Signaling is an important topic in the study of asymmetric information in
economic settings. In particular, the transparency of information available to
a seller in an auction setting is a question of major interest. We introduce
the study of signaling when conducting a second price auction of a
probabilistic good whose actual instantiation is known to the auctioneer but
not to the bidders. This framework can be used to model impressions selling in
display advertising. We study the problem of computing a signaling scheme that
maximizes the auctioneer's revenue in a Bayesian setting.
To save time and money, businesses and individuals have begun outsourcing
their data and computations to cloud computing services. These entities would,
however, like to ensure that the queries they request from the cloud services
are being computed correctly. In this paper, we use the principles of economics
and competition to vastly reduce the complexity of query verification on
outsourced data. We consider two cases: First, we consider the scenario where
multiple non-colluding data outsourcing services exist, and then we consider
the case where only a single outsourcing service exists.
We consider a coordination game between an informed sender and an uninformed
decision maker, the receiver, who communicate over a noisy channel. The
sender's strategy, called a code, maps states of nature to signals. The
receiver's best response is to decode the received channel output as the state
with highest expected receiver payoff. Given this decoding, an equilibrium or
"Nash code" results if the sender encodes every state as prescribed. We show
two theorems that give sufficient conditions for Nash codes. First, a
receiver-optimal code defines a Nash code.
The Generalized Second Price (GSP) auction is the primary auction used for
monetizing the use of the Internet. It is well-known that truthtelling is not a
dominant strategy in this auction and that inefficient equilibria can arise. In
this paper we study the space of equilibria in GSP, and quantify the efficiency
loss that can arise in equilibria under a wide range of sources of uncertainty,
as well as in the full information setting. The traditional Bayesian game
models uncertainty in the valuations (types) of the participants.
We study a general aggregation problem in which a society has to determine
its position on each of several issues, based on the positions of the members
of the society on those issues. There is a prescribed set of feasible
evaluations, i.e., permissible combinations of positions on the issues. Among
other things, this framework admits the modeling of preference aggregation,
judgment aggregation, classification, clustering and facility location. An
important notion in aggregation of evaluations is strategy-proofness.
We explore the emergence of cooperation in the framework of the evolutionary
game theory. We present a minimal model for the emergence of cooperation in
growing systems with cultural reproduction where topological structure and the
evolution of strategies are decoupled instead of a coevolutionary dynamic. We
show minimal conditions to build up a cooperative system with real topological
structures for any natural selection intensity.
Queueing networks are typically modelled assuming that the arrival process is
exogenous, and unaffected by admission control, scheduling policies, etc. In
many situations, however, users choose the time of their arrival strategically,
taking delay and other metrics into account. In this paper, we develop a
framework to study such strategic arrivals into queueing networks. We start by
deriving a functional strong law of large numbers (FSLLN) approximation to the
queueing network.
In this paper, a novel framework for normative modeling of the spectrum
sensing and sharing problem in cognitive radios (CRs) as a transferable utility
(TU) cooperative game is proposed. Secondary users (SUs) jointly sense the
spectrum and cooperatively detect the primary user (PU) activity for
identifying and accessing unoccupied spectrum bands. The games are designed to
be balanced and super-additive so that resource allocation is possible and
provides SUs with an incentive to cooperate and form the grand coalition.
In this paper we analyze judgement aggregation problems in which a group of
agents independently votes on a set of complex propositions that has some
interdependency constraint between them(e.g., transitivity when describing
preferences). We consider the issue of judgement aggregation from the
perspective of approximation. That is, we generalize the previous results by
studying approximate judgement aggregation.
The paper deals with a mathematical model of a surveillance system based on a
net of sensors. The signals acquired by each node of the net are Markovian
process, have two different transition probabilities, which depends on the
presence or absence of an intruder nearby. The detection of the transition
probability change at one node should be confirmed by a detection of similar
change at some other sensors. Based on a simple game the model of a fusion
center is then constructed.
We study the design and approximation of optimal crowdsourcing contests.
Crowdsourcing contests can be modeled as all-pay auctions because entrants must
exert effort up-front to enter. Unlike all-pay auctions where a usual design
objective would be to maximize revenue, in crowdsourcing contests, the
principal only benefits from the submission with the highest quality.
Online learning algorithms that minimize regret provide strong guarantees in
situations that involve repeatedly making decisions in an uncertain
environment, e.g. a driver deciding what route to drive to work every day.
While regret minimization has been extensively studied in repeated games, we
study regret minimization for a richer class of games called bounded memory
games. In each round of a two-player bounded memory-m game, both players
simultaneously play an action, observe an outcome and receive a reward.
We study a market for private data in which a data analyst wishes to publicly
release a statistic computed over a database of private information. The
statistic we focus on is the inner product of the database entries with a
publicly known weight vector. Individuals that own the data incur a cost for
their loss of privacy quantified in terms of the differential-privacy guarantee
given by the analyst at the time of the release. To properly incentivize
individuals, the analyst must compensate them for the cost they incur.
We explore the emergence of cooperation in the framework of evolutionary game
theory. First we introduce the cooperation problem in a novel way that we
believe it have important consequences in how problem is addressed. Then we
present a minimal model for the emergence of cooperation in growing systems
with cultural reproduction where topological structure and the evolution of
strategies are decoupled instead a coevolution dynamic.
We consider the problem of distributed convergence to efficient outcomes in
coordination games through dynamics based on aspiration learning. Under
aspiration learning, a player continues to play an action as long as the
rewards received exceed a specified aspiration level. Here, the aspiration
level is a fading memory average of past rewards, and these levels also are
subject to occasional random perturbations.
