Budget-feasible Procurement Mechanisms in Two-sided Markets

This paper considers the mechanism design problem in two-sided markets where multiple strategic buyers come with budgets to procure as much value of items as possible from the strategic sellers. Each seller holds an item with public value and is allowed to bid its private cost. Buyers could claim their budgets, not necessarily the true ones. The goal is to seek budget-feasible mechanisms that ensure sellers are rewarded enough payment and buyers' budgets are not exceeded. Our main contribution is a random mechanism that guarantees various desired theoretical guarantees like the budget feasibility, the truthfulness on the sellers' side and the buyers' side simultaneously, and constant approximation to the optimal total procured value of buyers.