Monotonic Stable Solutions for Minimum Coloring Games

For the class of minimum coloring games (introduced by Deng et al. (1999)) we investigate the existence of population monotonic allocation schemes (introduced by Sprumont (1990)). We show that a minimum coloring game on a graph G has a population monotonic allocation scheme if and only if G is (P4, 2K2)-free (or, equivalently, if its complement graph G is quasi-threshold). Moreover, we provide a procedure that for these graphs always selects an integer population monotonic allocation scheme.Minimum coloring game;population monotonic allocation scheme;(P4;2K2)-free graph;quasi-threshold graph

Monotonic Stable Solutions for Minimum Coloring Games

For the class of minimum coloring games (introduced by Deng et al. (1999)) we investigate the existence of population monotonic allocation schemes (introduced by Sprumont (1990)). We show that a minimum coloring game on a graph G has a population monotonic allocation scheme if and only if G is (P4, 2K2)-free (or, equivalently, if its complement graph G is quasi-threshold). Moreover, we provide a procedure that for these graphs always selects an integer population monotonic allocation scheme.

Computing with strategic agents

Thesis (Ph. D.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science, 2005.Includes bibliographical references (p. 179-189).This dissertation studies mechanism design for various combinatorial problems in the presence of strategic agents. A mechanism is an algorithm for allocating a resource among a group of participants, each of which has a privately-known value for any particular allocation. A mechanism is truthful if it is in each participant's best interest to reveal his private information truthfully regardless of the strategies of the other participants. First, we explore a competitive auction framework for truthful mechanism design in the setting of multi-unit auctions, or auctions which sell multiple identical copies of a good. In this framework, the goal is to design a truthful auction whose revenue approximates that of an omniscient auction for any set of bids. We focus on two natural settings - the limited demand setting where bidders desire at most a fixed number of copies and the limited budget setting where bidders can spend at most a fixed amount of money. In the limit demand setting, all prior auctions employed the use of randomization in the computation of the allocation and prices.(cont.) Randomization in truthful mechanism design is undesirable because, in arguing the truthfulness of the mechanism, we employ an underlying assumption that the bidders trust the random coin flips of the auctioneer. Despite conjectures to the contrary, we are able to design a technique to derandomize any multi-unit auction in the limited demand case without losing much of the revenue guarantees. We then consider the limited budget case and provide the first competitive auction for this setting, although our auction is randomized. Next, we consider abandoning truthfulness in order to improve the revenue properties of procurement auctions, or auctions that are used to hire a team of agents to complete a task. We study first-price procurement auctions and their variants and argue that in certain settings the payment is never significantly more than, and sometimes much less than, truthful mechanisms. Then we consider the setting of cost-sharing auctions. In a cost-sharing auction, agents bid to receive some service, such as connectivity to the Internet. A subset of agents is then selected for service and charged prices to approximately recover the cost of servicing them.(cont.) We ask what can be achieved by cost -sharing auctions satisfying a strengthening of truthfulness called group-strategyproofness. Group-strategyproofness requires that even coalitions of agents do not have an incentive to report bids other than their true values in the absence of side-payments. For a particular class of such mechanisms, we develop a novel technique based on the probabilistic method for proving bounds on their revenue and use this technique to derive tight or nearly-tight bounds for several combinatorial optimization games. Our results are quite pessimistic, suggesting that for many problems group-strategyproofness is incompatible with revenue goals. Finally, we study centralized two-sided markets, or markets that form a matching between participants based on preference lists. We consider mechanisms that output matching which are stable with respect to the submitted preferences. A matching is stable if no two participants can jointly benefit by breaking away from the assigned matching to form a pair.(cont.) For such mechanisms, we are able to prove that in a certain probabilistic setting each participant's best strategy is truthfulness with high probability (assuming other participants are truthful as well) even though in such markets in general there are provably no truthful mechanisms.by Nicole Immorlica.Ph.D

Graphs Inducing Totally Balanced and Submodular Chinese Postman Games

Abstract A Chinese postman (CP) game is induced by a a weighted undirected, connected graph in which the edges are identified as players and a vertex is chosen as post-office location. Granot and Granot (2012) characterized graphs that give rise to CP games that are balanced. This note completes this line of research by characterizing graphs that give rise to CP games that are submodular (totally balanced, respectively).