We study the conflict between two links in a multiple-input single-output
interference channel. This setting is strictly competitive and can be related
to perfectly competitive market models. In such models, general equilibrium
theory is used to determine equilibrium measures that are Pareto optimal.
First, we consider the links to be consumers that can trade goods within
themselves. The goods in our setting correspond to beamforming vectors.
Intrusion Detection Systems (IDSs) are becoming essential to protecting
modern information infrastructures. The effectiveness of an IDS is directly
related to the computational resources at its disposal. However, it is
difficult to guarantee especially with an increasing demand of network capacity
and rapid proliferation of attacks. On the other hand, modern intrusions often
come as sequences of attacks to reach some predefined goals. It is therefore
critical to identify the best default IDS configuration to attain the highest
possible overall protection within a given resource budget.
In this article, we investigate the competitive interaction between
electrical vehicles or hybrid oil-electricity vehicles in a Cournot market
consisting of electricity transactions to or from an underlying electricity
distribution network. We provide a mean field game formulation for this
competition, and introduce the set of fundamental differential equations ruling
the behavior of the vehicles at the system equilibrium, namely the mean field
equilibrium.
A major achievement of mechanism design theory is a general method for the
construction of truthful mechanisms called VCG (Vickrey, Clarke, Groves). When
applying this method to complex problems such as combinatorial auctions, a
difficulty arises: VCG mechanisms are required to compute optimal outcomes and
are, therefore, computationally infeasible. However, if the optimal outcome is
replaced by the results of a sub-optimal algorithm, the resulting mechanism
(termed VCG-based) is no longer necessarily truthful.
The paper is devoted to quantization of extensive games with the use of both
the Marinatto-Weber and the Eisert-Wilkens-Lewenstein concept of quantum game.
We revise the current conception of quantum ultimatum game and we show why the
proposal is unacceptable. To support our comment, we present the new idea of
the quantum ultimatum game. Our scheme also makes a point of departure for a
protocol to quantize extensive games.
We investigate complexity issues related to pure Nash equilibria of strategic
games. We show that, even in very restrictive settings, determining whether a
game has a pure Nash Equilibrium is NP-hard, while deciding whether a game has
a strong Nash equilibrium is SigmaP2-complete. We then study practically
relevant restrictions that lower the complexity. In particular, we are
interested in quantitative and qualitative restrictions of the way each players
payoff depends on moves of other players.
In many online systems, individuals provide services for each other.
Typically, the recipient of the service obtains a benefit while the provider of
the service incurs a cost. Assuming that benefit exceeds cost, provision of the
service increases social welfare and should therefore be encouraged -- but the
individuals providing the service gain no (immediate) benefit from providing
the service and hence have an incentive to withhold service.
In this paper we study the approximate learnability of valuations commonly
used throughout economics and game theory for the quantitative encoding of
agent preferences. We provide upper and lower bounds regarding the learnability
of important subclasses of valuation functions that express
no-complementarities. Our main results concern their approximate learnability
in the distributional learning (PAC-style) setting.
Voting theory has become increasingly integrated with computational social
choice and multiagent systems. Computational complexity has been extensively
used as a shield against manipulation of voting systems, however for several
voting schemes this complexity may cause calculating the winner to be
computationally difficult. Of the many voting systems that have been studied
with regard to election manipulation, a few have been found to have an
unweighted coalitional manipulation problem that is NP-hard for a constant
number of manipulators despite having a winner problem that is in P.
BitTorrent is a widely-deployed, peer-to-peer file transfer protocol
engineered with a "tit for tat" mechanism that encourages cooperation.
Unfortunately, there is little incentive for nodes to altruistically provide
service to their peers after they finish downloading a file, and what altruism
there is can be exploited by aggressive clients like Bit- Tyrant. This
altruism, called seeding, is always beneficial and sometimes essential to
BitTorrent's real-world performance.
The class of weakly acyclic games, which includes potential games and
dominance-solvable games, captures many practical application domains. In a
weakly acyclic game, from any starting state, there is a sequence of
better-response moves that leads to a pure Nash equilibrium; informally, these
are games in which natural distributed dynamics, such as better-response
dynamics, cannot enter inescapable oscillations.
We study a routing game in which one of the players unilaterally acts
altruistically by taking into consideration the latency cost of other players
as well as his own. By not playing selfishly, a player can not only improve the
other players' equilibrium utility but also improve his own equilibrium
utility. To quantify the effect, we define a metric called the Value of
Unilateral Altruism (VoU) to be the ratio of the equilibrium utility of the
altruistic user to the equilibrium utility he would have received in Nash
equilibrium if he were selfish.
Except for special classes of games, there is no systematic framework for
analyzing the dynamical properties of multi-agent strategic interactions.
Potential games are one such special but restrictive class of games that allow
for tractable dynamic analysis. Intuitively, games that are "close" to a
potential game should share similar properties. In this paper, we formalize and
develop this idea by quantifying to what extent the dynamic features of
potential games extend to "near-potential" games.
Transmitters of a multiple access channel are assumed to freely choose their
power control strategy in order to be energy-efficient. We show that in a
stochastic game framework, we can develop energy-efficient distributed control
strategies which only require partial knowledge of the entire system.
Achievable utility equilibrium region is characterized and based on
time-sharing, an explicit power control strategy is proposed.
