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The Average-Value Allocation Problem

The Average-Value Allocation Problem

We initiate the study of centralized algorithms for welfare-maximizing allocation of goods to buyers subject to average-value constraints. We show that this problem is NP-hard to approximate beyond a factor of $\frac{e}{e-1}$, and provide a $\frac{4e}{e-1}$-approximate offline algorithm. For the online setting, we show that no non-trivial approximations are achievable …