Welfare Maximization in Fractional Hedonic Games

Haris Aziz, Serge Gaspers, Joachim Gudmundsson, Julián Mestre, Hanjo Täubig

Abstract: We consider the computational complexity of computing welfare maximizing partitions for fractional hedonic games--a natural class of coalition formation games that can be succinctly represented by a graph. For such games, welfare maximizing partitions constitute desirable ways to cluster the vertices of the graph. We present both intractability results and approximation algorithms for computing welfare maximizing partitions.