Fairness with an Honest Minority and a Rational Majority

We provide a simple protocol for secret reconstruction in any threshold secret sharing scheme, and prove that it is fair when executed with many rational parties together with a small minority of honest parties. That is, all parties will learn the secret with high probability when the honest parties follow the protocol and the rational parties act in their own self-interest (as captured by a set-Nash analogue of trembling hand perfect equilibrium). The protocol only requires a standard (synchronous) broadcast channel, tolerates both early stopping and incorrectly computed messages, and only requires 2 rounds of communication. Previous protocols for this problem in the cryptographic or economic models have either required an honest majority, used strong communication channels that enable simultaneous exchange of information, or settled for approximate notions of security/equilibria. They all also required a nonconstant number of rounds of communication.Engineering and Applied Science

Crowdsourcing atop blockchains

Traditional crowdsourcing systems, such as Amazon\u27s Mechanical Turk (MTurk), though once acquiring great economic successes, have to fully rely on third-party platforms to serve between the requesters and the workers for basic utilities. These third-parties have to be fully trusted to assist payments, resolve disputes, protect data privacy, manage user authentications, maintain service online, etc. Nevertheless, tremendous real-world incidents indicate how elusive it is to completely trust these platforms in reality, and the reduction of such over-reliance becomes desirable. In contrast to the arguably vulnerable centralized approaches, a public blockchain is a distributed and transparent global consensus computer that is highly robust. The blockchain is usually managed and replicated by a large-scale peer-to-peer network collectively, thus being much more robust to be fully trusted for correctness and availability. It, therefore, becomes enticing to build novel crowdsourcing applications atop blockchains to reduce the over-trust on third-party platforms. However, this new fascinating technology also brings about new challenges, which were never that severe in the conventional centralized setting. The most serious issue is that the blockchain is usually maintained in the public Internet environment with a broader attack surface open to anyone. This not only causes serious privacy and security issues, but also allows the adversaries to exploit the attack surface to hamper more basic utilities. Worse still, most existing blockchains support only light on-chain computations, and the smart contract executed atop the decentralized consensus computer must be simple, which incurs serious feasibility problems. In reality, the privacy/security issue and the feasibility problem even restrain each other and create serious tensions to hinder the broader adoption of blockchain. The dissertation goes through the non-trivial challenges to realize secure yet still practical decentralization (for urgent crowdsourcing use-cases), and lay down the foundation for this line of research. In sum, it makes the next major contributions. First, it identifies the needed security requirements in decentralized knowledge crowdsourcing (e.g., data privacy), and initiates the research of private decentralized crowdsourcing. In particular, the confidentiality of solicited data is indispensable to prevent free-riders from pirating the others\u27 submissions, thus ensuring the quality of solicited knowledge. To this end, a generic private decentralized crowdsourcing framework is dedicatedly designed, analyzed, and implemented. Furthermore, this dissertation leverages concretely efficient cryptographic design to reduce the cost of the above generic framework. It focuses on decentralizing the special use-case of Amazon MTurk, and conducts multiple specific-purpose optimizations to remove needless generality to squeeze performance. The implementation atop Ethereum demonstrates a handling cost even lower than MTurk. In addition, it focuses on decentralized crowdsourcing of computing power for specific machine learning tasks. It lets a requester place deposits in the blockchain to recruit some workers for a designated (randomized) programs. If and only if these workers contribute their resources to compute correctly, they would earn well-deserved payments. For these goals, a simple yet still useful incentive mechanism is developed atop the blockchain to deter rational workers from cheating. Finally, the research initiates the first systematic study on crowdsourcing blockchains\u27 full nodes to assist superlight clients (e.g., mobile phones and IoT devices) to read the blockchain\u27s records. This dissertation presents a novel generic solution through the powerful lens of game-theoretic treatments, which solves the long-standing open problem of designing generic superlight clients for all blockchains

Rational Multiparty Computation

The field of rational cryptography considers the design of cryptographic protocols in the presence of rational agents seeking to maximize local utility functions. This departs from the standard secure multiparty computation setting, where players are assumed to be either honest or malicious. ^ We detail the construction of both a two-party and a multiparty game theoretic framework for constructing rational cryptographic protocols. Our framework specifies the utility function assumptions necessary to realize the privacy, correctness, and fairness guarantees for protocols. We demonstrate that our framework correctly models cryptographic protocols, such as rational secret sharing, where existing work considers equilibrium concepts that yield unreasonable equilibria. Similarly, we demonstrate that cryptography may be applied to the game theoretic domain, constructing an auction market not realizable in the original formulation. Additionally, we demonstrate that modeling players as rational agents allows us to design a protocol that destabilizes coalitions. Thus, we establish a mutual benefit from combining the two fields, while demonstrating the applicability of our framework to real-world market environments.^ We also give an application of game theory to adversarial interactions where cryptography is not necessary. Specifically, we consider adversarial machine learning, where the adversary is rational and reacts to the presence of a data miner. We give a general extension to classification algorithms that returns greater expected utility for the data miner than existing classification methods

Lab Labor: What Can Labor Economists Learn from the Lab?

