52,418 research outputs found
Quadratic Core-Selecting Payment Rules for Combinatorial Auctions
We report on the use of a quadratic programming technique in recent and upcoming spectrum auctions in Europe. Specifically, we compute a unique point in the core that minimizes the sum of squared deviations from a reference point, for example, from the Vickrey-Clarke-Groves payments. Analyzing the Karush-Kuhn-Tucker conditions, we demonstrate that the resulting payments can be decomposed into a series of economically meaningful and equitable penalties. Furthermore, we discuss the benefits of this combinatorial auction, explore the use of alternative reserve pricing approaches in this context, and indicate the results of several hundred computational runs using CATS data.Auctions, spectrum auctions, market design, package auction, clock auction, combinatorial auction
Combinatorial Assortment Optimization
Assortment optimization refers to the problem of designing a slate of
products to offer potential customers, such as stocking the shelves in a
convenience store. The price of each product is fixed in advance, and a
probabilistic choice function describes which product a customer will choose
from any given subset. We introduce the combinatorial assortment problem, where
each customer may select a bundle of products. We consider a model of consumer
choice where the relative value of different bundles is described by a
valuation function, while individual customers may differ in their absolute
willingness to pay, and study the complexity of the resulting optimization
problem. We show that any sub-polynomial approximation to the problem requires
exponentially many demand queries when the valuation function is XOS, and that
no FPTAS exists even for succinctly-representable submodular valuations. On the
positive side, we show how to obtain constant approximations under a
"well-priced" condition, where each product's price is sufficiently high. We
also provide an exact algorithm for -additive valuations, and show how to
extend our results to a learning setting where the seller must infer the
customers' preferences from their purchasing behavior
Learning Large-Scale Bayesian Networks with the sparsebn Package
Learning graphical models from data is an important problem with wide
applications, ranging from genomics to the social sciences. Nowadays datasets
often have upwards of thousands---sometimes tens or hundreds of thousands---of
variables and far fewer samples. To meet this challenge, we have developed a
new R package called sparsebn for learning the structure of large, sparse
graphical models with a focus on Bayesian networks. While there are many
existing software packages for this task, this package focuses on the unique
setting of learning large networks from high-dimensional data, possibly with
interventions. As such, the methods provided place a premium on scalability and
consistency in a high-dimensional setting. Furthermore, in the presence of
interventions, the methods implemented here achieve the goal of learning a
causal network from data. Additionally, the sparsebn package is fully
compatible with existing software packages for network analysis.Comment: To appear in the Journal of Statistical Software, 39 pages, 7 figure
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
The Maximum Traveling Salesman Problem with Submodular Rewards
In this paper, we look at the problem of finding the tour of maximum reward
on an undirected graph where the reward is a submodular function, that has a
curvature of , of the edges in the tour. This problem is known to be
NP-hard. We analyze two simple algorithms for finding an approximate solution.
Both algorithms require oracle calls to the submodular function. The
approximation factors are shown to be and
, respectively; so the second
method has better bounds for low values of . We also look at how these
algorithms perform for a directed graph and investigate a method to consider
edge costs in addition to rewards. The problem has direct applications in
monitoring an environment using autonomous mobile sensors where the sensing
reward depends on the path taken. We provide simulation results to empirically
evaluate the performance of the algorithms.Comment: Extended version of ACC 2013 submission (including p-system greedy
bound with curvature
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