We study problems of scheduling jobs on related machines so as to minimize
the makespan in the setting where machines are strategic agents. In this
problem, each job $j$ has a length $l_{j}$ and each machine $i$ has a private
speed $t_{i}$. The running time of job $j$ on machine $i$ is $t_{i}l_{j}$. We
seek a mechanism that obtains speed bids of machines and then assign jobs and
payments to machines so that the machines have incentive to report true speeds
and the allocation and payments are also envy-free. We show that
We introduce the Knapsack Game, in which $m$ identical resources are to be
allocated among $n$ selfish agents. Each agent requests some number of
resources $x_i$ and specifies its true valuation $v_i(x_i)$ for receiving them,
to a central entity. We assume that the valuation functions exhibit diminishing
marginal returns. The pairs $(x_i, v_i(x_i))$ can be thought of as size-value
pairs defining a knapsack problem with capacity $m$.
We consider 2-player games played on a finite state space for infinite
rounds. The games are concurrent: in each round, the two players choose their
moves simultaneously; the current state and the moves determine the successor.
We consider omega-regular winning conditions given as parity objectives. We
consider the qualitative analysis problems: the computation of the almost-sure
and limit-sure winning set of states, where player 1 can ensure to win with
probability 1 and with probability arbitrarily close to 1, respectively.
In two-player finite-state stochastic games of partial observation on graphs,
in every state of the graph, the players simultaneously choose an action, and
their joint actions determine a probability distribution over the successor
states. We consider reachability objectives where player 1 tries to ensure a
target state to be visited almost-surely or positively. On the basis of
information, the game can be one-sided with either (a)player 1 or (b)player 2
having partial observation, or two-sided with both players having partial
observation.
Turn-based stochastic games and its important subclass Markov decision
processes (MDPs) provide models for systems with both probabilistic and
nondeterministic behaviors. We consider turn-based stochastic games with two
classical quantitative objectives: discounted-sum and long-run average
objectives. The game models and the quantitative objectives are widely used in
probabilistic verification, planning, optimal inventory control, network
protocol and performance analysis.
With the recent technological feasibility of electronic commerce over the
Internet, much attention has been given to the design of electronic markets for
various types of electronically-tradable goods. Such markets, however, will
normally need to function in some relationship with markets for other related
goods, usually those downstream or upstream in the supply chain. Thus, for
example, an electronic market for rubber tires for trucks will likely need to
be strongly influenced by the rubber market as well as by the truck market.
This paper discusses an interested party who wishes to influence the behavior
of agents in a game (multi-agent interaction), which is not under his control.
The interested party cannot design a new game, cannot enforce agents' behavior,
cannot enforce payments by the agents, and cannot prohibit strategies available
to the agents. However, he can influence the outcome of the game by committing
to non-negative monetary transfers for the different strategy profiles that may
be selected by the agents.
Much work in AI deals with the selection of proper actions in a given (known
or unknown) environment. However, the way to select a proper action when facing
other agents is quite unclear. Most work in AI adopts classical game-theoretic
equilibrium analysis to predict agent behavior in such settings. This approach
however does not provide us with any guarantee for the agent. In this paper we
introduce competitive safety analysis.
We introduce several methods of decomposition for two player normal form
games. Viewing the set of all games as a vector space, we exhibit explicit
orthonormal bases for the subspaces of potential games, zero-sum games, and
their orthogonal complements which we call anti-potential games and
anti-zero-sum games, respectively. Perhaps surprisingly, every anti-potential
game comes either from the Rock-Paper-Scissors type games (in the case of
symmetric games) or from the Matching Pennies type games (in the case of
asymmetric games).
Scoring rules for eliciting expert predictions of random variables are
usually developed assuming that experts derive utility only from the quality of
their predictions (e.g., score awarded by the rule, or payoff in a prediction
market). We study a more realistic setting in which (a) the principal is a
decision maker and will take a decision based on the expert's prediction; and
(b) the expert has an inherent interest in the decision. For example, in a
corporate decision market, the expert may derive different levels of utility
from the actions taken by her manager.
We study the problem of hiring a team of selfish agents to perform a task.
Each agent is assumed to own one or more elements of a set system, and the
auctioneer is trying to purchase a feasible solution by conducting an auction.
Our goal is to design auctions that are truthful and false-name-proof, meaning
that it is in the agents' best interest to reveal ownership of all elements
(which may not be known to the auctioneer a priori) as well as their true
incurred costs.
We consider coalitional games with transferable utilities (TU) characterized
by unknown but bounded and time-varying coalitions' values and call them robust
dynamic coalitional TU games. In the assumption that the game is played over
time a Game Designer (GD) allocates the reward to the players so to make the
grand coalition stable, in an average sense, on the long run. We highlight
three main contributions.
This paper presents a new exponential lower bound for the two most popular
deterministic variants of the strategy improvement algorithms for solving
parity, mean payoff, discounted payoff and simple stochastic games. The first
variant improves every node in each step maximizing the current valuation
locally, whereas the second variant computes the globally optimal improvement
in each step. We outline families of games on which both variants require
exponentially many strategy iterations.
We provide a Polynomial Time Approximation Scheme for the multi-dimensional
unit-demand pricing problem, when the buyer's values are independent (but not
necessarily identically distributed). For all epsilon>0, we obtain a
(1+epsilon)-factor approximation to the optimal revenue in time polynomial,
when the values are sampled from Monotone Hazard Rate (MHR) distributions,
quasi-polynomial, when sampled from regular distributions, and polynomial in
n^poly(log r), when sampled from general distributions supported on a set [u, r
* u].
