^{\texttt{truth}}|, (6)

where the last equality follows from Lemma 1. Let 𝒜*lie\mathcal{A}^{\texttt{*lie}} be the allocation that results from excluding the set of goods iSAilie,unvalued\bigcup_{i\in S}A_{i}^{\texttt{lie,unvalued}} from 𝒜lie\mathcal{A}^{\texttt{lie}}. Also, let Aunvalued*lie=AunvaluedlieA_{\text{unvalued}}^{\texttt{*lie}}=A_{\text{unvalued}}^{\texttt{lie}}.

Construct the graph T=𝒢(𝒜truth{Aunvaluedtruth},𝒜*lie{Aunvalued*lie})T=\mathcal{G}(\mathcal{A}^{\texttt{truth}}\cup\{A_{\text{unvalued}}^{\texttt{truth}}\},\mathcal{A}^{\texttt{*lie}}\cup\{A_{\text{unvalued}}^{\texttt{*lie}}\}), where we use the notation 𝒜truth{Aunvaluedtruth}\mathcal{A}^{\texttt{truth}}\cup\{A_{\text{unvalued}}^{\texttt{truth}}\} to mean the allocation 𝒜truth\mathcal{A}^{\texttt{truth}} with the bundle AunvaluedtruthA_{\text{unvalued}}^{\texttt{truth}} added to it, and similarly for 𝒜*lie{Aunvalued*lie}\mathcal{A}^{\texttt{*lie}}\cup\{A_{\text{unvalued}}^{\texttt{*lie}}\}. Note that there are n+1n+1 nodes in TT: each of the first nn nodes represents an agent in NN, while the last node represents the dummy agent unvalued. We make the following claim:

Claim

There are no edges emerging from the dummy agent unvalued.

To see why the Claim holds, recall that none of the nn agents truthfully values any good in AunvaluedtruthA_{\text{unvalued}}^{\texttt{truth}}. This means that any edge emerging from the node unvalued can only be as a result of some agent iSi\in S misreporting that he values it (when in fact he does not). However, such a good would go into Ailie,unvaluedA_{i}^{\texttt{lie,unvalued}}, which is explicitly excluded in our transformation graph TT.

The rest of the proof proceeds using similar ideas as the proof of Theorem 3.1. First, we can eliminate all cycles from TT. Let S\ell\in S. Since |Alie,valued|>|Atruth||A_{\ell}^{\texttt{lie,valued}}|>|A_{\ell}^{\texttt{truth}}| by (6), there must be an incoming edge to node \ell, and this edge cannot come from the node unvalued by our Claim. Since the graph is finite and all cycles have been eliminated, by starting from \ell and iteratively following an incoming edge, we must eventually reach a node jj with no incoming edge. In particular, it holds that |Aj*lie|<|Ajtruth||A_{j}^{\texttt{*lie}}|<|A_{j}^{\texttt{truth}}|. By condition (i), we have jSj\not\in S, and by the Claim, no node on the path from jj to \ell is the node unvalued.

Traverse the path from jj to \ell, and let ii be the first agent belonging to SS. Then, on the path from jj to ii, all agents (except ii) belong to NSN\setminus S. From 𝒜truth\mathcal{A}^{\texttt{truth}}, we can transfer goods along the path from jj to ii; let the allocation after this sequence of transfers be 𝒜^truth\widehat{\mathcal{A}}^{\texttt{truth}}. Since 𝒜truth\mathcal{A}^{\texttt{truth}} is an MWNWtie{}^{\text{tie}} allocation, it is preferred to 𝒜^truth\widehat{\mathcal{A}}^{\texttt{truth}} by the MWNWtie{}^{\text{tie}} rule. Note that |A^itruth|=|Aitruth|+1|\widehat{A}^{\texttt{truth}}_{i}|=|A^{\texttt{truth}}_{i}|+1, |A^jtruth|=|Ajtruth|1|\widehat{A}^{\texttt{truth}}_{j}|=|A^{\texttt{truth}}_{j}|-1, and |A^ktruth|=|Aktruth||\widehat{A}^{\texttt{truth}}_{k}|=|A^{\texttt{truth}}_{k}| for all kN{i,j}k\in N\setminus\{i,j\}, and observe that every transferred good in TT is transferred from an agent who truthfully values it to another agent who truthfully values it. Consequently, the weighted utility vector (|Aitruth|wi,|Ajtruth|wj)(|A_{i}^{\texttt{truth}}|^{w_{i}},|A_{j}^{\texttt{truth}}|^{w_{j}}) is preferred to the weighted utility vector ((|Aitruth|+1)wi,(|Ajtruth|1)wj)((|A_{i}^{\texttt{truth}}|+1)^{w_{i}},(|A_{j}^{\texttt{truth}}|-1)^{w_{j}}) by the MWNWtie{}^{\text{tie}} rule.444Even though we write agent ii’s weighted utility before agent jj’s in the weighted utility vectors, the actual order would be reversed if j<ij<i.

