Distributed Implementations of Vickrey-Clarke-Groves Mechanisms

Mechanism design (MD) provides a useful method to implement outcomes with desirable properties in systems with self-interested computational agents. One drawback, however, is that computation is implicitly centralized in MD theory, with a central planner taking all decisions.We consider distributed implementations, in which the outcome is determined by the self-interested agents themselves. Clearly this introduces new opportunities for manipulation.We propose a number of principles to guide the distribution of computation, focusing in particular on Vickrey-Clarke-Groves mechanisms for implementing outcomes that maximize total value across agents. Our solutions bring the complete implementation into an ex post Nash equilibrium.Engineering and Applied Science

A System for Distributed Mechanisms: Design, Implementation and Applications

We describe here a structured system for distributed mechanism design appropriate for both Intranet and Internet applications. In our approach the players dynamically form a network in which they know neither their neighbours nor the size of the network and interact to jointly take decisions. The only assumption concerning the underlying communication layer is that for each pair of processes there is a path of neighbours connecting them. This allows us to deal with arbitrary network topologies. We also discuss the implementation of this system which consists of a sequence of layers. The lower layers deal with the operations that implement the basic primitives of distributed computing, namely low level communication and distributed termination, while the upper layers use these primitives to implement high level 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 is implemented in Java. The system supports at various levels fault-tolerance and includes a provision for distributed policing the purpose of which is to exclude `dishonest' players. Also, it can be used for repeated creation of dynamically formed networks of players interested in a joint decision making implemented by means of a tax-based mechanism. We illustrate its flexibility by discussing a number of implemented examples.Comment: 36 pages; revised and expanded versio

A Faithful Distributed Implementation of Dual Decomposition and Average Consensus Algorithms

We consider large scale cost allocation problems and consensus seeking problems for multiple agents, in which agents are suggested to collaborate in a distributed algorithm to find a solution. If agents are strategic to minimize their own individual cost rather than the global social cost, they are endowed with an incentive not to follow the intended algorithm, unless the tax/subsidy mechanism is carefully designed. Inspired by the classical Vickrey-Clarke-Groves mechanism and more recent algorithmic mechanism design theory, we propose a tax mechanism that incentivises agents to faithfully implement the intended algorithm. In particular, a new notion of asymptotic incentive compatibility is introduced to characterize a desirable property of such class of mechanisms. The proposed class of tax mechanisms provides a sequence of mechanisms that gives agents a diminishing incentive to deviate from suggested algorithm.Comment: 8 page

A Distributed Platform for Mechanism Design

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.Comment: 6 pages. To appear in the Proc. of International Conference on Computational Intelligence for Modelling, Control and Automation, IEEE Societ

K-Implementation

This paper discusses an interested party who wishes to influence the behavior of agents in a game (multi-agent interaction), which is not under his control. The interested party cannot design a new game, cannot enforce agents' behavior, cannot enforce payments by the agents, and cannot prohibit strategies available to the agents. However, he can influence the outcome of the game by committing to non-negative monetary transfers for the different strategy profiles that may be selected by the agents. The interested party assumes that agents are rational in the commonly agreed sense that they do not use dominated strategies. Hence, a certain subset of outcomes is implemented in a given game if by adding non-negative payments, rational players will necessarily produce an outcome in this subset. Obviously, by making sufficiently big payments one can implement any desirable outcome. The question is what is the cost of implementation? In this paper we introduce the notion of k-implementation of a desired set of strategy profiles, where k stands for the amount of payment that need to be actually made in order to implement desirable outcomes. A major point in k-implementation is that monetary offers need not necessarily materialize when following desired behaviors. We define and study k-implementation in the contexts of games with complete and incomplete information. In the latter case we mainly focus on the VCG games. Our setting is later extended to deal with mixed strategies using correlation devices. Together, the paper introduces and studies the implementation of desirable outcomes by a reliable party who cannot modify game rules (i.e. provide protocols), complementing previous work in mechanism design, while making it more applicable to many realistic CS settings

Computational Mechanism Design: A Call to Arms

Game theory has developed powerful tools for analyzing decision making in systems with multiple autonomous actors. These tools, when tailored to computational settings, provide a foundation for building multiagent software systems. This tailoring gives rise to the field of computational mechanism design, which applies economic principles to computer systems design

Specification Faithfulness in Networks with Rational Nodes

It is useful to prove that an implementation correctly follows a specification. But even with a provably correct implementation, given a choice, would a node choose to follow it? This paper explores how to create distributed system specifications that will be faithfully implemented in networks with rational nodes, so that no node will choose to deviate. Given a strategyproof centralized mechanism, and given a network of nodes modeled as having rational-manipulation faults, we provide a proof technique to establish the incentive-, communication-, and algorithm-compatibility properties that guarantee that participating nodes are faithful to a suggested specification. As a case study, we apply our methods to extend the strategyproof interdomain routing mechanism proposed by Feigenbaum, Papadimitriou, Sami, and Shenker (FPSS) [7], defining a faithful implementation.Engineering and Applied Science