We introduce a new measure of the discrepancy in strategic games between the
social welfare in a Nash equilibrium and in a social optimum, that we call
selfishness level. It is the smallest fraction of the social welfare that needs
to be added to the players' payoffs to ensure that a Nash equilibrium of the
resulting game is also its social optimum. This notion is unrelated to that of
price of stability.
We consider coalition formation games in which each player has preferences
over the other players and his preferences over coalitions are based on the
best player ($\mathcal{B}$-/B-hedonic games) or the worst player
($\mathcal{W}$/W-hedonic games) in the coalition. We show that for
$\mathcal{B}$-hedonic games, an individually stable partition is guaranteed to
exist and can be computed efficiently. Similarly, there exists a
polynomial-time algorithm which returns a Nash stable partition (if one exists)
for $\mathcal{B}$-hedonic games with strict preferences.
In lowest unique bid auctions, N players bid for an item. The winner is
whoever places the \emph{lowest} bid, provided that it is also unique. We
derive an analytical expression for the equilibrium distribution of the game as
a function of N and study its properties, which are then compared with a large
dataset of internet auctions. The empirical collective strategy reproduces the
theoretical equilibrium with striking accuracy for small N, while for larger N
the quality of the fit deteriorates.
An unknown positive number of items arrive at independent uniformly
distributed times in the interval [0,1] to a selector, whose task is to pick
online the last one. We show that under the assumption of an adversary
determining the number of items, there exists a game-theoretical equilibrium,
in other words the selector and the adversary both possess optimal strategies.
The probability of success of the selector with the optimal strategy is
estimated numerically to 0.352917000207196.
We study social welfare in one-sided matching markets where the goal is to
efficiently allocate n items to n agents that each have a complete, private
preference list and a unit demand over the items. Our focus is on allocation
mechanisms that do not involve any monetary payments.
We consider Markov Decision Processes (MDPs) with mean-payoff parity and
energy parity objectives. In system design, the parity objective is used to
encode \omega-regular specifications, and the mean-payoff and energy objectives
can be used to model quantitative resource constraints. The energy condition
requires that the resource level never drops below 0, and the mean-payoff
condition requires that the limit-average value of the resource consumption is
within a threshold.
This paper studies $n$-person simultaneous-move games with linear best
response function, where individuals interact within a given network structure.
This class of games have been used to model various settings, such as, public
goods, belief formation, peer effects, and oligopoly. The purpose of this paper
is to study the effect of the network structure on Nash equilibrium outcomes of
this class of games.
In this paper, we study the Nash dynamics of strategic interplays of n buyers
in a matching market setup by a seller, the market maker. Taking the standard
market equilibrium approach, upon receiving submitted bid vectors from the
buyers, the market maker will decide on a price vector to clear the market in
such a way that each buyer is allocated an item for which he desires the most
(a.k.a., a market equilibrium solution). While such equilibrium outcomes are
not unique, the market maker chooses one (maxeq) that optimizes its own
objective --- revenue maximization.
We analyze the problem of distributed power allocation for orthogonal
multiple access channels by considering a non-cooperative game whose strategy
space corresponds to the users' distribution of transmission power over the
network's channels. When the channels are static, we find that this game admits
an exact potential function and this allows us to show that it has a unique
equilibrium almost surely.
The focus of the iWIGP workshop is the interrelation between interactions,
games and protocols. How does computer science deal with nondeterministic
interactions where the actions a system takes are not (completely) determined
by the interactions the system is involved in? In computer science,
nondeterministic interactions are usually described by protocols. However,
these interactions can also be viewed as games.
We study the problem of selling a resource such as a spectrum license,
mineral rights, etc., through an auction mechanism. A buyer in turn utilizes
this resource to generate profit. The seller has a choice between two forms of
payment - charging the winner of the auction a one-time payment at the end of
the auction, or entering into a profit sharing contract with him. This is
inspired by a real example: the FCC spectrum auctions in the United States are
of one-time payment type, while the 3G spectrum auctions in India require that
the winners of an auction also pay a spectrum usage charge.
The Honey-Bee game is a two-player board game that is played on a connected
hexagonal colored grid or (in a generalized setting) on a connected graph with
colored nodes. In a single move, a player calls a color and thereby conquers
all the nodes of that color that are adjacent to his own current territory.
Both players want to conquer the majority of the nodes. We show that winning
the game is PSPACE-hard in general, NP-hard on series-parallel graphs, but easy
on outerplanar graphs.
If a game has a Nash equilibrium with probability values that are either zero
or Omega(1) then this equilibrium can be found exhaustively in polynomial time.
Somewhat surprisingly, we show that there is a PTAS for the games whose
equilibria are guaranteed to have small-O(1/n)-values, and therefore
large-Omega(n)-supports.
Partial-monitoring games are a mathematical framework for sequential decision
problems with imperfect feedback: The learner repeatedly chooses an action, the
nature responds with an outcome, and then the learner suffers a loss and
receives a feedback signal, both of which are fixed functions of the action and
the outcome. The goal of the learner is to minimize his total cumulative loss.
We make progress towards classification of these games based on their minimax
expected regret.
We consider the impact of incomplete information on incentives for node
cooperation in parallel relay networks with one source node, one destination
node, and multiple relay nodes. All nodes are selfish and strategic, interested
in maximizing their own profit instead of the social welfare. We consider the
practical situation where the channel state on any given relay path is not
observable to the source or to the other relays.
