10,238 research outputs found
Social Welfare in One-sided Matching Markets without Money
We study social welfare in one-sided matching markets where the goal is to
efficiently allocate n items to n agents that each have a complete, private
preference list and a unit demand over the items. Our focus is on allocation
mechanisms that do not involve any monetary payments. We consider two natural
measures of social welfare: the ordinal welfare factor which measures the
number of agents that are at least as happy as in some unknown, arbitrary
benchmark allocation, and the linear welfare factor which assumes an agent's
utility linearly decreases down his preference lists, and measures the total
utility to that achieved by an optimal allocation. We analyze two matching
mechanisms which have been extensively studied by economists. The first
mechanism is the random serial dictatorship (RSD) where agents are ordered in
accordance with a randomly chosen permutation, and are successively allocated
their best choice among the unallocated items. The second mechanism is the
probabilistic serial (PS) mechanism of Bogomolnaia and Moulin [8], which
computes a fractional allocation that can be expressed as a convex combination
of integral allocations. The welfare factor of a mechanism is the infimum over
all instances. For RSD, we show that the ordinal welfare factor is
asymptotically 1/2, while the linear welfare factor lies in the interval [.526,
2/3]. For PS, we show that the ordinal welfare factor is also 1/2 while the
linear welfare factor is roughly 2/3. To our knowledge, these results are the
first non-trivial performance guarantees for these natural mechanisms
Social Welfare in One-Sided Matching Mechanisms
We study the Price of Anarchy of mechanisms for the well-known problem of
one-sided matching, or house allocation, with respect to the social welfare
objective. We consider both ordinal mechanisms, where agents submit preference
lists over the items, and cardinal mechanisms, where agents may submit
numerical values for the items being allocated. We present a general lower
bound of on the Price of Anarchy, which applies to all
mechanisms. We show that two well-known mechanisms, Probabilistic Serial, and
Random Priority, achieve a matching upper bound. We extend our lower bound to
the Price of Stability of a large class of mechanisms that satisfy a common
proportionality property, and show stronger bounds on the Price of Anarchy of
all deterministic mechanisms
Social welfare in one-sided matchings: Random priority and beyond
We study the problem of approximate social welfare maximization (without
money) in one-sided matching problems when agents have unrestricted cardinal
preferences over a finite set of items. Random priority is a very well-known
truthful-in-expectation mechanism for the problem. We prove that the
approximation ratio of random priority is Theta(n^{-1/2}) while no
truthful-in-expectation mechanism can achieve an approximation ratio better
than O(n^{-1/2}), where n is the number of agents and items. Furthermore, we
prove that the approximation ratio of all ordinal (not necessarily
truthful-in-expectation) mechanisms is upper bounded by O(n^{-1/2}), indicating
that random priority is asymptotically the best truthful-in-expectation
mechanism and the best ordinal mechanism for the problem.Comment: 13 page
Truthful approximations to range voting
We consider the fundamental mechanism design problem of approximate social
welfare maximization under general cardinal preferences on a finite number of
alternatives and without money. The well-known range voting scheme can be
thought of as a non-truthful mechanism for exact social welfare maximization in
this setting. With m being the number of alternatives, we exhibit a randomized
truthful-in-expectation ordinal mechanism implementing an outcome whose
expected social welfare is at least an Omega(m^{-3/4}) fraction of the social
welfare of the socially optimal alternative. On the other hand, we show that
for sufficiently many agents and any truthful-in-expectation ordinal mechanism,
there is a valuation profile where the mechanism achieves at most an
O(m^{-{2/3}) fraction of the optimal social welfare in expectation. We get
tighter bounds for the natural special case of m = 3, and in that case
furthermore obtain separation results concerning the approximation ratios
achievable by natural restricted classes of truthful-in-expectation mechanisms.
In particular, we show that for m = 3 and a sufficiently large number of
agents, the best mechanism that is ordinal as well as mixed-unilateral has an
approximation ratio between 0.610 and 0.611, the best ordinal mechanism has an
approximation ratio between 0.616 and 0.641, while the best mixed-unilateral
mechanism has an approximation ratio bigger than 0.660. In particular, the best
mixed-unilateral non-ordinal (i.e., cardinal) mechanism strictly outperforms
all ordinal ones, even the non-mixed-unilateral ordinal ones
Welfare Maximization and Truthfulness in Mechanism Design with Ordinal Preferences
We study mechanism design problems in the {\em ordinal setting} wherein the
preferences of agents are described by orderings over outcomes, as opposed to
specific numerical values associated with them. This setting is relevant when
agents can compare outcomes, but aren't able to evaluate precise utilities for
them. Such a situation arises in diverse contexts including voting and matching
markets.
