No Arabic abstract
On-line firms deploy suites of software platforms, where each platform is designed to interact with users during a certain activity, such as browsing, chatting, socializing, emailing, driving, etc. The economic and incentive structure of this exchange, as well as its algorithmic nature, have not been explored to our knowledge. We model this interaction as a Stackelberg game between a Designer and one or more Agents. We model an Agent as a Markov chain whose states are activities; we assume that the Agents utility is a linear function of the steady-state distribution of this chain. The Designer may design a platform for each of these activities/states; if a platform is adopted by the Agent, the transition probabilities of the Markov chain are affected, and so is the objective of the Agent. The Designers utility is a linear function of the steady state probabilities of the accessible states minus the development cost of the platforms. The underlying optimization problem of the Agent -- how to choose the states for which to adopt the platform -- is an MDP. If this MDP has a simple yet plausible structure (the transition probabilities from one state to another only depend on the target state and the recurrent probability of the current state) the Agents problem can be solved by a greedy algorithm. The Designers optimization problem (designing a custom suite for the Agent so as to optimize, through the Agents optimum reaction, the Designers revenue), is NP-hard to approximate within any finite ratio; however, the special case, while still NP-hard, has an FPTAS. These results generalize from a single Agent to a distribution of Agents with finite support, as well as to the setting where the Designer must find the best response to the existing strategies of other Designers. We discuss other implications of our results and directions of future research.
We describe a structured system for distributed mechanism design. It consists of a sequence of layers. The lower layers deal with the operations relevant for distributed computing only, while the upper layers are concerned only with communication among players, including broadcasting and multicasting, and distributed decision making. This yields a highly flexible distributed system whose specific applications are realized as instances of its top layer. This design supports fault-tolerance, prevents manipulations and makes it possible to implement distributed policing. The system is implemented in Java. We illustrate it by discussing a number of implemented examples.
The Possible-Winner problem asks, given an election where the voters preferences over the set of candidates is partially specified, whether a distinguished candidate can become a winner. In this work, we consider the computational complexity of Possible-Winner under the assumption that the voter preferences are $partitioned$. That is, we assume that every voter provides a complete order over sets of incomparable candidates (e.g., candidates are ranked by their level of education). We consider elections with partitioned profiles over positional scoring rules, with an unbounded number of candidates, and unweighted voters. Our first result is a polynomial time algorithm for voting rules with $2$ distinct values, which include the well-known $k$-approval voting rule. We then go on to prove NP-hardness for a class of rules that contain all voting rules that produce scoring vectors with at least $4$ distinct values.
We provide a polynomial time reduction from Bayesian incentive compatible mechanism design to Bayesian algorithm design for welfare maximization problems. Unlike prior results, our reduction achieves exact incentive compatibility for problems with multi-dimensional and continuous type spaces. The key technical barrier preventing exact incentive compatibility in prior black-box reductions is that repairing violations of incentive constraints requires understanding the distribution of the mechanisms output, which is typically #P-hard to compute. Reductions that instead estimate the output distribution by sampling inevitably suffer from sampling error, which typically precludes exact incentive compatibility. We overcome this barrier by employing and generalizing the computational model in the literature on $textit{Bernoulli factories}$. In a Bernoulli factory problem, one is given a function mapping the bias of an input coin to that of an output coin, and the challenge is to efficiently simulate the output coin given only sample access to the input coin. This is the key ingredient in designing an incentive compatible mechanism for bipartite matching, which can be used to make the approximately incentive compatible reduction of Hartline et al. (2015) exactly incentive compatible.
In this paper, we study a problem of truthful mechanism design for a strategic variant of the generalized assignment problem (GAP) in a both payment-free and prior-free environment. 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, bins are held by strategic agents, and each agent may hide its compatibility with some items in order to obtain items of higher values. The compatibility between an agent and an item encodes the willingness of the agent to receive the item. Our goal is to maximize total value (sum of agents values, or social welfare) while certifying no agent can benefit from hiding its compatibility with items. The model has applications in auctions with budgeted bidders. For two variants of the problem, namely emph{multiple knapsack problem} in which each item has the same size and value over bins, and emph{density-invariant GAP} in which each item has the same value density over the bins, we propose truthful $4$-approximation algorithms. For the general problem, we propose an $O(ln{(U/L)})$-approximation mechanism where $U$ and $L$ are the upper and lower bounds for value densities of the compatible item-bin pairs.
In a stable matching setting, we consider a query model that allows for an interactive learning algorithm to make precisely one type of query: proposing a matching, the response to which is either that the proposed matching is stable, or a blocking pair (chosen adversarially) indicating that this matching is unstable. For one-to-one matching markets, our main result is an essentially tight upper bound of $O(n^2log n)$ on the deterministic query complexity of interactively learning a stable matching in this coarse query model, along with an efficient randomized algorithm that achieves this query complexity with high probability. For many-to-many matching markets in which participants have responsive preferences, we first give an interactive learning algorithm whose query complexity and running time are polynomial in the size of the market if the maximum quota of each agent is bounded; our main result for many-to-many markets is that the deterministic query complexity can be made polynomial (more specifically, $O(n^3 log n)$) in the size of the market even for arbitrary (e.g., linear in the market size) quotas.