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October 20, 2025Open Access

Tight Efficiency Bounds for the Probabilistic Serial Mechanism under Cardinal Preferences

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Authors

JGJugal GargYTYixin TaoLVLászló A. Végh

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Overview

The analysis reveals $( ext{ln}(n)+2)$-approximate Pareto efficiency in allocation tasks, indicating efficiency bounds under cardinal preferences.

Key Points

  • The Probabilistic Serial mechanism shows $( ext{ln}(n)+2)$-approximate Pareto efficiency under cardinal preferences, addressing a significant performance gap.
  • A polynomial-time algorithm computes a fair allocation that is envy-free and approximately Pareto-efficient in $O( ext{sqrt}(n))$ welfare degradation.
  • This research establishes that the PS mechanism can also handle chore allocations, ensuring $n$-approximately Pareto-efficient outcomes.
  • The results offer the first bounds for fair, efficient allocation in cardinal preference scenarios, contributing to the assignment problem framework.

Cite This Study

Garg et al. (2025) studied this question.

synapsesocial.com/papers/68f5fcdc8d54a28a75cf24f6https://doi.org/10.48550/arxiv.2507.03359
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