12,407 research outputs found
Mechanism Design with Approximate Valuations
In mechanism design, we replace the strong assumption that each player knows his own payoff type EXACTLY with the more realistic assumption that he knows it only APPROXIMATELY. Specifically, we study the classical problem of maximizing social welfare in single-good auctions when players know their true valuations only within a constant multiplicative factor d in (0,1). Our approach is deliberately non-Bayesian and very conservative: each player i only knows that his true valuation is one among finitely many values in a d-APPROXIMATE SET, Ki, and his true valuation is ADVERSARIALLY and SECRETLY chosen in Ki at the beginning of the auction. We prove tight upper and lower bounds for the fraction of the maximum social welfare achievable in our model, in either dominant or undominated strategies, both via deterministic and probabilistic mechanisms. The landscape emerging is quite unusual and intriguing
Budget Feasible Mechanism Design: From Prior-Free to Bayesian
Budget feasible mechanism design studies procurement combinatorial auctions
where the sellers have private costs to produce items, and the
buyer(auctioneer) aims to maximize a social valuation function on subsets of
items, under the budget constraint on the total payment. One of the most
important questions in the field is "which valuation domains admit truthful
budget feasible mechanisms with `small' approximations (compared to the social
optimum)?" Singer showed that additive and submodular functions have such
constant approximations. Recently, Dobzinski, Papadimitriou, and Singer gave an
O(log^2 n)-approximation mechanism for subadditive functions; they also
remarked that: "A fundamental question is whether, regardless of computational
constraints, a constant-factor budget feasible mechanism exists for subadditive
functions."
We address this question from two viewpoints: prior-free worst case analysis
and Bayesian analysis. For the prior-free framework, we use an LP that
describes the fractional cover of the valuation function; it is also connected
to the concept of approximate core in cooperative game theory. We provide an
O(I)-approximation mechanism for subadditive functions, via the worst case
integrality gap I of LP. This implies an O(log n)-approximation for subadditive
valuations, O(1)-approximation for XOS valuations, and for valuations with a
constant I. XOS valuations are an important class of functions that lie between
submodular and subadditive classes. We give another polynomial time O(log
n/loglog n) sub-logarithmic approximation mechanism for subadditive valuations.
For the Bayesian framework, we provide a constant approximation mechanism for
all subadditive functions, using the above prior-free mechanism for XOS
valuations as a subroutine. Our mechanism allows correlations in the
distribution of private information and is universally truthful.Comment: to appear in STOC 201
Social Status and Badge Design
Many websites rely on user-generated content to provide value to consumers.
These websites typically incentivize participation by awarding users badges
based on their contributions. While these badges typically have no explicit
value, they act as symbols of social status within a community. In this paper,
we consider the design of badge mechanisms for the objective of maximizing the
total contributions made to a website. Users exert costly effort to make
contributions and, in return, are awarded with badges. A badge is only valued
to the extent that it signals social status and thus badge valuations are
determined endogenously by the number of users who earn each badge. The goal of
this paper is to study the design of optimal and approximately badge mechanisms
under these status valuations. We characterize badge mechanisms by whether they
use a coarse partitioning scheme, i.e. awarding the same badge to many users,
or use a fine partitioning scheme, i.e. awarding a unique badge to most users.
We find that the optimal mechanism uses both fine partitioning and coarse
partitioning. When status valuations exhibit a decreasing marginal value
property, we prove that coarse partitioning is a necessary feature of any
approximately optimal mechanism. Conversely, when status valuations exhibit an
increasing marginal value property, we prove that fine partitioning is
necessary for approximate optimality
Truthful Multi-unit Procurements with Budgets
We study procurement games where each seller supplies multiple units of his
item, with a cost per unit known only to him. The buyer can purchase any number
of units from each seller, values different combinations of the items
differently, and has a budget for his total payment.