This paper develops a game-theoretic framework for the design and analysis of
a new class of incentive schemes called intervention schemes. We formulate
intervention games, propose a solution concept of intervention equilibrium, and
prove its existence in a finite intervention game. We apply our framework to
resource sharing scenarios in wireless communications, whose non-cooperative
outcomes without intervention yield suboptimal performance. We derive
analytical results and analyze illustrative examples in the cases of imperfect
and perfect monitoring.
We consider the line planning problem in public transportation, under a
robustness perspective. We present a mechanism for robust line planning in the
case of multiple line pools, when the line operators have a different utility
function per pool. We conduct an experimental study of our mechanism on both
synthetic and real-world data that shows fast convergence to the optimum. We
also explore a wide range of scenarios, varying from an arbitrary initial state
(to be solved) to small disruptions in a previously optimal solution (to be
recovered).
This article investigates selfish behavior in games where players are
embedded in a social context. A framework is presented which allows us to
measure the Windfall of Friendship, i.e., how much players benefit (compared to
purely selfish environments) if they care about the welfare of their friends in
the social network graph. As a case study, a virus inoculation game is
examined. We analyze the corresponding Nash equilibria and show that the
Windfall of Friendship can never be negative.
In this paper, we revisit the coalition structure generation problem in which
the goal is to partition the players into exhaustive and disjoint coalitions so
as to maximize the social welfare. One of our key results is a general
polynomial-time algorithm to solve the problem for all monotonic coalitional
games provided that player types are known and the number of player types is
bounded by a constant.
This paper shows that in suitable markets, even with out-of-equilibrium trade
allowed, a simple price update rule leads to rapid convergence toward the
equilibrium. In particular, this paper considers a Fisher market repeated over
an unbounded number of time steps, with the addition of finite sized warehouses
to enable non-equilibrium trade. The main result is that suitable tatonnement
style price updates lead to convergence in a significant subset of markets
satisfying the Weak Gross Substitutes property.
We initiate the study of congestion games with variable demands where the
(variable) demand has to be assigned to exactly one subset of resources. The
players' incentives to use higher demands are stimulated by non-decreasing and
concave utility functions. The payoff for a player is defined as the difference
between the utility of the demand and the associated cost on the used
resources. Although this class of non-cooperative games captures many elements
of real-world applications, it has not been studied in this generality, to our
knowledge, in the past.
This paper studies a class of incentive schemes based on intervention, where
there exists an intervention device that is able to monitor the actions of
users and to take an action that affects the payoffs of users. We consider the
case of perfect monitoring, where the intervention device can immediately
observe the actions of users without errors. We also assume that there exist
actions of the intervention device that are most and least preferred by all the
users and the intervention device, regardless of the actions of users.
We propose an incentive scheme based on intervention to sustain cooperation
among self-interested users. In the proposed scheme, an intervention device
collects imperfect signals about the actions of the users for a test period,
and then chooses the level of intervention that degrades the performance of the
network for the remaining time period. We analyze the problems of designing an
optimal intervention rule given a test period and choosing an optimal length of
the test period.
In this paper new algorithm for calculating power indices is described. The
complexity class of the problem is #P-complete and even calculating power index
of the biggest player is NP-hard task. Constructed algorithm is a mix of ideas
of two algorithms: Klinz & Woeginger partitioning algorithm and Mann & Shapley
generating functions algorithm.
Following Babaioff, Kleinberg, and Slivkins [BKS10], we study single-call
mechanisms --- truthful mechanisms that evaluate an allocation function only
once per instantiation.
This short note exhibits a truthful-in-expectation $O(\frac {\log m} {\log
\log m})$-approximation mechanism for combinatorial auctions with subadditive
bidders that uses polynomial communication.
In this paper we show that when individuals in a bipartite network
exclusively choose partners and exchange valued goods with their partners, then
there exists a set of exchanges that are pair-wise stable. Pair-wise stability
implies that no individual breaks her partnership and no two neighbors in the
network can form a new partnership while breaking other partnerships if any so
that at least one of them improves her payoff and the other one does at least
as good.
Building on ideas from online convex optimization, we propose a general
framework for the design of efficient securities markets over very large
outcome spaces. The challenge here is computational. In a complete market, in
which one security is offered for each outcome, the market institution can not
efficiently keep track of the transaction history or calculate security prices
when the outcome space is large. The natural solution is to restrict the space
of securities to be much smaller than the outcome space in such a way that
securities can be priced efficiently.
We revisit the problem of designing the profit-maximizing single-item
auction, solved by Myerson in his seminal paper for the case in which bidder
valuations are independently distributed. We focus on general joint
distributions, seeking the optimal deterministic incentive compatible auction.
We give a geometric characterization of the optimal auction through a duality
theorem, resulting in an efficient algorithm for finding the optimal
deterministic auction in the two-bidder case and an inapproximability result
for three or more bidders.
We study {\em bottleneck congestion games} where the social cost is
determined by the worst congestion of any resource. These games directly relate
to network routing problems and also job-shop scheduling problems. In typical
bottleneck congestion games, the utility costs of the players are determined by
the worst congested resources that they use. However, the resulting Nash
equilibria are inefficient, since the price of anarchy is proportional on the
number of resources which can be high. Here we show that we can get smaller
price of anarchy with the bottleneck social cost metric.
Given a rank-1 bimatrix game (A,B), i.e., where rank(A+B)=1, we construct a
suitable linear subspace of the rank-1 game space and show that this subspace
is homeomorphic to its Nash equilibrium correspondence. Using this
homeomorphism, we give the first polynomial time algorithm for computing an
exact Nash equilibrium of a rank-1 bimatrix game. In addition, we give a novel
algorithm to enumerate all the Nash equilibria of a rank-1 game and show that a
similar technique may also be applied for finding a Nash equilibrium of any
bimatrix game.