Similarly, from 𝒜*lie\mathcal{A}^{\texttt{*lie}}, we can transfer a good along the reverse path from ii to jj. Observe that in this transfer, every agent values (under 𝐯\mathbf{v^{\prime}}) the good that he receives, because for every agent hh receiving a good along this path, hNSh\in N\setminus S, which implies vh=vhv_{h}=v^{\prime}_{h} by condition (ii). As a result, this path from ii to jj also exists when going from 𝒜lie\mathcal{A}^{\texttt{lie}} to 𝒜truth\mathcal{A}^{\texttt{truth}}. Let the allocation after such a transfer be 𝒜^lie\widehat{\mathcal{A}}^{\texttt{lie}}. Since 𝒜lie\mathcal{A}^{\texttt{lie}} is an MWNWtie{}^{\text{tie}} allocation, it is preferred to 𝒜^lie\widehat{\mathcal{A}}^{\texttt{lie}} by the MWNWtie{}^{\text{tie}} rule according to the valuation profile 𝐯\mathbf{v^{\prime}}. Note that |A^ilie|=|Ailie|1|\widehat{A}^{\texttt{lie}}_{i}|=|A^{\texttt{lie}}_{i}|-~{}1, |A^jlie|=|Ajlie|+1|\widehat{A}^{\texttt{lie}}_{j}|=|A^{\texttt{lie}}_{j}|+1, and |A^klie|=|Aklie||\widehat{A}^{\texttt{lie}}_{k}|=|A^{\texttt{lie}}_{k}| for all kN{i,j}k\in N\setminus\{i,j\}. Hence, the weighted utility vector (|Ailie|wi,|Ajlie|wj)(|A_{i}^{\texttt{lie}}|^{w_{i}},|A_{j}^{\texttt{lie}}|^{w_{j}}) is preferred to the weighted utility vector ((|Ailie|1)wi,(|Ajlie|+1)wj)((|A_{i}^{\texttt{lie}}|-1)^{w_{i}},(|A_{j}^{\texttt{lie}}|+1)^{w_{j}}) by the MWNWtie{}^{\text{tie}} rule.

Now, recall that we have

|Ailie||Ai*lie|>|Aitruth| and |Ajtruth|>|Aj*lie|=|Ajlie|,|A_{i}^{\texttt{lie}}|\geq|A_{i}^{\texttt{*lie}}|>|A_{i}^{\texttt{truth}}|\quad\text{ and }\quad|A_{j}^{\texttt{truth}}|>|A_{j}^{\texttt{*lie}}|=|A_{j}^{\texttt{lie}}|,

where the last equality holds since jSj\not\in S. Since bundle sizes are integers, we get

|Ailie||Ai*lie||Aitruth|+1 and |Ajtruth|1|Aj*lie|=|Ajlie|.|A_{i}^{\texttt{lie}}|\geq|A_{i}^{\texttt{*lie}}|\geq|A_{i}^{\texttt{truth}}|+1\quad\text{ and }\quad|A_{j}^{\texttt{truth}}|-1\geq|A_{j}^{\texttt{*lie}}|=|A_{j}^{\texttt{lie}}|. (7)

In particular, |Ailie||Ai*lie|1|A_{i}^{\texttt{lie}}|\geq|A_{i}^{\texttt{*lie}}|\geq 1 and |Ajtruth|1|A_{j}^{\texttt{truth}}|\geq 1. We consider the following two cases based on the size of |Ajtruth||A_{j}^{\texttt{truth}}|.