For a special class of procurement games, the {\em bounded knapsack} problem,
we show that no universally truthful budget-feasible mechanism can approximate
the optimal value of the buyer within , where is the total number of
units of all items available. We then construct a polynomial-time mechanism
that gives a -approximation for procurement games with {\em concave
additive valuations}, which include bounded knapsack as a special case. Our
mechanism is thus optimal up to a constant factor. Moreover, for the bounded
knapsack problem, given the well-known FPTAS, our results imply there is a
provable gap between the optimization domain and the mechanism design domain.
Finally, for procurement games with {\em sub-additive valuations}, we
construct a universally truthful budget-feasible mechanism that gives an
-approximation in polynomial time with a
demand oracle.Comment: To appear at WINE 201
Cost Sharing over Combinatorial Domains: Complement-Free Cost Functions and Beyond
We study mechanism design for combinatorial cost sharing models. Imagine that multiple items or services are available to be shared among a set of interested agents. The outcome of a mechanism in this setting consists of an assignment, determining for each item the set of players who are granted service, together with respective payments. Although there are several works studying specialized versions of such problems, there has been almost no progress for general combinatorial cost sharing domains until recently [S. Dobzinski and S. Ovadia, 2017]. Still, many questions about the interplay between strategyproofness, cost recovery and economic efficiency remain unanswered.
The main goal of our work is to further understand this interplay in terms of budget balance and social cost approximation. Towards this, we provide a refinement of cross-monotonicity (which we term trace-monotonicity) that is applicable to iterative mechanisms. The trace here refers to the order in which players become finalized. On top of this, we also provide two parameterizations (complementary to a certain extent) of cost functions which capture the behavior of their average cost-shares. Based on our trace-monotonicity property, we design a scheme of ascending cost sharing mechanisms which is applicable to the combinatorial cost sharing setting with symmetric submodular valuations. Using our first cost function parameterization, we identify conditions under which our mechanism is weakly group-strategyproof, O(1)-budget-balanced and O(H_n)-approximate with respect to the social cost. Further, we show that our mechanism is budget-balanced and H_n-approximate if both the valuations and the cost functions are symmetric submodular; given existing impossibility results, this is best possible. Finally, we consider general valuation functions and exploit our second parameterization to derive a more fine-grained analysis of the Sequential Mechanism introduced by Moulin. This mechanism is budget balanced by construction, but in general only guarantees a poor social cost approximation of n. We identify conditions under which the mechanism achieves improved social cost approximation guarantees. In particular, we derive improved mechanisms for fundamental cost sharing problems, including Vertex Cover and Set Cover
A Bridge between Liquid and Social Welfare in Combinatorial Auctions with Submodular Bidders
We study incentive compatible mechanisms for Combinatorial Auctions where the
bidders have submodular (or XOS) valuations and are budget-constrained. Our
objective is to maximize the \emph{liquid welfare}, a notion of efficiency for
budget-constrained bidders introduced by Dobzinski and Paes Leme (2014). We
show that some of the known truthful mechanisms that best-approximate the
social welfare for Combinatorial Auctions with submodular bidders through
demand query oracles can be adapted, so that they retain truthfulness and
achieve asymptotically the same approximation guarantees for the liquid
welfare. More specifically, for the problem of optimizing the liquid welfare in
Combinatorial Auctions with submodular bidders, we obtain a universally
truthful randomized -approximate mechanism, where is the number
of items, by adapting the mechanism of Krysta and V\"ocking (2012).
Additionally, motivated by large market assumptions often used in mechanism
design, we introduce a notion of competitive markets and show that in such
markets, liquid welfare can be approximated within a constant factor by a
randomized universally truthful mechanism. Finally, in the Bayesian setting, we
obtain a truthful -approximate mechanism for the case where bidder
valuations are generated as independent samples from a known distribution, by
adapting the results of Feldman, Gravin and Lucier (2014).Comment: AAAI-1
Truthful Assignment without Money
We study the design of truthful mechanisms that do not use payments for the
generalized assignment problem (GAP) and its variants. An instance of the GAP
consists of a bipartite graph with jobs on one side and machines on the other.
Machines have capacities and edges have values and sizes; the goal is to
construct a welfare maximizing feasible assignment. In our model of private
valuations, motivated by impossibility results, the value and sizes on all
job-machine pairs are public information; however, whether an edge exists or
not in the bipartite graph is a job's private information.
