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The paper provides a procedure which given a mechanism which is IR and IC, outputs a mechanism which is IR, IC and BB with a loss of welfare. The welfare achieved by the procedure is shown to be bounded for a wide range of domains. In particular, the results improve on existing solutions for problems such as double sided markets with homogenous goods (McAffee 91), distributed markets and several kinds of supply chains. The solution also provides budget balanced mechanisms for several open problems such as combinatorial double sided auctions and distributed markets with strategic transportation edges. |