284 research outputs found
Extended Formulation Lower Bounds via Hypergraph Coloring?
Exploring the power of linear programming for combinatorial optimization
problems has been recently receiving renewed attention after a series of
breakthrough impossibility results. From an algorithmic perspective, the
related questions concern whether there are compact formulations even for
problems that are known to admit polynomial-time algorithms.
We propose a framework for proving lower bounds on the size of extended
formulations. We do so by introducing a specific type of extended relaxations
that we call product relaxations and is motivated by the study of the
Sherali-Adams (SA) hierarchy. Then we show that for every approximate
relaxation of a polytope P, there is a product relaxation that has the same
size and is at least as strong. We provide a methodology for proving lower
bounds on the size of approximate product relaxations by lower bounding the
chromatic number of an underlying hypergraph, whose vertices correspond to
gap-inducing vectors.
We extend the definition of product relaxations and our methodology to mixed
integer sets. However in this case we are able to show that mixed product
relaxations are at least as powerful as a special family of extended
formulations. As an application of our method we show an exponential lower
bound on the size of approximate mixed product formulations for the metric
capacitated facility location problem, a problem which seems to be intractable
for linear programming as far as constant-gap compact formulations are
concerned
Sherali-Adams gaps, flow-cover inequalities and generalized configurations for capacity-constrained Facility Location
Metric facility location is a well-studied problem for which linear
programming methods have been used with great success in deriving approximation
algorithms. The capacity-constrained generalizations, such as capacitated
facility location (CFL) and lower-bounded facility location (LBFL), have proved
notorious as far as LP-based approximation is concerned: while there are
local-search-based constant-factor approximations, there is no known linear
relaxation with constant integrality gap. According to Williamson and Shmoys
devising a relaxation-based approximation for \cfl\ is among the top 10 open
problems in approximation algorithms.
This paper advances significantly the state-of-the-art on the effectiveness
of linear programming for capacity-constrained facility location through a host
of impossibility results for both CFL and LBFL. We show that the relaxations
obtained from the natural LP at levels of the Sherali-Adams
hierarchy have an unbounded gap, partially answering an open question of
\cite{LiS13, AnBS13}. Here, denotes the number of facilities in the
instance. Building on the ideas for this result, we prove that the standard CFL
relaxation enriched with the generalized flow-cover valid inequalities
\cite{AardalPW95} has also an unbounded gap. This disproves a long-standing
conjecture of \cite{LeviSS12}. We finally introduce the family of proper
relaxations which generalizes to its logical extreme the classic star
relaxation and captures general configuration-style LPs. We characterize the
behavior of proper relaxations for CFL and LBFL through a sharp threshold
phenomenon.Comment: arXiv admin note: substantial text overlap with arXiv:1305.599
Banking Union: Where does it stand? What next?
In response to the fi nancial crisis, the Eurozone pursued a number of initiatives to create a safer fi nancial sector for the single market. However, the divergent preferences between core and periphery countries and the negative legacy of the crisis have watered down ambitious reform plans for substantial risk-sharing arrangements. In this context, the Eurozone cannot strike a balance between solidarity and crisis prevention. Compared to mid-2012, the “window of opportunity” for strengthening the banking union seems closed for the moment. Paradoxically, doing reforms in fair weather is much more diffi cult, while the immediate reason for the sudden move to Banking Union was the intensifying euro sovereign crisis. As a consequence, the implemented reforms have limited scope and they leave room to fi nancial markets for a disciplining role over states
Reforming the Greek financial system: a decade of failure
In this paper an attempt is made to describe the political economy of financial reforms in Greece. After a decade of deep crisis, Greek banks still suffer from the highest Non-Performing Loans (NPLs) ratio in the Eurozone, which occurred because of macroeconomic and bankspecific factors. However, due to the emphasis of policy makers on the macroeconomic determinants of NPLs and the contradicted incentives of the main stakeholders (bankers, politicians, regulators and investors), the need to improve the internal NPL management skills and the corporate governance of banks, both of which were poor, was neglected. As a result, the lost opportunity to restructure the Greek financial system aggravated the macroeconomic conditions for lack of a counter-cyclical lending policy
Approximation Algorithms for Covering/Packing Integer Programs
Given matrices A and B and vectors a, b, c and d, all with non-negative
entries, we consider the problem of computing min {c.x: x in Z^n_+, Ax > a, Bx
< b, x < d}. We give a bicriteria-approximation algorithm that, given epsilon
in (0, 1], finds a solution of cost O(ln(m)/epsilon^2) times optimal, meeting
the covering constraints (Ax > a) and multiplicity constraints (x < d), and
satisfying Bx < (1 + epsilon)b + beta, where beta is the vector of row sums
beta_i = sum_j B_ij. Here m denotes the number of rows of A.
This gives an O(ln m)-approximation algorithm for CIP -- minimum-cost
covering integer programs with multiplicity constraints, i.e., the special case
when there are no packing constraints Bx < b. The previous best approximation
ratio has been O(ln(max_j sum_i A_ij)) since 1982. CIP contains the set cover
problem as a special case, so O(ln m)-approximation is the best possible unless
P=NP.Comment: Preliminary version appeared in IEEE Symposium on Foundations of
Computer Science (2001). To appear in Journal of Computer and System Science
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