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v v j ,b in the constructed graph G . Every vertex in L 2 is connected to exactly one
vertex in L 3 .Vertex v v i ,b in L 2 is connected to v v i ,a in L 3 . All the vertices in L 3
are connected to the sink vertex t in L 4 . All the edges between L 0 and L 1 and
all the edges between L 1 and L 2 have a capacity of 1. All the other edges have
capacity of
|
E
|
.
As explained above, all inputs for FLOW-EDGE-SUBSET are given with
regard to A 1 .Thesetof A 1 's edges E 1 is ( v v i ,b ,v v i ,a ), for all possible i .Allof
the other edges belong to A 2 , and in the input given to FLOW-EDGE-SUBSET,
A 2 declares all its edges. The payment constant c is chosen such that c<
1
|V | + |E|
.
We demonstrate building the layer graph in Figure 2. The graph on the left of
Figure 2 is the input for the VERTEX-COVER, while the graph on the right is
the generated FLOW-EDGE-SUBSET layer graph.
Fig. 2. Reducing VERTEX-COVER to FLOW-EDGE-SUBSET
The intuition behind this construction is simple. A 1 's edges in the constructed
graph represent vertices in the original graph G . A 1 must choose a subset of edges
to report to the mechanism. Let E 1
E 1 be the subset of edges that A 1 chooses
to declare. Each such choice can also be seen as a choice of a subset of vertices
in G . These vertices cover certain edges in the original graph. We later refer to
these edges as EC G,E 1 .The v e i vertices in L 1 represent the edges in G .
The construction makes sure that the mechanism can only send flow from s
to v e i if e i is an edge covered by E 1 ( e i
EC G,E 1 ). In fact, a flow going through
one of A 1 's edges ( v v i ,b ,v v i ,a ) can only originate from a v e j vertex that represents
an edge e j that covers v i .
Thus A 1 's valuation is limited by the number of edges covered by his chosen
set of vertices, or in other words by
. Therefore, A 1 would choose E 1
|
EC G,E 1 |
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