Cost Sharing under Private Valuation and Connection Control
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We consider a cost sharing problem on a weighted undirected graph, where all the nodes want to connect to a special node called source, and they need to share the total cost (weights) of the used edges. Each node except for the source has a private valuation of the connection, and it may block others' connections by strategically cutting its adjacent edges to reduce its cost share, which may increase the total cost. We aim to design mechanisms to prevent the nodes from misreporting their valuations and cutting their adjacent edges. We first show that it is impossible for such a mechanism to further satisfy budget balance (cover the total cost) and efficiency (maximize social welfare). Then, we design two feasible cost sharing mechanisms that incentivize each node to offer all its adjacent edges and truthfully report its valuation, and also satisfy either budget balance or efficiency.
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