Routing games are used to to understand the impact of individual users'
decisions on network efficiency. Most prior work on routing games uses a
simplified model of network flow where all flow exists simultaneously, and
users care about either their maximum delay or their total delay. Both of these
measures are surrogates for measuring how long it takes to get all of a user's
traffic through the network. We attempt a more direct study of how competition
affects network efficiency by examining routing games in a flow over time
model.
This short note demonstrates how one can define a transformation of a
non-zero sum game into a zero sum, so that the optimal mixed strategy achieving
equilibrium always exists. The transformation is equivalent to introduction of
a passive player into a game (a player with a singleton set of pure
strategies), whose payoff depends on the actions of the active players, and it
is justified by the law of conservation of utility in a game. In a transformed
game, each participant plays against all other players, including the passive
player.
Games on graphs with omega-regular objectives provide a natural model for
reactive systems. In this paper, we consider generalized reachability games:
given k subsets of vertices, the objective is to reach one vertex of each
subset. We show that solving generalized reachability games is PSPACE-complete
in general. In the special case where reachability sets are singletons, the
problem becomes polynomial. The case where reachability sets have size 2 is
still open.
The Prisoner's Dilemma is a simple model that captures the essential
contradiction between individual rationality and global rationality. Although
the single-shot Prisoner's Dilemma is usually viewed simple, in this paper we
categorize it into five types, and then propose a novel scheme to help agents
escape the type-4 Prisoner's Dilemma. The scheme stems from quantum game theory
but is applicable to the macro world immediately.
In Newcomb's paradox you choose to receive either the contents of a
particular closed box, or the contents of both that closed box and another one.
Before you choose though, an antagonist uses a prediction algorithm to deduce
your choice, and fills the two boxes based on that deduction. Newcomb's paradox
is that game theory's expected utility and dominance principles appear to
provide conflicting recommendations for what you should choose.
In the buyback problem, an algorithm observes a sequence of bids and must
decide whether to accept each bid at the moment it arrives, subject to some
constraints on the set of accepted bids. Decisions to reject bids are
irrevocable, whereas decisions to accept bids may be canceled at a cost that is
a fixed fraction of the bid value. Previous to our work, deterministic and
randomized algorithms were known when the constraint is a matroid constraint.
We extend this and give a deterministic algorithm for the case when the
constraint is an intersection of $k$ matroid constraints.
Considering the interaction through mutual interference of the different
radio devices, the channel selection (CS) problem in decentralized parallel
multiple access channels can be modeled by strategic-form games. Here, we show
that the CS problem is a potential game (PG) and thus the fictitious play (FP)
converges to a Nash equilibrium (NE) either in pure or mixed strategies.
We investigate the extent to which price updates can increase the revenue of
a seller with little prior information on demand. We study prior-free revenue
maximization for a seller with unlimited supply of n item types facing m myopic
buyers present for k < log n days. For the static (k = 1) case, Balcan et al.
[2] show that one random item price (the same on each item) yields revenue
within a \Theta(log m + log n) factor of optimum and this factor is tight.
We present a formal model for studying fashion trends, in terms of three
parameters of fashionable items: (1) their innate utility; (2) individual
boredom associated with repeated usage of an item; and (3) social influences
associated with the preferences from other people. While there are several
works that emphasize the effect of social influence in understanding fashion
trends, in this paper we show how boredom plays a strong role in both
individual and social choices.
MiBoard (Multiplayer Interactive Board Game) is an online, turnbased board
game that was developed to assess the integration of game characteristics
(point rewards, game-like interaction, and peer feedback) and how that might
affect student engagement and learning efficacy. This online board game was
designed to fit within the Extended Practice module of iSTART (Interactive
Strategy Training for Active Reading and Thinking).
Increasing user engagement is constant challenge for Intelligent Tutoring
Systems researchers. A current trend in the ITS field is to increase engagement
of proven learning systems by integrating them within games, or adding in game
like components. Incorporating proven learning methods within a game based
environment is expected to add to the overall experience without detracting
from the original goals, however, the current study demonstrates two important
issues with regard to ITS design. First, effective designs from the physical
world do not always translate into the digital world.
MiBoard (Multiplayer Interactive Board Game) is an online, turn-based board
game, which is a supplement of the iSTART (Interactive Strategy Training for
Active Reading and Thinking) application. MiBoard is developed to test the
hypothesis that integrating game characteristics (point rewards, game-like
interaction, and peer feedback) into the iSTART trainer will significantly
improve its effectiveness on students' learning. It was shown by M. Rowe that a
physical board game did in fact enhance students' performance.
MiBoard (Multiplayer Interactive Board Game) is an online, turn-based board
game, which is a supplement of the iSTART (Interactive Strategy Training for
Active Reading and Thinking) application. MiBoard is developed to test the
hypothesis that integrating game characteristics (point rewards, game-like
interaction, and peer feedback) into the iSTART trainer will significantly
improve its effectiveness on students' learning. It was shown by M. Rowe that a
physical board game did in fact enhance students' performance.
Mechanisms such as auctions and pricing schemes are utilized to design
strategic (noncooperative) games for networked systems. Although the
participating players are selfish, these mechanisms ensure that the game
outcome is optimal with respect to a global criterion (e.g. maximizing a social
welfare function), preference-compatible, and strategy-proof, i.e. players have
no reason to deceive the designer. The mechanism designer achieves these
objectives by introducing specific rules and incentives to the players; in this
case by adding resource prices to their utilities.