Case 1: |Ajtruth|=1|A_{j}^{\texttt{truth}}|=1.

Then |Ajlie|=0|A_{j}^{\texttt{lie}}|=0. If |Ailie|>1|A_{i}^{\texttt{lie}}|>1, then the allocation 𝒜^lie\widehat{\mathcal{A}}^{\texttt{lie}}, with weighted utility vector ((|Ailie|1)wi,(|Ajlie|+1)wj)((|A_{i}^{\texttt{lie}}|-1)^{w_{i}},(|A_{j}^{\texttt{lie}}|+1)^{w_{j}}) for agents ii and jj, has strictly more agents receiving positive utility, thereby contradicting the fact that 𝒜lie\mathcal{A}^{\texttt{lie}} is an MWNWtie{}^{\text{tie}} allocation. Thus, |Ailie|=1|A_{i}^{\texttt{lie}}|=1, which by (7) means that |Aitruth|=0|A_{i}^{\texttt{truth}}|=0. Since (|Ailie|wi,|Ajlie|wj)(|A_{i}^{\texttt{lie}}|^{w_{i}},|A_{j}^{\texttt{lie}}|^{w_{j}}) is preferred to ((|Ailie|1)wi,(|Ajlie|+1)wj)((|A_{i}^{\texttt{lie}}|-~{}1)^{w_{i}},(|A_{j}^{\texttt{lie}}|+1)^{w_{j}}), it must be that i<ji<j. However, since the weighted utility vector (|Aitruth|wi,|Ajtruth|wj)(|A_{i}^{\texttt{truth}}|^{w_{i}},|A_{j}^{\texttt{truth}}|^{w_{j}}) is preferred to ((|Aitruth|+1)wi,(|Ajtruth|1)wj)((|A_{i}^{\texttt{truth}}|+1)^{w_{i}},(|A_{j}^{\texttt{truth}}|-1)^{w_{j}}), we must have j<ij<i, a contradiction.

Case 2: |Ajtruth|>1|A_{j}^{\texttt{truth}}|>1.

If |Aitruth|=0|A_{i}^{\texttt{truth}}|=0, then the allocation 𝒜truth\mathcal{A}^{\texttt{truth}}, with weighted utility vector ((|Aitruth|+1)wi,(|Ajtruth|1)wj)((|A_{i}^{\texttt{truth}}|+1)^{w_{i}},(|A_{j}^{\texttt{truth}}|-1)^{w_{j}}) for agents ii and jj, has strictly more agents receiving positive utility, thereby contradicting the fact that 𝒜truth\mathcal{A}^{\texttt{truth}} is an MWNWtie{}^{\text{tie}} allocation. Thus, |Aitruth|>0|A_{i}^{\texttt{truth}}|>~{}0, which by (7) means that |Ailie|>1|A_{i}^{\texttt{lie}}|>1. If |Ajlie|=0|A_{j}^{\texttt{lie}}|=0, then we arrive at the same contradiction as we did at the beginning of Case 1. Thus, |Ajlie|>0|A_{j}^{\texttt{lie}}|>0, which by (7) means that |Ajtruth|>1|A_{j}^{\texttt{truth}}|>1. Since (|Aitruth|wi,|Ajtruth|wj)(|A_{i}^{\texttt{truth}}|^{w_{i}},|A_{j}^{\texttt{truth}}|^{w_{j}}) is preferred to ((|Aitruth|+1)wi,(|Ajtruth|1)wj)((|A_{i}^{\texttt{truth}}|+1)^{w_{i}},(|A_{j}^{\texttt{truth}}|-1)^{w_{j}}), we have

