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Suppose we add to E 1 the edge ( v x,b ,v x,a ). This would allow the mechanism
to increase the flow in the following path by exactly 1: s, v e ,v x,b ,v x,a ,t , resulting
in a flow f . The flow through A 1 's edges is exactly the same as before, except
there is now a flow of 1 through ( v x,b ,v x,a ), so v 1 ( f )= v 1 ( f ) + 1. Since the
payment to the mechanism is always less than 1, the total utility of A 1 has
increased, so E 1 was not an optimal choice for A 1 to begin with.
Lemma 3. If A 1 declares E 1
E 1 such that EC G,E 1 = E, the mechanism can
choose a flow f such that
|
f
|
=
|
E
|
.
Proof. We can fill the capacities of all the edges between L 0 and L 1 ,havingthe
vertices of L 1 with a total incoming flow of
|
E
|
.Since EC G,E 1 = E ,wealsohave
EC G ,E 1
, and every vertex v e i in L 1 is connected to at least
one vertex v x,b in layer L 2 that is connected (in turn) to v x,a in layer L 3 by an
edge e
=
{
e e i
|
e i
E
}
E 1 . We choose the flow f ( v e i ,v x,b ) = 1. We then continue the flow by
sending the incoming flow of vertex v x,b to v x,a ,bychoosing
f ( v x,b ,v x,a )=
v e i ∈L 1
f ( v e i ,v x,b ) .
(8)
We can do this since the capacity of the edges between L 2 and L 3 is
|
E
|
,so
c ( v x,b ,v x,a )=
, and there is no danger of having a flow coming into a ver-
tex v x,b higher than the total capacity of its outgoing edges. The flow is then
continued by sending all the incoming flow of vertex v x,a to the target vertex:
f ( v x,a ,t )= f ( v x,b ,v x,a ). Again, this is possible since the capacity of the edges
between L 3 and L 4 is
|
E
|
|
E
|
.
Therefore, the optimal subset of edges that A 1 can declare, E 1
E 1 , allows the
mechanism to achieve the maximal possible flow f ,ofsize
f |
|
=
|
E
|
.
Lemma 4. The optimal subset of edges for A 1 , E 1
E 1 , gives A 1 a valuation
of v 1 ( f )=
|
E
|
.
Proof. From Lemma 2 and Lemma 3 we know that if A 1 declares E 1 in the
optimal solution, the mechanism can choose a flow f such that
.By
Lemma 1 this is a maximal flow that maximizes the utility of A 1 .Since A 1
controls all the edges between L 2 and L 3 and has no other edges, we have a
total flow of
|
f
|
=
|
E
|
|
E
|
through A 1 's edges.
As a private case of Lemma 4, we get that A 1 can get a valuation of
by
declaring all of its edges, since EC G,E 1 = E .Thiscasegives A 1 a utility of
|
|
E
|
E
|−
edges.
Lemma 4 shows that the optimal subset of edges for A 1 , E 1
c
|
E 1 |
, since we have declared
|
E 1 |
E 1 ,gives A 1
a valuation of v 1 ( f )=
. However, to calculate A 1 's utility in this case, we
must also know the payment that A 1 gives the mechanism. This payment only
depends on the number of edges in E 1 .
|
E
|
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