Fractionally subadditive valuation

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A set function is called fractionally subadditive, or XOS (not to be confused with OXS), if it is the maximum of several additive set functions. This valuation class was defined, and termed XOS, by Noam Nisan, in the context of combinatorial auctions. [1] The term fractionally subadditive was given by Uriel Feige. [2]

Contents

Definition

There is a finite base set of items, .

There is a function which assigns a number to each subset of .

The function is called fractionally subadditive (or XOS) if there exists a collection of set functions, , such that: [3]

Equivalent Definition

The name fractionally subadditive comes from the following equivalent definition: a set function is fractionally subadditive if, for any and any collection with and such that for all , we have .

Relation to other utility functions

Every submodular set function is XOS, and every XOS function is a subadditive set function. [1]

See also: Utility functions on indivisible goods.

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References

  1. 1 2 Nisan, Noam (2000). "Bidding and allocation in combinatorial auctions". Proceedings of the 2nd ACM conference on Electronic commerce - EC '00. p. 1. doi:10.1145/352871.352872. ISBN   1581132727.
  2. Feige, Uriel (2009). "On Maximizing Welfare when Utility Functions Are Subadditive". SIAM Journal on Computing. 39: 122–142. CiteSeerX   10.1.1.86.9904 . doi:10.1137/070680977.
  3. Christodoulou, George; Kovács, Annamária; Schapira, Michael (2016). "Bayesian Combinatorial Auctions". Journal of the ACM. 63 (2): 1. CiteSeerX   10.1.1.721.5346 . doi:10.1145/2835172.