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Credibility Trilemma in Polymatroidal Service Markets

Author

Listed:
  • Lauri Lov'en
  • Sujit Gujar
  • Kalle Timperi
  • Hassan Mehmood
  • Praveen Kumar Donta
  • Sasu Tarkoma
  • Schahram Dustdar

Abstract

Mechanism-mediated service markets with polymatroidal feasibility admit efficient, dominant-strategy incentive-compatible (DSIC) allocation, but these guarantees implicitly assume truthful execution by the marketplace operator. Modelling the operator as a strategic player, we establish a credibility trilemma: for single-parameter agents on a non-modular polymatroid, no static sealed-bid mechanism is simultaneously revenue-optimal, DSIC for agents, and credible for the operator. We introduce the Cost of Non-Credibility (CoNC) as a price-of-anarchy-style welfare-loss measure and obtain tight $\Theta$-bounds across five topology classes (single-edge, series, parallel, tree, series-parallel), plus a matching upper bound $O(|\mathcal{S}|)$ on general DAGs realised by an $\Omega(|\mathcal{S}|)$ witness on the SP-augmented sub-family, turning the trilemma into a structural quantity. Three structurally distinct resolutions follow: public broadcast or deferred-revelation commitment, administrative domain separation under settlement separation and four side conditions, and integrator competition orthogonal to mechanism execution under disjoint actors. An instance-level grounding over the edge-pricing market of Amin et al. confirms the trilemma's robustness on a refereed external setting. The result establishes marketplace neutrality as a first-order design constraint on polymatroidal service markets rather than an implementation detail: where the operator is a strategic player, credibility trades off against revenue optimality and agent incentive compatibility along structurally characterised lines.

Suggested Citation

  • Lauri Lov'en & Sujit Gujar & Kalle Timperi & Hassan Mehmood & Praveen Kumar Donta & Sasu Tarkoma & Schahram Dustdar, 2026. "Credibility Trilemma in Polymatroidal Service Markets," Papers 2605.26604, arXiv.org.
  • Handle: RePEc:arx:papers:2605.26604
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