|Aitruth|wi|Ajtruth|wj(|Aitruth|+1)wi(|Ajtruth|1)wj1,\frac{|A_{i}^{\texttt{truth}}|^{w_{i}}|A_{j}^{\texttt{truth}}|^{w_{j}}}{(|A_{i}^{\texttt{truth}}|+1)^{w_{i}}(|A_{j}^{\texttt{truth}}|-1)^{w_{j}}}\geq 1, (8)

where the denominator is nonzero as |Ajtruth|>1|A_{j}^{\texttt{truth}}|>1. From (7), we have |Ailie||Aitruth|+1|A_{i}^{\texttt{lie}}|\geq|A_{i}^{\texttt{truth}}|+1 and |Ajtruth|1|Ajlie||A_{j}^{\texttt{truth}}|-1\geq|A_{j}^{\texttt{lie}}|, which give us

1|Ailie|1|Aitruth|+1 and 1|Ajlie|1|Ajtruth|1.-\frac{1}{|A_{i}^{\texttt{lie}}|}\geq-\frac{1}{|A_{i}^{\texttt{truth}}|+1}\quad\text{ and }\quad\frac{1}{|A_{j}^{\texttt{lie}}|}\geq\frac{1}{|A_{j}^{\texttt{truth}}|-1}. (9)

All the denominators in the above inequalities are nonzero as |Ailie|>1|A_{i}^{\texttt{lie}}|>1, |Ajlie|>0|A_{j}^{\texttt{lie}}|>0, and |Ajtruth|>1|A_{j}^{\texttt{truth}}|>1. Also, since (|Ailie|wi,|Ajlie|wj)(|A_{i}^{\texttt{lie}}|^{w_{i}},|A_{j}^{\texttt{lie}}|^{w_{j}}) is preferred to ((|Ailie|1)wi,(|Ajlie|+1)wj)((|A_{i}^{\texttt{lie}}|-1)^{w_{i}},(|A_{j}^{\texttt{lie}}|+1)^{w_{j}}), we get

(|Ailie|1)wi(|Ajlie|+1)wj|Ailie|wi|Ajlie|wj1,\frac{(|A_{i}^{\texttt{lie}}|-1)^{w_{i}}(|A_{j}^{\texttt{lie}}|+1)^{w_{j}}}{|A_{i}^{\texttt{lie}}|^{w_{i}}|A_{j}^{\texttt{lie}}|^{w_{j}}}\leq 1, (10)

where the denominator is nonzero as |Ailie|>1|A_{i}^{\texttt{lie}}|>1 and |Ajlie|>0|A_{j}^{\texttt{lie}}|>0. Now,

(|Ailie|1)wi(|Ajlie|+1)wj|Ailie|wi|Ajlie|wj\displaystyle\frac{(|A_{i}^{\texttt{lie}}|-1)^{w_{i}}(|A_{j}^{\texttt{lie}}|+1)^{w_{j}}}{|A_{i}^{\texttt{lie}}|^{w_{i}}|A_{j}^{\texttt{lie}}|^{w_{j}}} =(11|Ailie|)wi(1+1|Ajlie|)wj\displaystyle=\left(1-\frac{1}{|A_{i}^{\texttt{lie}}|}\right)^{w_{i}}\left(1+\frac{1}{|A_{j}^{\texttt{lie}}|}\right)^{w_{j}}
(11|Aitruth|+1)wi(1+1|Ajtruth|1)wj\displaystyle\geq\left(1-\frac{1}{|A_{i}^{\texttt{truth}}|+1}\right)^{w_{i}}\left(1+\frac{1}{|A_{j}^{\texttt{truth}}|-1}\right)^{w_{j}}
=|Aitruth|wi|Ajtruth|wj(|Aitruth|+1)wi(|Ajtruth|1)wj\displaystyle=\frac{|A_{i}^{\texttt{truth}}|^{w_{i}}|A_{j}^{\texttt{truth}}|^{w_{j}}}{(|A_{i}^{\texttt{truth}}|+1)^{w_{i}}(|A_{j}^{\texttt{truth}}|-1)^{w_{j}}} (11)
1,\displaystyle\geq 1,