We study several variants of the GAP starting with matching. For the
unweighted version, we give an optimal strategyproof mechanism; for maximum
weight bipartite matching, however, we show give a 2-approximate strategyproof
mechanism and show by a matching lowerbound that this is optimal. Next we study
knapsack-like problems, which are APX-hard. For these problems, we develop a
general LP-based technique that extends the ideas of Lavi and Swamy to reduce
designing a truthful mechanism without money to designing such a mechanism for
the fractional version of the problem, at a loss of a factor equal to the
integrality gap in the approximation ratio. We use this technique to obtain
strategyproof mechanisms with constant approximation ratios for these problems.
We then design an O(log n)-approximate strategyproof mechanism for the GAP by
reducing, with logarithmic loss in the approximation, to our solution for the
value-invariant GAP. Our technique may be of independent interest for designing
truthful mechanisms without money for other LP-based problems.Comment: Extended abstract appears in the 11th ACM Conference on Electronic
Commerce (EC), 201
Algorithms as Mechanisms: The Price of Anarchy of Relax-and-Round
Many algorithms that are originally designed without explicitly considering
incentive properties are later combined with simple pricing rules and used as
mechanisms. The resulting mechanisms are often natural and simple to
understand. But how good are these algorithms as mechanisms? Truthful reporting
of valuations is typically not a dominant strategy (certainly not with a
pay-your-bid, first-price rule, but it is likely not a good strategy even with
a critical value, or second-price style rule either). Our goal is to show that
a wide class of approximation algorithms yields this way mechanisms with low
Price of Anarchy.
The seminal result of Lucier and Borodin [SODA 2010] shows that combining a
greedy algorithm that is an -approximation algorithm with a
pay-your-bid payment rule yields a mechanism whose Price of Anarchy is
. In this paper we significantly extend the class of algorithms for
which such a result is available by showing that this close connection between
approximation ratio on the one hand and Price of Anarchy on the other also
holds for the design principle of relaxation and rounding provided that the
relaxation is smooth and the rounding is oblivious.
We demonstrate the far-reaching consequences of our result by showing its
implications for sparse packing integer programs, such as multi-unit auctions
and generalized matching, for the maximum traveling salesman problem, for
combinatorial auctions, and for single source unsplittable flow problems. In
all these problems our approach leads to novel simple, near-optimal mechanisms
whose Price of Anarchy either matches or beats the performance guarantees of
known mechanisms.Comment: Extended abstract appeared in Proc. of 16th ACM Conference on
Economics and Computation (EC'15
Simple Mechanisms for a Subadditive Buyer and Applications to Revenue Monotonicity
We study the revenue maximization problem of a seller with n heterogeneous
items for sale to a single buyer whose valuation function for sets of items is
unknown and drawn from some distribution D. We show that if D is a distribution
over subadditive valuations with independent items, then the better of pricing
each item separately or pricing only the grand bundle achieves a
constant-factor approximation to the revenue of the optimal mechanism. This
includes buyers who are k-demand, additive up to a matroid constraint, or
additive up to constraints of any downwards-closed set system (and whose values
for the individual items are sampled independently), as well as buyers who are
fractionally subadditive with item multipliers drawn independently. Our proof
makes use of the core-tail decomposition framework developed in prior work
showing similar results for the significantly simpler class of additive buyers
[LY13, BILW14].
In the second part of the paper, we develop a connection between
approximately optimal simple mechanisms and approximate revenue monotonicity
with respect to buyers' valuations. Revenue non-monotonicity is the phenomenon
that sometimes strictly increasing buyers' values for every set can strictly
decrease the revenue of the optimal mechanism [HR12]. Using our main result, we
derive a bound on how bad this degradation can be (and dub such a bound a proof
of approximate revenue monotonicity); we further show that better bounds on
approximate monotonicity imply a better analysis of our simple mechanisms.Comment: Updated title and body to version included in TEAC. Adapted Theorem
5.2 to accommodate \eta-BIC auctions (versus exactly BIC
- …