Multi-Dimensional Matching in Market Design
About
This paper proposes a computationally efficient mechanism for multi-dimensional matching markets where agents report preferences over object features rather than complete utility assessments. We use Singular Value Decomposition (SVD) to identify the principal direction of variation in feature space and match agents to objects along this dimension, reducing a complex multi-dimensional problem to an effectively one-dimensional problem solvable in $O(N \log N)$ time. We show that when data exhibit low effective dimensionality, our mechanism approximately maximizes Nash Social Welfare, satisfies distributional truthfulness, and achieves symmetry. We establish a novel connection between Nash Social Welfare and Geometric Distributionally Robust Optimization, providing robustness guaranties. Numerical experiments demonstrate that our approach achieves 99\% optimal welfare while running three orders of magnitude faster than direct optimization. The framework applies naturally to school choice, labor markets, and course allocation, where feature-based elicitation reduces the cognitive burden on agents.
Related benchmarks
| Task | Dataset | Result | Rank | |
|---|---|---|---|---|
| Resource Allocation | Market Simulation 100 agents, 20 products | Mean Utility285.4 | 4 |