where the second line follows from (9) and the last line is as a result of (8). Since MWNWtie{}^{\text{tie}} chooses a lexicographically dominating allocation among all MWNW allocations, (8) can be an equality only if j<ij<i, and (10) can be an equality only if i<ji<j. Combining (8), (10), and (Case 2: |Ajtruth|>1|A_{j}^{\texttt{truth}}|>1.) yields

1\displaystyle 1 (|Ailie|1)wi(|Ajlie|+1)wj|Ailie|wi|Ajlie|wj|Aitruth|wi|Ajtruth|wj(|Aitruth|+1)wi(|Ajtruth|1)wj1,\displaystyle\geq\frac{(|A_{i}^{\texttt{lie}}|-1)^{w_{i}}(|A_{j}^{\texttt{lie}}|+1)^{w_{j}}}{|A_{i}^{\texttt{lie}}|^{w_{i}}|A_{j}^{\texttt{lie}}|^{w_{j}}}\geq\frac{|A_{i}^{\texttt{truth}}|^{w_{i}}|A_{j}^{\texttt{truth}}|^{w_{j}}}{(|A_{i}^{\texttt{truth}}|+1)^{w_{i}}(|A_{j}^{\texttt{truth}}|-1)^{w_{j}}}\geq 1,

where either the leftmost or the rightmost inequality has to be strict, thereby giving us a contradiction.

In both cases, we have arrived at a contradiction, completing the proof. \square

An even stronger version of GSP, strong GSP, states that no group of agents can misreport their preferences so as to obtain a strictly higher utility for some of the agents in that group without hurting the other members of the group.

Definition 6 (Strong group-strategyproofness)

An allocation rule ff satisfies strong group-strategyproofness (strong GSP) if there do not exist valuation profiles 𝐯\mathbf{v} and 𝐯\mathbf{v^{\prime}} and a nonempty group of agents SNS\subseteq N such that for some nonempty CSC\subseteq S,

  • vi(Ai)>vi(Ai) for all iCv_{i}(A^{\prime}_{i})>v_{i}(A_{i})\text{ for all }i\in C,

  • vk(Ak)=vk(Ak) for all kSCv_{k}(A^{\prime}_{k})=v_{k}(A_{k})\text{ for all }k\in S\setminus C, and

  • vj=vjv_{j}=v^{\prime}_{j} for all jNSj\in N\setminus S,

where 𝒜=f(𝐯)\mathcal{A}=f(\mathbf{v}) and 𝒜=f(𝐯)\mathcal{A^{\prime}}=f(\mathbf{v^{\prime}}).

If the first condition is altered to hold for all iSi\in S and the second condition is removed, we obtain the standard version of GSP as introduced previously. Like GSP, strong GSP reduces to SP if we only consider singleton groups. We complement Theorem 4.1 by showing that MWNWtie{}^{\text{tie}} fails strong GSP even in the unweighted setting (in which case it reduces to MNWtie{}^{\text{tie}}).

Proposition 1

In the unweighted setting, MNWtie{}^{\text{tie}} does not satisfy strong group-strategyproofness even under binary valuations.

Proof

Consider an unweighted instance with three agents N={1,2,3}N=\{1,2,3\} and four goods G={g1,g2,g3,g4}G=\{g_{1},g_{2},g_{3},g_{4}\}, with agents’ valuation profile 𝐯\mathbf{v}:

