3,230 research outputs found
Bayesian games with a continuum of states
We show that every Bayesian game with purely atomic
types has a measurable Bayesian equilibrium when the common knowl-
edge relation is smooth. Conversely, for any common knowledge rela-
tion that is not smooth, there exists a type space that yields this common
knowledge relation and payoffs such that the resulting Bayesian game
will not have any Bayesian equilibrium. We show that our smoothness
condition also rules out two paradoxes involving Bayesian games with
a continuum of types: the impossibility of having a common prior on
components when a common prior over the entire state space exists, and
the possibility of interim betting/trade even when no such trade can be
supported
ex ante
Composable and Efficient Mechanisms
We initiate the study of efficient mechanism design with guaranteed good
properties even when players participate in multiple different mechanisms
simultaneously or sequentially. We define the class of smooth mechanisms,
related to smooth games defined by Roughgarden, that can be thought of as
mechanisms that generate approximately market clearing prices. We show that
smooth mechanisms result in high quality outcome in equilibrium both in the
full information setting and in the Bayesian setting with uncertainty about
participants, as well as in learning outcomes. Our main result is to show that
such mechanisms compose well: smoothness locally at each mechanism implies
efficiency globally.
For mechanisms where good performance requires that bidders do not bid above
their value, we identify the notion of a weakly smooth mechanism. Weakly smooth
mechanisms, such as the Vickrey auction, are approximately efficient under the
no-overbidding assumption. Similar to smooth mechanisms, weakly smooth
mechanisms behave well in composition, and have high quality outcome in
equilibrium (assuming no overbidding) both in the full information setting and
in the Bayesian setting, as well as in learning outcomes.
In most of the paper we assume participants have quasi-linear valuations. We
also extend some of our results to settings where participants have budget
constraints
Draft Auctions
We introduce draft auctions, which is a sequential auction format where at
each iteration players bid for the right to buy items at a fixed price. We show
that draft auctions offer an exponential improvement in social welfare at
equilibrium over sequential item auctions where predetermined items are
auctioned at each time step. Specifically, we show that for any subadditive
valuation the social welfare at equilibrium is an -approximation
to the optimal social welfare, where is the number of items. We also
provide tighter approximation results for several subclasses. Our welfare
guarantees hold for Bayes-Nash equilibria and for no-regret learning outcomes,
via the smooth-mechanism framework. Of independent interest, our techniques
show that in a combinatorial auction setting, efficiency guarantees of a
mechanism via smoothness for a very restricted class of cardinality valuations,
extend with a small degradation, to subadditive valuations, the largest
complement-free class of valuations. Variants of draft auctions have been used
in practice and have been experimentally shown to outperform other auctions.
Our results provide a theoretical justification
Price of Anarchy in Bernoulli Congestion Games with Affine Costs
We consider an atomic congestion game in which each player participates in
the game with an exogenous and known probability , independently
of everybody else, or stays out and incurs no cost. We first prove that the
resulting game is potential. Then, we compute the parameterized price of
anarchy to characterize the impact of demand uncertainty on the efficiency of
selfish behavior. It turns out that the price of anarchy as a function of the
maximum participation probability is a nondecreasing
function. The worst case is attained when players have the same participation
probabilities . For the case of affine costs, we provide an
analytic expression for the parameterized price of anarchy as a function of
. This function is continuous on , is equal to for , and increases towards when . Our work can be interpreted as
providing a continuous transition between the price of anarchy of nonatomic and
atomic games, which are the extremes of the price of anarchy function we
characterize. We show that these bounds are tight and are attained on routing
games -- as opposed to general congestion games -- with purely linear costs
(i.e., with no constant terms).Comment: 29 pages, 6 figure
Smoothness for Simultaneous Composition of Mechanisms with Admission
We study social welfare of learning outcomes in mechanisms with admission. In
our repeated game there are bidders and mechanisms, and in each round
each mechanism is available for each bidder only with a certain probability.
Our scenario is an elementary case of simple mechanism design with incomplete
information, where availabilities are bidder types. It captures natural
applications in online markets with limited supply and can be used to model
access of unreliable channels in wireless networks.
If mechanisms satisfy a smoothness guarantee, existing results show that
learning outcomes recover a significant fraction of the optimal social welfare.
These approaches, however, have serious drawbacks in terms of plausibility and
computational complexity. Also, the guarantees apply only when availabilities
are stochastically independent among bidders.
In contrast, we propose an alternative approach where each bidder uses a
single no-regret learning algorithm and applies it in all rounds. This results
in what we call availability-oblivious coarse correlated equilibria. It
exponentially decreases the learning burden, simplifies implementation (e.g.,
as a method for channel access in wireless devices), and thereby addresses some
of the concerns about Bayes-Nash equilibria and learning outcomes in Bayesian
settings. Our main results are general composition theorems for smooth
mechanisms when valuation functions of bidders are lattice-submodular. They
rely on an interesting connection to the notion of correlation gap of
submodular functions over product lattices.Comment: Full version of WINE 2016 pape
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