Welfare Loss in Connected Resource Allocation
Xiaohui Bei, Alexander Lam, Xinhang Lu, Warut Suksompong
TL;DR
The paper defines egalitarian and utilitarian price of connectivity (PoC) to quantify welfare loss when demanding connected bundles in graph-structured indivisible allocations. It delivers tight or asymptotically tight bounds for two agents across dense and sparse graph classes (e.g., complete graphs with a matching removed, complete bipartite graphs, cycles, paths, stars, and trees) and extends to arbitrary numbers of agents with general bounds of O(m−n+1) for egalitarian PoC and O(n) for utilitarian PoC. Key results include exact values for several classes (e.g., Egal-PoC(K_m minus a matching) = (m−2)/(m−3) except L3/L5, and Util-PoC(K_{2, s}) = 4/3 when the smaller side has size 2) and a unified approach using structured instances and graph decompositions. The work provides theoretical insight into the trade-off between social welfare and connectivity constraints with implications for centralized decision-making in partitioning tasks and resource allocation under connectivity requirements.
Abstract
We study the allocation of indivisible items that form an undirected graph and investigate the worst-case welfare loss when requiring that each agent must receive a connected subgraph. Our focus is on both egalitarian and utilitarian welfare. Specifically, we introduce the concept of egalitarian (resp., utilitarian) price of connectivity, which captures the worst-case ratio between the optimal egalitarian (resp., utilitarian) welfare among all allocations and that among connected allocations. We provide tight or asymptotically tight bounds on the price of connectivity for several large classes of graphs in the case of two agents -- including graphs with vertex connectivity $1$ or $2$ and complete bipartite graphs -- as well as for paths, stars, and cycles in the general case where the number of agents can be arbitrary.