𝐯\mathbf{v} g1g_{1} g2g_{2} g3g_{3} g4g_{4}
11 1 1 0 0
22 0 1 1 0
33 0 0 1 1

The MNWtie{}^{\text{tie}} rule returns the circled allocation A1={g1,g2}A_{1}=\{g_{1},g_{2}\}, A2={g3}A_{2}=\{g_{3}\}, A3={g4}A_{3}=\{g_{4}\} (recall that the rule break ties lexicographically), and the bundle values are v1(A1)=2v_{1}(A_{1})=2 and v2(A2)=v3(A3)=1v_{2}(A_{2})=v_{3}(A_{3})=1. Now, suppose agents 22 and 33 form a manipulating coalition and misreport their values for goods g3g_{3} and g2g_{2}, respectively. Denote this new valuation profile by 𝐯\mathbf{v^{\prime}}:

𝐯\mathbf{v^{\prime}} g1g_{1} g2g_{2} g3g_{3} g4g_{4}
11 1 1 0 0
22 0 1 0 0
33 0 1 1 1

Now, the MNWtie{}^{\text{tie}} rule returns the circled allocation A1={g1},A2={g2},A3={g3,g4}A_{1}=\{g_{1}\},A_{2}=\{g_{2}\},A_{3}=\{g_{3},g_{4}\}, and the bundle values are v1(A1)=v2(A2)=1v_{1}(A_{1})=v_{2}(A_{2})=1 and v3(A3)=2v_{3}(A_{3})=2. In this case, the misreporting of preferences by the group of agents {2,3}\{2,3\} led to a strictly higher utility for agent 33 and the same utility for agent 22, hence violating strong group-strategyproofness.555Note that in this example, even if agent 33 does not lie (i.e., v3=v3v^{\prime}_{3}=v_{3}), we arrive at the same outcome. \hfill\square

5 Conclusion and Future Work

In this work, we show that the maximum weighted Nash welfare rule with lexicographic tie-breaking, MWNWtie{}^{\text{tie}}, exhibits several desirable properties when agents have binary valuations. In particular, the rule satisfies resource- and population-monotonicity as well as group-strategyproofness, and can be implemented in polynomial time. Together with previous results on its fairness and efficiency [13], our results thus indicate that MWNWtie{}^{\text{tie}} is an attractive rule in the binary setting with arbitrary entitlements.

While prior work and ours have demonstrated a number of features of MWNWtie{}^{\text{tie}}, it is still an open question whether MWNWtie{}^{\text{tie}} (or its variants based on different tie-breaking of MWNW) is the unique rule that offers these features. An axiomatic characterization would further strengthen the case for MWNWtie{}^{\text{tie}}—such a characterization is not known even for MNWtie{}^{\text{tie}} in the unweighted setting as far as we are aware. Nevertheless, we briefly discuss how other candidate rules fall short in comparison to MWNWtie{}^{\text{tie}}.

  • One possible rule is a version of serial dictatorship, where the first agent picks all goods that she values, then the second agent, and so on. While it is not difficult to check that this rule is resource- and population-monotone, group-strategyproof, and Pareto-optimal, it can produce an extremely unfair outcome. Indeed, if all agents value every good and have equal weights, then the rule allocates all goods to the first agent, even though it is clear that a fair allocation should spread out the goods equally in this case.

  • In order to make the picks more balanced, a prominent class of rule to use is the class of picking sequences [13, 14]. In the unweighted setting, a well-known picking sequence is the round-robin algorithm, wherein the agents take turns picking their favorite goods in the order 1,2,,n,1,2,,n,1,2,1,2,\dots,n,1,2,\dots,n,1,2,\dots until the goods run out (we assume that agents break ties in favor of lower-indexed goods). However, a round-robin allocation is not necessarily Pareto-optimal, as seen in the following example:

    𝐯\mathbf{v} g1g_{1} g2g_{2}
    11 1 1
    22 1 0

    The returned (circled) allocation A1={g1},A2={g2}A_{1}=\{g_{1}\},A_{2}=\{g_{2}\} is Pareto-dominated by the allocation A1={g2},A2={g1}A_{1}=\{g_{2}\},A_{2}=\{g_{1}\}.

