28,196 research outputs found
Makespan Minimization via Posted Prices
We consider job scheduling settings, with multiple machines, where jobs
arrive online and choose a machine selfishly so as to minimize their cost. Our
objective is the classic makespan minimization objective, which corresponds to
the completion time of the last job to complete. The incentives of the selfish
jobs may lead to poor performance. To reconcile the differing objectives, we
introduce posted machine prices. The selfish job seeks to minimize the sum of
its completion time on the machine and the posted price for the machine. Prices
may be static (i.e., set once and for all before any arrival) or dynamic (i.e.,
change over time), but they are determined only by the past, assuming nothing
about upcoming events. Obviously, such schemes are inherently truthful.
We consider the competitive ratio: the ratio between the makespan achievable
by the pricing scheme and that of the optimal algorithm. We give tight bounds
on the competitive ratio for both dynamic and static pricing schemes for
identical, restricted, related, and unrelated machine settings. Our main result
is a dynamic pricing scheme for related machines that gives a constant
competitive ratio, essentially matching the competitive ratio of online
algorithms for this setting. In contrast, dynamic pricing gives poor
performance for unrelated machines. This lower bound also exhibits a gap
between what can be achieved by pricing versus what can be achieved by online
algorithms
Pricing for Online Resource Allocation: Intervals and Paths
We present pricing mechanisms for several online resource allocation problems
which obtain tight or nearly tight approximations to social welfare. In our
settings, buyers arrive online and purchase bundles of items; buyers' values
for the bundles are drawn from known distributions. This problem is closely
related to the so-called prophet-inequality of Krengel and Sucheston and its
extensions in recent literature. Motivated by applications to cloud economics,
we consider two kinds of buyer preferences. In the first, items correspond to
different units of time at which a resource is available; the items are
arranged in a total order and buyers desire intervals of items. The second
corresponds to bandwidth allocation over a tree network; the items are edges in
the network and buyers desire paths.
Because buyers' preferences have complementarities in the settings we
consider, recent constant-factor approximations via item prices do not apply,
and indeed strong negative results are known. We develop static, anonymous
bundle pricing mechanisms.
For the interval preferences setting, we show that static, anonymous bundle
pricings achieve a sublogarithmic competitive ratio, which is optimal (within
constant factors) over the class of all online allocation algorithms, truthful
or not. For the path preferences setting, we obtain a nearly-tight logarithmic
competitive ratio. Both of these results exhibit an exponential improvement
over item pricings for these settings. Our results extend to settings where the
seller has multiple copies of each item, with the competitive ratio decreasing
linearly with supply. Such a gradual tradeoff between supply and the
competitive ratio for welfare was previously known only for the single item
prophet inequality
Dynamic Pricing Algorithms, Consumer Harm, and Regulatory Response
Pricing algorithms are rapidly transforming markets, from ride-sharing, to air travel, to online retail. Regulators and scholars have watched this development with a wary eye. Their focus so far has been on the potential for pricing algorithms to facilitate explicit and tacit collusion. This Article argues that the policy challenges pricing algorithms pose are far broader than collusive conduct. It demonstrates that algorithmic pricing can lead to higher prices for consumers in competitive markets and even in the absence of collusion. This consumer harm can be initiated by a single firm employing a superior pricing algorithm. Higher prices arise from the automated nature of algorithms, impacting any market where firms price algorithmically. Pricing algorithms that are already in widespread use may allow sellers to extract a massive amount of wealth from consumers. Because this consumer harm arises even when firms do not collude, antitrust law cannot solve the problem. This Article looks to the history of pricing innovation in the early twentieth century to show how government can respond when new pricing technologies and strategies disrupt markets. It argues for pricing regulation as a feasible solution to the challenges non-collusive algorithmic pricing poses, and it proposes interventions targeted at when and how firms set prices
Welfare maximization with production costs: a primal dual approach
CP2: Session 1BWe study online combinatorial auctions with production costs proposed by Blum et al. using the online primal dual framework. In this model, buyers arrive online, and the seller can produce multiple copies of each item subject to a non-decreasing marginal cost per copy. The goal is to allocate items to maximize social welfare less total production cost. For arbitrary (strictly convex and differentiable) production cost functions, we characterize the optimal competitive ratio achievable by online mechanisms/algorithms. We show that online posted pricing mechanisms, which are incentive compatible, can achieve competitive ratios arbitrarily close to the optimal, and construct lower bound instances on which no online algorithms, not necessarily incentive compatible, can do better. Our positive results improve or match the results in several previous work, e.g., Bartal et al., Blum et al., and Buchbinder and Gonen. Our lower bounds apply to randomized algorithms and resolve an open problem by Buchbinder and Gonen.published_or_final_versio
Online Combinatorial Auctions for Resource Allocation with Supply Costs and Capacity Limits
We study a general online combinatorial auction problem in algorithmic
mechanism design. A provider allocates multiple types of capacity-limited
resources to customers that arrive in a sequential and arbitrary manner. Each
customer has a private valuation function on bundles of resources that she can
purchase (e.g., a combination of different resources such as CPU and RAM in
cloud computing). The provider charges payment from customers who purchase a
bundle of resources and incurs an increasing supply cost with respect to the
totality of resources allocated. The goal is to maximize the social welfare,
namely, the total valuation of customers for their purchased bundles, minus the
total supply cost of the provider for all the resources that have been
allocated. We adopt the competitive analysis framework and provide posted-price
mechanisms with optimal competitive ratios. Our pricing mechanism is optimal in
the sense that no other online algorithms can achieve a better competitive
ratio. We validate the theoretic results via empirical studies of online
resource allocation in cloud computing. Our numerical results demonstrate that
the proposed pricing mechanism is competitive and robust against system
uncertainties and outperforms existing benchmarks.Comment: arXiv admin note: text overlap with arXiv:2004.0964
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