In this paper, inspired by the work of Megiddo on the formation of
preferences and strategic analysis, we consider an early market model studied
in the field of economic theory, in which each trader's utility may be
influenced by the bundles of goods obtained by her social neighbors. The goal
of this paper is to understand and characterize the impact of social influence
on the complexity of computing and approximating market equilibria.
The main idea of the {\em distance rationalizability} approach to view the
voters' preferences as an imperfect approximation to some kind of consensus is
deeply rooted in social choice literature. It allows one to define
("rationalize") voting rules via a consensus class of elections and a distance:
a candidate is said to be an election winner if she is ranked first in one of
the nearest (with respect to the given distance) consensus elections. It is
known that many classic voting rules can be distance rationalized.
In WiFi networks, mobile nodes compete for accessing a shared channel by
means of a random access protocol called Distributed Coordination Function
(DCF). Although this protocol is in principle fair, since all the stations have
the same probability to transmit on the channel, it has been shown that unfair
behaviors may emerge in actual networking scenarios because of non-standard
configurations of the nodes.
Much of the literature on rational cryptography focuses on analyzing the
strategic properties of cryptographic protocols. However, due to the presence
of computationally-bounded players and the asymptotic nature of cryptographic
security, a definition of sequential rationality for this setting has thus far
eluded researchers.
For revenue maximization in single-dimensional Bayesian settings, Chawla et
al. STOC10 [CHMS10] recently showed that sequential posted-price mechanisms
(SPMs), though simple in form, can perform surprisingly well compared to
Myerson's optimal mechanism. In this paper, we show that what underlies SPMs'
good performance is certain submodularity of auctions, and the small
correlation gap of submodular functions.
Finding approximate Nash equilibria in n x n bimatrix games is currently one
of the main open problems in algorithmic game theory. Motivated in part by the
lack of progress on worst case instances, Awasthi et. al [2] recently proposed
the question of finding approximate Nash equilibria in games that satisfy a
natural (epsilon, Delta) stability to approximation condition. This condition
states that all epsilon approximate equilibria are contained inside a small
ball of radius Delta around a true equilibrium. Awasthi et.
We design algorithms for computing approximately revenue-maximizing {\em
sequential posted-pricing mechanisms (SPM)} in $K$-unit auctions, in a standard
Bayesian model. A seller has $K$ copies of an item to sell, and there are $n$
buyers, each interested in only one copy, who have some value for the item. The
seller must post a price for each buyer, the buyers arrive in a sequence
enforced by the seller, and a buyer buys the item if its value exceeds the
price posted to it. The seller does not know the values of the buyers, but have
Bayesian information about them.
In this article we briefly present our contributions toward Trading Agent
Competition (TAC); an international forum for promotion of research into the
trading agent problems. Moreover, we present some strategies proposed and used
in the development of our TAC Agent and resultant brief information after its
participation in a real time trading environment. In the end we conclude with
needed improvements and future recommendations.
A longstanding idea in the literature on human cooperation is that
cooperation should be reinforced when conditional cooperators are more likely
to interact. In the context of social networks, this idea implies that
cooperation should fare better in highly clustered networks such as cliques
than in networks with low clustering such as random networks.
We present computational results concerning stable partitions in additively
separable hedonic games. First, we propose a polynomial-time algorithm to
compute a contractually individually stable partition. This contrasts with
previous results such as NP-hardness of computing individually stable or Nash
stable partitions. Secondly, we prove that checking whether the core or the
strict core exists is NP-hard in the strong sense even if the preferences of
the players are symmetric.
We study the properties of Braess's paradox in the context of the model of
congestion games with flow over time introduced by Koch and Skutella. We
compare them to the well known properties of Braess's paradox for Wardrop's
model of games with static flows. We show that there are networks which do not
admit Braess's paradox in Wardrop's model, but which admit it in the model with
flow over time. Moreover, there is a topology that admits a much more severe
Braess's ratio for this model.
The problem of arriving at a principled method of pricing goods and services
was very satisfactorily solved for conventional goods; however, this solution
is not applicable to digital goods. After taking into consideration
idiosyncrasies of the digital realm, we give a market model that is appropriate
for the digital setting, and a notion of equilibrium for it. We also prove
existence of equilibrium for our market model.
We present a direct reduction from k-player games to 2-player games that
preserves approximate Nash equilibrium. Previously, the computational
equivalence of computing approximate Nash equilibrium in k-player and 2-player
games was established via an indirect reduction. This included a sequence of
works defining the complexity class PPAD, identifying complete problems for
this class, showing that computing approximate Nash equilibrium for k-player
games is in PPAD, and reducing a PPAD-complete problem to computing approximate
Nash equilibrium for 2-player games.
Budget feasible mechanisms, recently initiated by Singer (FOCS 2010), extend
algorithmic mechanism design problems to a realistic setting with a budget
constraint. We consider the problem of designing truthful budget feasible
mechanisms for general submodular functions: we give a randomized mechanism
with approximation ratio $7.91$ (improving the previous best-known result 112),
and a deterministic mechanism with approximation ratio $8.34$.
We consider the problem of designing truthful auctions, when the bidders'
valuations have a public and a private component. In particular, we consider
combinatorial auctions where the valuation of an agent $i$ for a set $S$ of
items can be expressed as $v_if(S)$, where $v_i$ is a private single parameter
of the agent, and the function $f$ is publicly known. Our motivation behind
studying this problem is two-fold: (a) Such valuation functions arise naturally
in the case of ad-slots in broadcast media such as Television and Radio.
