  In the k-median problem we are given sets of facilities and customers, and
distances between them. For a given set F of facilities, the cost of serving a
customer u is the minimum distance between u and a facility in F. The goal is
to find a set F of k facilities that minimizes the sum, over all customers, of
their service costs.
  Following Mettu and Plaxton, we study the incremental medians problem, where
k is not known in advance, and the algorithm produces a nested sequence of
facility sets where the kth set has size k. The algorithm is c-cost-competitive
if the cost of each set is at most c times the cost of the optimum set of size
k. We give improved incremental algorithms for the metric version: an
8-cost-competitive deterministic algorithm, a 2e ~ 5.44-cost-competitive
randomized algorithm, a (24+epsilon)-cost-competitive, poly-time deterministic
algorithm, and a (6e+epsilon ~ .31)-cost-competitive, poly-time randomized
algorithm.
  The algorithm is s-size-competitive if the cost of the kth set is at most the
minimum cost of any set of size k, and has size at most s k. The optimal
size-competitive ratios for this problem are 4 (deterministic) and e
(randomized). We present the first poly-time O(log m)-size-approximation
algorithm for the offline problem and first poly-time O(log m)-size-competitive
algorithm for the incremental problem.
  Our proofs reduce incremental medians to the following online bidding
problem: faced with an unknown threshold T, an algorithm submits "bids" until
it submits a bid that is at least the threshold. It pays the sum of all its
bids. We prove that folklore algorithms for online bidding are optimally
competitive.