This paper surveys the contributions of laboratory experiments to labor economics. We begin with a discussion of methodological issues: why (and when) is a lab experiment the best approach; how do laboratory experiments compare to field experiments; and what are the main design issues? We then summarize the substantive contributions of laboratory experiments to our understanding of principal-agent interactions, social preferences, union-firm bargaining, arbitration, gender differentials, discrimination, job search, and labor markets more generally.personnel economics, principal-agent theory, laboratory experiments, labor economics

Applications of negotiation theory to water issues

The purpose of the paper is to review the applications of non-cooperative bargaining theory to water related issues – which fall in the category of formal models of negotiation. The ultimate aim is that of, on the one hand, identify the conditions under which agreements are likely to emerge, and their characteristics; and, on the other hand, to support policy makers in devising the “rules of the game” that could help obtain a desired result. Despite the fact that allocation of natural resources, especially of trans-boundary nature, has all the characteristics of a negotiation problem, there are not many applications of formal negotiation theory to the issue. Therefore, this paper first discusses the noncooperative bargaining models applied to water allocation problems found in the literature. Particular attention will be given to those directly modelling the process of negotiation, although some attempts at finding strategies to maintain the efficient allocation solution will also be illustrated. In addition, this paper will focus on Negotiation Support Systems (NSS), developed to support the process of negotiation. This field of research is still relatively new, however, and NSS have not yet found much use in real life negotiation. The paper will conclude by highlighting the key remaining gaps in the literature.Negotiation theory, Bragaining, Coalitions, Fairness, Agreements

Applications of negotiation theory to water issues

The authors review the applications of noncooperative bargaining theory to waterrelated issues-which fall in the category of formal models of negotiation. They aim to identify the conditions under which agreements are likely to emerge and their characteristics, to support policymakers in devising the"rules of the game"that could help obtain a desired result. Despite the fact that allocation of natural resources, especially trans-boundary allocation, has all the characteristics of a negotiation problem, there are not many applications of formal negotiation theory to the issue. Therefore, the authors first discuss the noncooperative bargaining models applied to water allocation problems found in the literature. Key findings include the important role noncooperative negotiations can play in cases where binding agreements cannot be signed; the value added of politically and socially acceptable compromises; and the need for a negotiated model that considers incomplete information over the negotiated resource.Water Supply and Sanitation Governance and Institutions,Town Water Supply and Sanitation,Water and Industry,Environmental Economics&Policies,Water Conservation

An Evolutionary Learning Approach for Adaptive Negotiation Agents

Developing effective and efficient negotiation mechanisms for real-world applications such as e-Business is challenging since negotiations in such a context are characterised by combinatorially complex negotiation spaces, tough deadlines, very limited information about the opponents, and volatile negotiator preferences. Accordingly, practical negotiation systems should be empowered by effective learning mechanisms to acquire dynamic domain knowledge from the possibly changing negotiation contexts. This paper illustrates our adaptive negotiation agents which are underpinned by robust evolutionary learning mechanisms to deal with complex and dynamic negotiation contexts. Our experimental results show that GA-based adaptive negotiation agents outperform a theoretically optimal negotiation mechanism which guarantees Pareto optimal. Our research work opens the door to the development of practical negotiation systems for real-world applications

Applications of Negotiation Theory to Water Issues

The purpose of the paper is to review the applications of non-cooperative bargaining theory to water related issues – which fall in the category of formal models of negotiation. The ultimate aim is that to, on the one hand, identify the conditions under which agreements are likely to emerge, and their characteristics; and, on the other hand, to support policy makers in devising the “rules of the game” that could help obtain a desired result. Despite the fact that allocation of natural resources, especially of trans-boundary nature, has all the characteristics of a negotiation problem, there are not many applications of formal negotiation theory to the issue. Therefore, this paper first discusses the non-cooperative bargaining models applied to water allocation problems found in the literature. Particular attention will be given to those directly modelling the process of negotiation, although some attempts at finding strategies to maintain the efficient allocation solution will also be illustrated. In addition, this paper will focus on Negotiation Support Systems (NSS), developed to support the process of negotiation. This field of research is still relatively new, however, and NSS have not yet found much use in real life negotiation. The paper will conclude by highlighting the key remaining gaps in the literature.Negotiation theory, Water, Agreeements, Stochasticity, Stakeholders