May 2014
We provide polynomial-time approximately optimal Bayesian mechanisms for makespan minimization on unrelated machines as well as for max-min fair allocations of indivisible goods, with approximation factors of 2 and min{m−k+1,Õ (k√)} respectively, matching the approximation ratios of best known polynomial-time emph{algorithms} (for max-min fairness, the latter claim is true for certain ratios of the number of goods m to people k). Our mechanisms are obtained by establishing a polynomial-time approximation-sensitive reduction from the problem of designing approximately optimal {em mechanisms} for some arbitrary objective to that of designing bi-criterion approximation {em algorithms} for the same objective plus a linear allocation cost term. Our reduction is itself enabled by extending the celebrated “equivalence of separation and optimization”[GLSS81,KP80] to also accommodate bi-criterion approximations. Moreover, to apply the reduction to the specific problems of makespan and max-min fairness we develop polynomial-time bi-criterion approximation algorithms for makespan minimization with costs and max-min fairness with costs, adapting the algorithms of [ST93], [BD05] and [AS07] to the type of bi-criterion approximation that is required by the reduction.