This is a rather informal note, discussing a deterministic time symmetric
(for black and white players) version of the classical game Go. The Ko and Komi
rules are removed, and two other natural rules added. The main idea is somewhat
inspired by quantum mechanics.
Capacitated Caching (CC) Games are motivated by P2P and web caching
applications, and involve nodes on a network making strategic choices regarding
the content to replicate in their caches. Caching games were introduced by Chun
et al (PODC 2004), who analyzed the uncapacitated case leaving the capacitated
version as an open direction.
We study the revenue maximization problem in selling a digital product in a
social network where social influence affects agents' purchasing decisions. The
utility of each agent consists of two parts: her intrinsic value on the
product, and the linearly additive influence from other agents in the network.
We consider the simultaneous-move game where all agents make decisions
simultaneously.
Classic decision-theory is based on the maximum expected utility (MEU)
principle, but crucially ignores the resource costs incurred when determining
optimal decisions. Here we propose an axiomatic framework for bounded
decision-making that considers resource costs. Agents are formalized as
probability measures over input-output streams. We postulate that any such
probability measure can be assigned a corresponding conjugate utility function
based on three axioms: utilities should be real-valued, additive and monotonic
mappings of probabilities.
Credit networks represent a way of modeling trust between entities in a
network. Nodes in the network print their own currency and trust each other for
a certain amount of each other's currency. This allows the network to serve as
a decentralized payment infrastructure---arbitrary payments can be routed
through the network by passing IOUs between trusting nodes in their respective
currencies---and obviates the need for a common currency. Nodes can repeatedly
transact with each other and pay for the transaction using trusted currency.
Simulation and bisimulation metrics for stochastic systems provide a
quantitative generalization of the classical simulation and bisimulation
relations. These metrics capture the similarity of states with respect to
quantitative specifications written in the quantitative {\mu}-calculus and
related probabilistic logics. We first show that the metrics provide a bound
for the difference in long-run average and discounted average behavior across
states, indicating that the metrics can be used both in system verification,
and in performance evaluation.
We consider two-player games played on finite colored graphs where the goal
is the construction of an infinite path with one of the following
frequency-related properties: (i) all colors occur with the same asymptotic
frequency, (ii) there is a constant that bounds the difference between the
occurrences of any two colors for all prefixes of the path, or (iii) all colors
occur with a fixed asymptotic frequency.
Wireless Sensor Networks (WSN) support data collection and distributed data
processing by means of very small sensing devices that are easy to tamper and
cloning: therefore classical security solutions based on access control and
strong authentication are difficult to deploy. In this paper we look at the
problem of assessing security of node localization.
In the context of strategic games, we provide an axiomatic proof of the
statement Common knowledge of rationality implies that the players will choose
only strategies that survive the iterated elimination of strictly dominated
strategies. Rationality here means playing only strategies one believes to be
best responses. This involves looking at two formal languages. One is
first-order, and is used to formalise optimality conditions, like avoiding
strictly dominated strategies, or playing a best response.
We consider a market with a set of unit demand buyers and a set of
heterogeneous goods. We assume that the utility of each buyer $i$ from a good
$j$ can be any arbitrary but continuous and decreasing function of price of $j$
and is not necessarily quasi-linear (note that we can model any \emph{smooth
budget constraint} in this form). We give a constructive proof for the
existence of Walrasian equilibria and show that set of Walrasian equilibria
form a complete lattice.
In games with a large number of players where players may have overlapping
objectives, the analysis of stable outcomes typically depends on player types.
A special case is when a large part of the player population consists of
imitation types: that of players who imitate choice of other (optimizing)
types. Game theorists typically study the evolution of such games in dynamical
systems with imitation rules. In the setting of games of infinite duration on
finite graphs with preference orderings on outcomes for player types, we
explore the possibility of imitation as a viable strategy.
Calibrated strategies can be obtained by performing strategies that have no
internal regret in some auxiliary game. Such strategies can be constructed
explicitly with the use of Blackwell's approachability theorem, in an other
auxiliary game. We establish the converse: a strategy that approaches a convex
$B$-set can be derived from the construction of a calibrated strategy.
This volume contains the Proceedings of the first Symposium on "Games,
Automata, Logic, and Formal Verification (GandALF)", held in Minori (Amalfi
coast), Italy, 17-18 June 2010. The symposium has been promoted by a number of
Italian computer scientists interested in game theory, mathematical logic,
automata theory, and their applications to the specification, design, and
verification of complex systems. It covers a large spectrum of research topics,
ranging from theoretical aspects to concrete applications.
The solution of parity games over pushdown graphs (Walukiewicz '96) was the
first step towards an effective theory of infinite-state games. It was shown
that winning strategies for pushdown games can be implemented again as pushdown
automata. We continue this study and investigate the connection between game
presentations and winning strategies in altogether six cases of game arenas,
among them realtime pushdown systems, visibly pushdown systems, and counter
systems.
We study the behavior of Range Voting and Normalized Range Voting with
respect to electoral control. Electoral control encompasses attempts from an
election chair to alter the structure of an election in order to change the
outcome. We show that a voting system resists a case of control by proving that
performing that case of control is computationally infeasible.
A Nash equilibrium has become important solution concept for analyzing the
decision making in Game theory. In this paper, we consider the problem of
computing Nash equilibria of a subclass of generic finite normal form games. We
define "rational payoff irrational equilibria games" to be the games with all
rational payoffs and all irrational equilibria. We present a purely algebraic
method for computing all Nash equilibria of these games that uses knowledge of
Galois groups.