A novel result on the revenue equivalence theorem

This paper gives two examples to break through the revelation principle. Furthermore, the revenue equivalence theorem does not hold.Quantum game theory; Algorithmic Bayesian mechanism; Revelation principle; Revenue equivalence theorem.

Truthful Mechanisms for Secure Communication in Wireless Cooperative System

To ensure security in data transmission is one of the most important issues for wireless relay networks, and physical layer security is an attractive alternative solution to address this issue. In this paper, we consider a cooperative network, consisting of one source node, one destination node, one eavesdropper node, and a number of relay nodes. Specifically, the source may select several relays to help forward the signal to the corresponding destination to achieve the best security performance. However, the relays may have the incentive not to report their true private channel information in order to get more chances to be selected and gain more payoff from the source. We propose a Vickey-Clark-Grove (VCG) based mechanism and an Arrow-d'Aspremont-Gerard-Varet (AGV) based mechanism into the investigated relay network to solve this cheating problem. In these two different mechanisms, we design different "transfer payment" functions to the payoff of each selected relay and prove that each relay gets its maximum (expected) payoff when it truthfully reveals its private channel information to the source. And then, an optimal secrecy rate of the network can be achieved. After discussing and comparing the VCG and AGV mechanisms, we prove that the AGV mechanism can achieve all of the basic qualifications (incentive compatibility, individual rationality and budget balance) for our system. Moreover, we discuss the optimal quantity of relays that the source node should select. Simulation results verify efficiency and fairness of the VCG and AGV mechanisms, and consolidate these conclusions.Comment: To appear in IEEE Transactions on Wireless Communication

A novel result on the revenue equivalence theorem

This paper gives two examples to break through the revelation principle. Furthermore, the revenue equivalence theorem does not hold

Ad auctions and cascade model: GSP inefficiency and algorithms

The design of the best economic mechanism for Sponsored Search Auctions (SSAs) is a central task in computational mechanism design/game theory. Two open questions concern the adoption of user models more accurate than that one currently used and the choice between Generalized Second Price auction (GSP) and Vickrey-Clark-Groves mechanism (VCG). In this paper, we provide some contributions to answer these questions. We study Price of Anarchy (PoA) and Price of Stability (PoS) over social welfare and auctioneer's revenue of GSP w.r.t. the VCG when the users follow the famous cascade model. Furthermore, we provide exact, randomized, and approximate algorithms, showing that in real-world settings (Yahoo! Webscope A3 dataset, 10 available slots) optimal allocations can be found in less than 1s with up to 1000 ads, and can be approximated in less than 20ms even with more than 1000 ads with an average accuracy greater than 99%.Comment: AAAI16, to appea

Pricing and Investments in Internet Security: A Cyber-Insurance Perspective

Internet users such as individuals and organizations are subject to different types of epidemic risks such as worms, viruses, spams, and botnets. To reduce the probability of risk, an Internet user generally invests in traditional security mechanisms like anti-virus and anti-spam software, sometimes also known as self-defense mechanisms. However, such software does not completely eliminate risk. Recent works have considered the problem of residual risk elimination by proposing the idea of cyber-insurance. In this regard, an important research problem is the analysis of optimal user self-defense investments and cyber-insurance contracts under the Internet environment. In this paper, we investigate two problems and their relationship: 1) analyzing optimal self-defense investments in the Internet, under optimal cyber-insurance coverage, where optimality is an insurer objective and 2) designing optimal cyber-insurance contracts for Internet users, where a contract is a (premium, coverage) pair