    Moreover, the round-robin algorithm fails (individual) strategyproofness. To see this, consider the following instance:

    𝐯\mathbf{v} g1g_{1} g2g_{2} g3g_{3} g4g_{4} g5g_{5} g6g_{6}
    11 1 1 1 1 0 0
    22 0 0 1 1 1 1

    According to the algorithm, agent 11 picks g1g_{1}, agent 22 picks g3g_{3}, agent 11 picks g2g_{2}, agent 22 picks g4g_{4}, agent 11 picks g5g_{5}, and agent 22 picks g6g_{6}, resulting in the circled allocation. Yet, agent 11 can benefit from the following manipulation:

    𝐯\mathbf{v^{\prime}} g1g_{1} g2g_{2} g3g_{3} g4g_{4} g5g_{5} g6g_{6}
    11 1 0 1 1 0 0
    22 0 0 1 1 1 1

    This time, agent 11 picks g1g_{1}, agent 22 picks g3g_{3}, agent 11 picks g4g_{4}, agent 22 picks g5g_{5}, agent 11 picks g2g_{2}, and agent 22 picks g6g_{6}. As a result, agent 11’s utility with respect to her true valuation function increases from 22 to 33.

  • Instead of letting the agents pick, one could take a global view and try to maximize a certain welfare notion, as MWNW does. In the unweighted setting, a commonly used notion is utilitarian welfare, i.e., the sum of the agents’ utilities. However, with binary valuations, optimizing the utilitarian welfare can result in varying degrees of fairness. For instance, when every good is valued by all agents, every allocation maximizes the utilitarian welfare (which is always mm, the number of goods), but an allocation that gives all goods to the same agent is clearly unfair.

  • A reasonable welfare notion for achieving fairness is egalitarian welfare. Since there are often several allocations that maximize the egalitarian welfare, a typical refinement is the leximin rule [26], which maximizes the smallest utility, then the second smallest utility, and so on. Halpern et al. [20] showed that with equal weights, the set of leximin allocations coincides with that of MNW allocations, so the known properties of MNW also apply to leximin (assuming that ties are broken according to MNWtie{}^{\text{tie}}). A natural extension of leximin to the weighted setting is to optimize the weighted utilities666For example, if all wiw_{i}’s are integers, there are w1++wnw_{1}+\dots+w_{n} goods, and each agent has value 11 for each good, then like MWNW, this extension ensures that agent ii receives wiw_{i} goods, which is intuitively the fair allocation for this instance. vi(Ai)/wiv_{i}(A_{i})/w_{i}. However, as Chakraborty et al. [15] noted, the resulting rule exhibits problematic behavior even in the simple case of two agents and one valuable good: since the minimum utility is always 0, it allocates the good to the agent with a smaller weight, as this makes the ratio vi(Ai)/wiv_{i}(A_{i})/w_{i} larger. More generally, if there are nn agents and m<nm<n goods valued by all agents, weighted leximin allocates one good each to the mm agents with the smallest weights.

We end this paper with some additional directions for future work.

  • As we discuss in Section 1, the advantages of MWNWtie{}^{\text{tie}} that we show in this paper cease to exist for agents with general additive valuations, even when the agents have equal entitlements. It would therefore be interesting to determine whether there are intermediate valuation classes between binary and general additive for which some of these advantages can be recovered. For example, Akrami et al. [1] recently considered 22-valued instances, wherein there exist positive integers pqp\leq q such that vi(g){p,q}v_{i}(g)\in\{p,q\} for all iNi\in N and gGg\in G, and showed that maximizing the Nash welfare (in the unweighted setting) is computationally tractable if pp divides qq but intractable otherwise.

  • Since MWNWtie{}^{\text{tie}} fails strong group-strategyproofness even in the unweighted setting, it is natural to ask whether there are rules that simultaneously satisfy strong group-strategyproofness and fairness/monotonicity properties. Note that satisfying strong group-strategyproofness alone is trivial, for example, by ignoring the agents’ preferences and choosing a fixed allocation.

Acknowledgments

This work was partially supported by an NUS Start-up Grant. We thank the anonymous reviewers for their valuable comments.

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