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arXiv · 2610.10456

Risk-minimizing GUE-implementations of truthful reporting in a Dynamic Social Choice Problem

Endre Csóka·Máté Viczián
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Abstract

The Guaranteed Utility Mechanism (GUM) was introduced to implement efficiency in Guaranteed Utility Equilibrium (GUE) in dynamic social choice problems. We show that this mechanism also has a previously unknown connection to risk minimization. Fixing an efficient decision policy, we study variance-minimizing budget-balanced transfer rules in the class of GUE-implementations of truthful reporting. A symmetrized version of GUM (sym-GUM) minimizes the sum of the agents' utility variances under truthful reporting when there is no public state. When a public state is present, a slight modification of this rule yields the minimizer for the same objective. Sym-GUM, however, does not minimize transfer risk. The minimizer for that problem is instead the symmetrized version of a closely related GUM-like transfer rule. In both problems, the minimizing truthful total transfers are unique up to agent-specific constants summing to zero and events of probability zero.

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Endre Csóka, Máté Viczián. 2026-10-07. Risk-minimizing GUE-implementations of truthful reporting in a Dynamic Social Choice Problem. https://arxiv.org/abs/2610.10456

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