264 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
Trust-Based Mechanisms for Robust and Efficient Task Allocation in the Presence of Execution Uncertainty
Vickrey-Clarke-Groves (VCG) mechanisms are often used to allocate tasks to selfish and rational agents. VCG mechanisms are incentive-compatible, direct mechanisms that are efficient (i.e. maximise social utility) and individually rational (i.e. agents prefer to join rather than opt out). However, an important assumption of these mechanisms is that the agents will always successfully complete their allocated tasks. Clearly, this assumption is unrealistic in many real-world applications where agents can, and often do, fail in their endeavours. Moreover, whether an agent is deemed to have failed may be perceived differently by different agents. Such subjective perceptions about an agentās probability of succeeding at a given task are often captured and reasoned about using the notion of trust. Given this background, in this paper, we investigate the design of novel mechanisms that take into account the trust between agents when allocating tasks. Specifically, we develop a new class of mechanisms, called trust-based mechanisms, that can take into account multiple subjective measures of the probability of an agent succeeding at a given task and produce allocations that maximise social utility, whilst ensuring that no agent obtains a negative utility. We then show that such mechanisms pose a challenging new combinatorial optimisation problem (that is NP-complete), devise a novel representation for solving the problem, and develop an effective integer programming solution (that can solve instances with about 2Ć105 possible allocations in 40 seconds).
Economic Institutions and Stability: A Network Approach
We consider a network economy in which economic agents are connected within a structure of value-generating relationships. Agents are assumed to be able to participate in three types of economic activities: autarkic self-provision; binary matching interactions; and multi-person cooperative collaborations. We introduce two concepts of stability and provide sufficient and necessary conditions on the prevailing network structure for the existence of stable assignments, both in the absence of externalities from cooperation as well as in the presence of size-based externalities. We show that institutional elements such as the emergence of socioeconomic roles and organizations based on hierarchical leadership structures are necessary for establishing stability and as such support and promote stable economic development.Cooperatives;Networks;Clubs;Network economies;Stable matchings
Pairwise Kidney Exchange
The theoretical literature on exchange of indivisible goods finds natural application in organizing the exchange of live donor kidneys for transplant. However, in kidney exchange, there are constraints on the size of feasible exchanges. Initially, kidney exchanges are likely to be pairwise exchanges, between just two patient-donor pairs, as these are logistically simpler than larger exchanges. Furthermore, the experience of many American surgeons suggests to them that preferences over kidneys are approximately 0-1, i.e. that patients and surgeons should be largely indifferent among healthy donors whose kidneys are compatible with the patient. This is because, in the United States, transplants of compatible live kidneys have about equal graft survival probabilities, regardless of the closeness of tissue types between patient and donor. We show that, although the pairwise constraint eliminates some potential exchanges, there is a wide class of constrained-efficient mechanisms that are strategy-proof when patient-donor pairs and surgeons have 0-1 preferences. This class of mechanisms includes deterministic mechanisms that would accomodate the kinds of priority setting that organ banks currently use to allocate cadaver organs, as well as stochastic mechanisms that allow distributive justice issues to be
Pairwise Kidney Exchange
In connection with an earlier paper on the exchange of live donor kidneys (Roth, Sānmez, and Å”nver 2004) the authors entered into discussions with New England transplant surgeons and their colleagues in the transplant community, aimed at implementing a Kidney Exchange program. In the course of those discussions it became clear that a likely first step will be to implement pairwise exchanges, between just two patient-donor pairs, as these are logistically simpler than exchanges involving more than two pairs. Furthermore, the experience of these surgeons suggests to them that patient and surgeon preferences over kidneys should be 0-1, i.e. that patients and surgeons should be indifferent among kidneys from healthy donors whose kidneys are compatible with the patient. This is because, in the United States, transplants of compatible live kidneys have about equal graft survival `robabilities, regardless of the closeness of tissue types between patient and dOnor (unless there is a rare perfect match). In the present paper we show that, although thd pairwise constraint eliminates some potential exchanges, there is a wide class of constrained-efficient mechanisms 4hat are strategy-proof when patient-donor pairs and surgeons have 0-1 preferences. This class of meahanisms includes deterministic mechanisms that would accomodate the kinds of priority setting that organ banks currently use for the allocation of cadaver organs, as well as stochastic mechanisms that allow considerations of distributive justice to be addressed.
Constrained school choice
Recently, several school districts in the US have adopted or consider adopting the Student-Optimal Stable Mechanism or the Top Trading Cycles Mechanism to assign children to public schools. There is clear evidence that for school districts that employ (variants of) the so-called Boston Mechanism the transition would lead to efficiency gains. The first two mechanisms are strategy-proof, but in practice student assignment procedures impede students to submit a preference list that contains all their acceptable schools. Therefore, any desirable property of the mechanisms is likely toget distorted. We study the non trivial preference revelation game where students can only declare up to a fixed number (quota) of schools to be acceptable. We focus on the stability of the Nash equilibrium outcomes. Our main results identify rather stringent necessary and sufficient conditions on the priorities to guaranteestability. This stands in sharp contrast with the Boston Mechanism which yields stable Nash equilibrium outcomes, independently of the quota. Hence, the transition to any of the two mechanisms is likely to come with a higher risk that students seek legal actionas lower priority students may occupy more preferred schools
Adapting a Kidney Exchange Algorithm to Align with Human Values
The efficient and fair allocation of limited resources is a classical problem
in economics and computer science. In kidney exchanges, a central market maker
allocates living kidney donors to patients in need of an organ. Patients and
donors in kidney exchanges are prioritized using ad-hoc weights decided on by
committee and then fed into an allocation algorithm that determines who gets
what--and who does not. In this paper, we provide an end-to-end methodology for
estimating weights of individual participant profiles in a kidney exchange. We
first elicit from human subjects a list of patient attributes they consider
acceptable for the purpose of prioritizing patients (e.g., medical
characteristics, lifestyle choices, and so on). Then, we ask subjects
comparison queries between patient profiles and estimate weights in a
principled way from their responses. We show how to use these weights in kidney
exchange market clearing algorithms. We then evaluate the impact of the weights
in simulations and find that the precise numerical values of the weights we
computed matter little, other than the ordering of profiles that they imply.
However, compared to not prioritizing patients at all, there is a significant
effect, with certain classes of patients being (de)prioritized based on the
human-elicited value judgments
Value-based Resource Matching with Fairness Criteria: Application to Agricultural Water Trading
Optimal allocation of agricultural water in the event of droughts is an
important global problem. In addressing this problem, many aspects, including
the welfare of farmers, the economy, and the environment, must be considered.
Under this backdrop, our work focuses on several resource-matching problems
accounting for agents with multi-crop portfolios, geographic constraints, and
fairness. First, we address a matching problem where the goal is to maximize a
welfare function in two-sided markets where buyers' requirements and sellers'
supplies are represented by value functions that assign prices (or costs) to
specified volumes of water. For the setting where the value functions satisfy
certain monotonicity properties, we present an efficient algorithm that
maximizes a social welfare function. When there are minimum water requirement
constraints, we present a randomized algorithm which ensures that the
constraints are satisfied in expectation. For a single seller--multiple buyers
setting with fairness constraints, we design an efficient algorithm that
maximizes the minimum level of satisfaction of any buyer. We also present
computational complexity results that highlight the limits on the
generalizability of our results. We evaluate the algorithms developed in our
work with experiments on both real-world and synthetic data sets with respect
to drought severity, value functions, and seniority of agents
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