Cost allocation in shortest path games

A class of cooperative games arising from shortest path problems is dened These shortest path games are shown to be totally balanced and allow a population monotonic allocation scheme Possible methods for obtaining core elements are indicated rst by relating to the allocation rules in taxation and bankruptcy problems second by constructing an explicit rule that takes opportunity costs into account by considering the costs of the second best alternative and that rewards players who are crucial to the construction of the shortest path Finally noncooperative games arising from shortest path problems are introduced in which players make bids or claims on paths The core allocations of the cooperative shortest path game coincide with the payo vectors in the strong Nash equilibria of the associated noncooperative shortest path gam

Cooperative game theory and its application to natural, environmental, and water resource issues : 3. application to water resources

This paper reviews various applications of cooperative game theory (CGT) to issues of water resources. With an increase in the competition over various water resources, the incidents of disputes have been in the center of allocation agreements. The paper reviews the cases of various water uses, such as multi-objective water projects, irrigation, groundwater, hydropower, urban water supply, wastewater, and transboundary water disputes. In addition to providing examples of cooperative solutions to allocation problems, the conclusion from this review suggests that cooperation over scarce water resources is possible under a variety of physical conditions and institutional arrangements. In particular, the various approaches for cost sharing and for allocation of physical water infrastructure and flow can serve as a basis for stable and efficient agreement, such that long-term investments in water projects are profitable and sustainable. The latter point is especially important, given recent developments in water policy in various countries and regional institutions such as the European Union (Water Framework Directive), calling for full cost recovery of investments and operation and maintenance in water projects. The CGT approaches discussed and demonstrated in this paper can provide a solid basis for finding possible and stable cost-sharing arrangements.Town Water Supply and Sanitation,Environmental Economics&Policies,Water Supply and Sanitation Governance and Institutions,Water Supply and Systems,Water and Industry

Assignment games with population monotonic allocation schemes

We characterize the assignment games which admit a population monotonic allocation scheme (PMAS) in terms of efficiently verifiable structural properties of the nonnegative matrix that induces the game. We prove that an assignment game is PMAS-admissible if and only if the positive elements of the underlying nonnegative matrix form orthogonal submatrices of three special types. In game theoretic terms it means that an assignment game is PMAS-admissible if and only if it contains either a veto player or a dominant veto mixed pair, or the game is a composition of these two types of special assignment games. We also show that in PMAS-admissible assignment games all core allocations can be extended to a PMAS, and the nucleolus coincides with the tau-value

Network Connectivity Game

We investigate the cost allocation strategy associated with the problem of providing service /communication between all pairs of network nodes. There is a cost associated with each link and the communication between any pair of nodes can be delivered via paths connecting those nodes. The example of a cost efficient solution which could provide service for all node pairs is a (non-rooted) minimum cost spanning tree. The cost of such a solution should be distributed among users who might have conflicting interests. The objective of this paper is to formulate the above cost allocation problem as a cooperative game, to be referred to as a Network Connectivity (NC) game, and develop a stable and efficient cost allocation scheme. The NC game is related to the Minimum Cost Spanning Tree games and to the Shortest Path games. The profound difference is that in those games the service is delivered from some common source node to the rest of the network, while in the NC game there is no source and the service is established through the two-way interaction among all pairs of participating nodes. We formulate Network Connectivity (NC) game and construct an efficient cost allocation algorithm which finds some points in the core of the NC game. Finally, we discuss the Egalitarian Network Cost Allocation (ENCA) rule and demonstrate that it finds an additional core point