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On Sybil-proof Mechanisms

Minghao Pan, Bruno Mazorra, Christoph Schlegel, Akaki Mamageishvili

TL;DR

This paper establishes a sharp impossibility for Sybil-proof mechanisms in the classical single-parameter mechanism design setting: any non-wasteful, symmetric, and dominant-strategy incentive compatible mechanism that is immune to a single Sybil attack must be a second-price auction with symmetric tie-breaking. The authors extend the analysis to Bayesian settings, showing that relaxing to Bayesian Sybil-proofness yields additional mechanisms that do not always allocate to the highest bidder, thus widening the design space under Sybil constraints. They formalize a Revelation Principle for Sybils and demonstrate that the dominance of second-price rules hinges on the strong ex-post requirements. Extensions show the impossibility does not automatically generalize to multi-unit or unit-demand settings, and that with type-convex valuations and superadditive interim utility the generalized second-price mechanism remains the unique solution under their axioms. Overall, the work clarifies the trade-offs between Sybil-resistance, allocation efficiency, and robustness of implementation in mechanism design, and highlights new avenues in Bayesian and approximate implementations.

Abstract

We show that in the single-parameter mechanism design environment, the only non-wasteful, symmetric, incentive compatible and Sybil-proof direct mechanism is a second price auction with symmetric tie-breaking. Thus, if there is private information, lotteries or other mechanisms that do not always allocate to a highest-value bidder are not Sybil-proof or not incentive compatible. Moreover, we show that our main (im)possibility result extends beyond linear valuations, but not to multi-unit object allocation with capacity constrained bidders. We also provide examples of mechanisms (with higher interim payoff for the bidders than a second price auction) that satisfy all of the other axioms and a weaker, Bayesian notion of Sybil-proofness. Thus, our (im)possibility result does not generalize to the Bayesian setting and we have a larger design space: With Sybil constraints, equivalence between dominant strategy and Bayesian implementation (that holds in classical single-parameter mechanism design without Sybils) no longer holds.

On Sybil-proof Mechanisms

TL;DR

This paper establishes a sharp impossibility for Sybil-proof mechanisms in the classical single-parameter mechanism design setting: any non-wasteful, symmetric, and dominant-strategy incentive compatible mechanism that is immune to a single Sybil attack must be a second-price auction with symmetric tie-breaking. The authors extend the analysis to Bayesian settings, showing that relaxing to Bayesian Sybil-proofness yields additional mechanisms that do not always allocate to the highest bidder, thus widening the design space under Sybil constraints. They formalize a Revelation Principle for Sybils and demonstrate that the dominance of second-price rules hinges on the strong ex-post requirements. Extensions show the impossibility does not automatically generalize to multi-unit or unit-demand settings, and that with type-convex valuations and superadditive interim utility the generalized second-price mechanism remains the unique solution under their axioms. Overall, the work clarifies the trade-offs between Sybil-resistance, allocation efficiency, and robustness of implementation in mechanism design, and highlights new avenues in Bayesian and approximate implementations.

Abstract

We show that in the single-parameter mechanism design environment, the only non-wasteful, symmetric, incentive compatible and Sybil-proof direct mechanism is a second price auction with symmetric tie-breaking. Thus, if there is private information, lotteries or other mechanisms that do not always allocate to a highest-value bidder are not Sybil-proof or not incentive compatible. Moreover, we show that our main (im)possibility result extends beyond linear valuations, but not to multi-unit object allocation with capacity constrained bidders. We also provide examples of mechanisms (with higher interim payoff for the bidders than a second price auction) that satisfy all of the other axioms and a weaker, Bayesian notion of Sybil-proofness. Thus, our (im)possibility result does not generalize to the Bayesian setting and we have a larger design space: With Sybil constraints, equivalence between dominant strategy and Bayesian implementation (that holds in classical single-parameter mechanism design without Sybils) no longer holds.
Paper Structure (16 sections, 15 theorems, 99 equations)

This paper contains 16 sections, 15 theorems, 99 equations.

Key Result

Theorem 1

A direct mechanism is payment normalized, non-wasteful, symmetric, incentive compatible, and Sybil-proof if and only if it is a second price auction with symmetric tie-breaking.

Theorems & Definitions (32)

  • Theorem 1
  • proof
  • Lemma 1
  • proof
  • Lemma 2
  • proof
  • Lemma 3
  • proof
  • Example 1
  • Example 2
  • ...and 22 more