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Bayesian Generalized Network Design

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 Added by Yangguang Shi
 Publication date 2019
and research's language is English




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We study network coordination problems, as captured by the setting of generalized network design (Emek et al., STOC 2018), in the face of uncertainty resulting from partial information that the network users hold regarding the actions of their peers. This uncertainty is formalized using Alon et al.s Bayesian ignorance framework (TCS 2012). While the approach of Alon et al. is purely combinatorial, the current paper takes into account computational considerations: Our main technical contribution is the development of (strongly) polynomial time algorithms for local decision making in the face of Bayesian uncertainty.



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The cost-sharing connection game is a variant of routing games on a network. In this model, given a directed graph with edge-costs and edge-capacities, each agent wants to construct a path from a source to a sink with low cost. The cost of each edge is shared by the users based on a cost-sharing function. One of simple cost-sharing functions is defined as the cost divided by the number of users. In fact, most of the previous papers about cost-sharing connection games addressed this cost-sharing function. It models an ideal setting, where no overhead arises when people share things, though it might be quite rare in real life; it is more realistic to consider the setting that the cost paid by an agent is the original cost per the number of the agents plus the overhead. In this paper, we model the more realistic scenario of cost-sharing connection games by generalizing cost-sharing functions. The arguments on the model do not depend on specific cost-sharing functions, and are applicable for a wide class of cost-sharing functions satisfying the following natural properties: they are (1) non-increasing, (2) lower bounded by the original cost per the number of the agents, and (3) upper bounded by the original cost, which enables to represent various scenarios of cost-sharing. We investigate the Price of Anarchy (PoA) and the Price of Stability (PoS) under sum-cost and max-cost criteria with the generalized cost-sharing function. In spite of the generalization, we obtain the same bounds of PoA and PoS as the cost-sharing with no overhead except PoS under sum-cost. Note that these bounds are tight. In the case of sum-cost, the lower bound on PoS increases from $log n$ to $n+1/n-1$ by the generalization, which is also almost tight because the upper bound is $n$.
We consider a ubiquitous scenario in the Internet economy when individual decision-makers (henceforth, agents) both produce and consume information as they make strategic choices in an uncertain environment. This creates a three-way tradeoff between exploration (trying out insufficiently explored alternatives to help others in the future), exploitation (making optimal decisions given the information discovered by other agents), and incentives of the agents (who are myopically interested in exploitation, while preferring the others to explore). We posit a principal who controls the flow of information from agents that came before, and strives to coordinate the agents towards a socially optimal balance between exploration and exploitation, not using any monetary transfers. The goal is to design a recommendation policy for the principal which respects agents incentives and minimizes a suitable notion of regret. We extend prior work in this direction to allow the agents to interact with one another in a shared environment: at each time step, multiple agents arrive to play a Bayesian game, receive recommendations, choose their actions, receive their payoffs, and then leave the game forever. The agents now face two sources of uncertainty: the actions of the other agents and the parameters of the uncertain game environment. Our main contribution is to show that the principal can achieve constant regret when the utilities are deterministic (where the constant depends on the prior distribution, but not on the time horizon), and logarithmic regret when the utilities are stochastic. As a key technical tool, we introduce the concept of explorable actions, the actions which some incentive-compatible policy can recommend with non-zero probability. We show how the principal can identify (and explore) all explorable actions, and use the revealed information to perform optimally.
We pose and study a fundamental algorithmic problem which we term mixture selection, arising as a building block in a number of game-theoretic applications: Given a function $g$ from the $n$-dimensional hypercube to the bounded interval $[-1,1]$, and an $n times m$ matrix $A$ with bounded entries, maximize $g(Ax)$ over $x$ in the $m$-dimensional simplex. This problem arises naturally when one seeks to design a lottery over items for sale in an auction, or craft the posterior beliefs for agents in a Bayesian game through the provision of information (a.k.a. signaling). We present an approximation algorithm for this problem when $g$ simultaneously satisfies two smoothness properties: Lipschitz continuity with respect to the $L^infty$ norm, and noise stability. The latter notion, which we define and cater to our setting, controls the degree to which low-probability errors in the inputs of $g$ can impact its output. When $g$ is both $O(1)$-Lipschitz continuous and $O(1)$-stable, we obtain an (additive) PTAS for mixture selection. We also show that neither assumption suffices by itself for an additive PTAS, and both assumptions together do not suffice for an additive FPTAS. We apply our algorithm to different game-theoretic applications from mechanism design and optimal signaling. We make progress on a number of open problems suggested in prior work by easily reducing them to mixture selection: we resolve an important special case of the small-menu lottery design problem posed by Dughmi, Han, and Nisan; we resolve the problem of revenue-maximizing signaling in Bayesian second-price auctions posed by Emek et al. and Miltersen and Sheffet; we design a quasipolynomial-time approximation scheme for the optimal signaling problem in normal form games suggested by Dughmi; and we design an approximation algorithm for the optimal signaling problem in the voting model of Alonso and C^{a}mara.
We propose a truthful-in-expectation, $(1-1/e)$-approximation mechanism for a strategic variant of the generalized assignment problem (GAP). In GAP, a set of items has to be optimally assigned to a set of bins without exceeding the capacity of any singular bin. In the strategic variant of the problem we study, values for assigning items to bins are the private information of bidders and the mechanism should provide bidders with incentives to truthfully report their values. The approximation ratio of the mechanism is a significant improvement over the approximation ratio of the existing truthful mechanism for GAP. The proposed mechanism comprises a novel convex optimization program as the allocation rule as well as an appropriate payment rule. To implement the convex program in polynomial time, we propose a fractional local search algorithm which approximates the optimal solution within an arbitrarily small error leading to an approximately truthful-in-expectation mechanism. The presented algorithm improves upon the existing optimization algorithms for GAP in terms of simplicity and runtime while the approximation ratio closely matches the best approximation ratio given for GAP when all inputs are publicly known.
We study online pricing algorithms for the Bayesian selection problem with production constraints and its generalization to the laminar matroid Bayesian online selection problem. Consider a firm producing (or receiving) multiple copies of different product types over time. The firm can offer the products to arriving buyers, where each buyer is interested in one product type and has a private valuation drawn independently from a possibly different but known distribution. Our goal is to find an adaptive pricing for serving the buyers that maximizes the expected social-welfare (or revenue) subject to two constraints. First, at any time the total number of sold items of each type is no more than the number of produced items. Second, the total number of sold items does not exceed the total shipping capacity. This problem is a special case of the well-known matroid Bayesian online selection problem studied in [Kleinberg and Weinberg, 2012], when the underlying matroid is laminar. We give the first Polynomial-Time Approximation Scheme (PTAS) for the above problem as well as its generalization to the laminar matroid Bayesian online selection problem when the depth of the laminar family is bounded by a constant. Our approach is based on rounding the solution of a hierarchy of linear programming relaxations that systematically strengthen the commonly used ex-ante linear programming formulation of these problems and approximate the optimum online solution with any degree of accuracy. Our rounding algorithm respects the relaxed constraints of higher-levels of the laminar tree only in expectation, and exploits the negative dependency of the selection rule of lower-levels to achieve the required concentration that guarantees the feasibility with high probability.
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