Our paper addresses two issues that arise in ordinal mechanism design. To
design social welfare maximizing mechanisms, one needs to be able to
quantitatively measure the welfare of an outcome which is not clear in the
ordinal setting. Second, since the impossibility results of Gibbard and
Satterthwaite~\cite{Gibbard73,Satterthwaite75} force one to move to randomized
mechanisms, one needs a more nuanced notion of truthfulness.
We propose {\em rank approximation} as a metric for measuring the quality of
an outcome, which allows us to evaluate mechanisms based on worst-case
performance, and {\em lex-truthfulness} as a notion of truthfulness for
randomized ordinal mechanisms. Lex-truthfulness is stronger than notions
studied in the literature, and yet flexible enough to admit a rich class of
mechanisms {\em circumventing classical impossibility results}. We demonstrate
the usefulness of the above notions by devising lex-truthful mechanisms
achieving good rank-approximation factors, both in the general ordinal setting,
as well as structured settings such as {\em (one-sided) matching markets}, and
its generalizations, {\em matroid} and {\em scheduling} markets.Comment: Some typos correcte
Fair assignment of indivisible objects under ordinal preferences
We consider the discrete assignment problem in which agents express ordinal
preferences over objects and these objects are allocated to the agents in a
fair manner. We use the stochastic dominance relation between fractional or
randomized allocations to systematically define varying notions of
proportionality and envy-freeness for discrete assignments. The computational
complexity of checking whether a fair assignment exists is studied for these
fairness notions. We also characterize the conditions under which a fair
assignment is guaranteed to exist. For a number of fairness concepts,
polynomial-time algorithms are presented to check whether a fair assignment
exists. Our algorithmic results also extend to the case of unequal entitlements
of agents. Our NP-hardness result, which holds for several variants of
envy-freeness, answers an open question posed by Bouveret, Endriss, and Lang
(ECAI 2010). We also propose fairness concepts that always suggest a non-empty
set of assignments with meaningful fairness properties. Among these concepts,
optimal proportionality and optimal weak proportionality appear to be desirable
fairness concepts.Comment: extended version of a paper presented at AAMAS 201
Equilibria Under the Probabilistic Serial Rule
The probabilistic serial (PS) rule is a prominent randomized rule for
assigning indivisible goods to agents. Although it is well known for its good
fairness and welfare properties, it is not strategyproof. In view of this, we
address several fundamental questions regarding equilibria under PS. Firstly,
we show that Nash deviations under the PS rule can cycle. Despite the
possibilities of cycles, we prove that a pure Nash equilibrium is guaranteed to
exist under the PS rule. We then show that verifying whether a given profile is
a pure Nash equilibrium is coNP-complete, and computing a pure Nash equilibrium
is NP-hard. For two agents, we present a linear-time algorithm to compute a
pure Nash equilibrium which yields the same assignment as the truthful profile.
Finally, we conduct experiments to evaluate the quality of the equilibria that
exist under the PS rule, finding that the vast majority of pure Nash equilibria
yield social welfare that is at least that of the truthful profile.Comment: arXiv admin note: text overlap with arXiv:1401.6523, this paper
supersedes the equilibria section in our previous report arXiv:1401.652
Comparing School Choice Mechanisms by Interim and Ex-Ante Welfare
The Boston mechanism and deferred acceptance (DA) are two competing mechanisms widely used in school choice problems across the United States. Recent work has highlighted welfare gains from the use of the Boston mechanism, in particular finding that when cardinal utility is taken into account, Boston interim Pareto dominates DA in certain incomplete information environments with no school priorities. We show that these previous interim results are not robust to the introduction of nontrivial (weak) priorities. However, we partially restore the earlier results by showing that from an ex-ante utility perspective, the Boston mechanism once again Pareto dominates any strategyproof mechanism (including DA), even allowing for arbitrary priority structures. Thus, we suggest ex-ante Pareto dominance as a criterion by which to compare school choice mechanisms. This criterion may be of interest to school district leaders, as they can be thought of as social planners whose goal is to maximize the overall ex-ante welfare of the students. From a policy perspective, school districts may have justification for the use the Boston mechanism over a strategyproof alternative, even with nontrivial priority structures.school choice, Boston mechanism, deferred acceptance, market design, weak priorities
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