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Analysis

This paper investigates efficient algorithms for the coalition structure generation (CSG) problem, a classic problem in game theory. It compares dynamic programming (DP), MILP branch-and-bound, and sparse relaxation methods. The key finding is that sparse relaxations can find near-optimal coalition structures in polynomial time under a specific random model, outperforming DP and MILP algorithms in terms of anytime performance. This is significant because it provides a computationally efficient approach to a complex problem.
Reference

Sparse relaxations recover coalition structures whose welfare is arbitrarily close to optimal in polynomial time with high probability.