Improved Online Contention Resolution for Matchings and Applications to the Gig Economy

TL;DR

This paper introduces a new online contention resolution scheme that improves approximation ratios for matching problems in the gig economy, leading to better algorithms for sequential pricing and related applications.

Contribution

It presents a novel randomized online contention resolution scheme with improved balance factors for bipartite and general graphs, enhancing approximation algorithms for sequential pricing.

Findings

Achieves a 0.456-balanced RO-OCRS for bipartite graphs.

Achieves a 0.45-balanced RO-OCRS for general graphs.

Provides a 0.456-approximate algorithm for the sequential pricing problem.

Abstract

Motivated by applications in the gig economy, we study approximation algorithms for a \emph{sequential pricing problem}. The input is a bipartite graph $G=(I,J,E)$ between individuals $I$ and jobs $J$. The platform has a value of $v_j$ for matching job $j$ to an individual worker. In order to find a matching, the platform can consider the edges $(i j) \in E$ in any order and make a one-time take-it-or-leave-it offer of a price $\pi_{ij} = w$ of its choosing to $i$ for completing $j$. The worker accepts the offer with a known probability $ p_{ijw} $; in this case the job and the worker are irrevocably matched. What is the best way to make offers to maximize revenue and/or social welfare? The optimal algorithm is known to be NP-hard to compute (even if there is only a single job). With this in mind, we design efficient approximations to the optimal policy via a new Random-Order Online Contention Resolution Scheme (RO-OCRS) for matching. Our main result is a 0.456-balanced RO-OCRS in bipartite graphs and a 0.45-balanced RO-OCRS in general graphs. These algorithms improve on the recent bound of $\frac{1}{2}(1-e^{-2})\approx 0.432$ of [BGMS21], and improve on the best known lower bounds for the correlation gap of matching, despite applying to a significantly more restrictive setting. As a consequence of our OCRS results, we obtain a $0.456$-approximate algorithm for the sequential pricing problem. We further extend our results to settings where workers can only be contacted a limited number of times, and show how to achieve improved results for this problem, via improved algorithms for the well-studied stochastic probing problem.