Reducing Revenue to Welfare Maximization: Approximation Algorithms and other Generalizations

It was recently shown in [http://arxiv.org/abs/1207.5518] that revenue optimization can be computationally efficiently reduced to welfare optimization in all multi-dimensional Bayesian auction problems with arbitrary (possibly combinatorial) feasibility constraints and independent additive bidders with arbitrary (possibly combinatorial) demand constraints. This reduction provides a poly-time solution to the optimal mechanism design problem in all auction settings where welfare optimization can be solved efficiently, but it is fragile to approximation and cannot provide solutions to settings where welfare maximization can only be tractably approximated. In this paper, we extend the reduction to accommodate approximation algorithms, providing an approximation preserving reduction from (truthful) revenue maximization to (not necessarily truthful) welfare maximization. The mechanisms output by our reduction choose allocations via black-box calls to welfare approximation on randomly selected inputs, thereby generalizing also our earlier structural results on optimal multi-dimensional mechanisms to approximately optimal mechanisms. Unlike [http://arxiv.org/abs/1207.5518], our results here are obtained through novel uses of the Ellipsoid algorithm and other optimization techniques over {\em non-convex regions}

Dynamic Server Allocation over Time Varying Channels with Switchover Delay

We consider a dynamic server allocation problem over parallel queues with randomly varying connectivity and server switchover delay between the queues. At each time slot the server decides either to stay with the current queue or switch to another queue based on the current connectivity and the queue length information. Switchover delay occurs in many telecommunications applications and is a new modeling component of this problem that has not been previously addressed. We show that the simultaneous presence of randomly varying connectivity and switchover delay changes the system stability region and the structure of optimal policies. In the first part of the paper, we consider a system of two parallel queues, and develop a novel approach to explicitly characterize the stability region of the system using state-action frequencies which are stationary solutions to a Markov Decision Process (MDP) formulation. We then develop a frame-based dynamic control (FBDC) policy, based on the state-action frequencies, and show that it is throughput-optimal asymptotically in the frame length. The FBDC policy is applicable to a broad class of network control systems and provides a new framework for developing throughput-optimal network control policies using state-action frequencies. Furthermore, we develop simple Myopic policies that provably achieve more than 90% of the stability region. In the second part of the paper, we extend our results to systems with an arbitrary but finite number of queues.Comment: 38 Pages, 18 figures. arXiv admin note: substantial text overlap with arXiv:1008.234

Slow Adaptive OFDMA Systems Through Chance Constrained Programming

Adaptive OFDMA has recently been recognized as a promising technique for providing high spectral efficiency in future broadband wireless systems. The research over the last decade on adaptive OFDMA systems has focused on adapting the allocation of radio resources, such as subcarriers and power, to the instantaneous channel conditions of all users. However, such "fast" adaptation requires high computational complexity and excessive signaling overhead. This hinders the deployment of adaptive OFDMA systems worldwide. This paper proposes a slow adaptive OFDMA scheme, in which the subcarrier allocation is updated on a much slower timescale than that of the fluctuation of instantaneous channel conditions. Meanwhile, the data rate requirements of individual users are accommodated on the fast timescale with high probability, thereby meeting the requirements except occasional outage. Such an objective has a natural chance constrained programming formulation, which is known to be intractable. To circumvent this difficulty, we formulate safe tractable constraints for the problem based on recent advances in chance constrained programming. We then develop a polynomial-time algorithm for computing an optimal solution to the reformulated problem. Our results show that the proposed slow adaptation scheme drastically reduces both computational cost and control signaling overhead when compared with the conventional fast adaptive OFDMA. Our work can be viewed as an initial attempt to apply the chance constrained programming methodology to wireless system designs. Given that most wireless systems can tolerate an occasional dip in the quality of service, we hope that the proposed methodology will find further applications in wireless communications