40 research outputs found
Mechanisms for Risk Averse Agents, Without Loss
Auctions in which agents' payoffs are random variables have received
increased attention in recent years. In particular, recent work in algorithmic
mechanism design has produced mechanisms employing internal randomization,
partly in response to limitations on deterministic mechanisms imposed by
computational complexity. For many of these mechanisms, which are often
referred to as truthful-in-expectation, incentive compatibility is contingent
on the assumption that agents are risk-neutral. These mechanisms have been
criticized on the grounds that this assumption is too strong, because "real"
agents are typically risk averse, and moreover their precise attitude towards
risk is typically unknown a-priori. In response, researchers in algorithmic
mechanism design have sought the design of universally-truthful mechanisms ---
mechanisms for which incentive-compatibility makes no assumptions regarding
agents' attitudes towards risk.
We show that any truthful-in-expectation mechanism can be generically
transformed into a mechanism that is incentive compatible even when agents are
risk averse, without modifying the mechanism's allocation rule. The transformed
mechanism does not require reporting of agents' risk profiles. Equivalently,
our result can be stated as follows: Every (randomized) allocation rule that is
implementable in dominant strategies when players are risk neutral is also
implementable when players are endowed with an arbitrary and unknown concave
utility function for money.Comment: Presented at the workshop on risk aversion in algorithmic game theory
and mechanism design, held in conjunction with EC 201
Truthful approximation mechanisms for restricted combinatorial auctions
When attempting to design a truthful mechanism for a computationally hard problem such as combinatorial auctions, one is faced with the problem that most efficiently computable heuristics can not be embedded in any truthful mechanism (e.g. VCG-like payment rules will not ensure truthfulness).
We develop a set of techniques that allow constructing efficiently computable truthful mechanisms for combinatorial auctions in the special case where each bidder desires a specific known subset of items and only the valuation is unknown by the mechanism (the single parameter case). For this case we extend the work of Lehmann, O'Callaghan, and Shoham, who presented greedy heuristics. We show how to use If-Then-Else constructs, perform a partial search, and use the LP relaxation. We apply these techniques for several canonical types of combinatorial auctions, obtaining truthful mechanisms with provable approximation ratios
Sum of Us: Strategyproof Selection from the Selectors
We consider directed graphs over a set of n agents, where an edge (i,j) is
taken to mean that agent i supports or trusts agent j. Given such a graph and
an integer k\leq n, we wish to select a subset of k agents that maximizes the
sum of indegrees, i.e., a subset of k most popular or most trusted agents. At
the same time we assume that each individual agent is only interested in being
selected, and may misreport its outgoing edges to this end. This problem
formulation captures realistic scenarios where agents choose among themselves,
which can be found in the context of Internet search, social networks like
Twitter, or reputation systems like Epinions.
Our goal is to design mechanisms without payments that map each graph to a
k-subset of agents to be selected and satisfy the following two constraints:
strategyproofness, i.e., agents cannot benefit from misreporting their outgoing
edges, and approximate optimality, i.e., the sum of indegrees of the selected
subset of agents is always close to optimal. Our first main result is a
surprising impossibility: for k \in {1,...,n-1}, no deterministic strategyproof
mechanism can provide a finite approximation ratio. Our second main result is a
randomized strategyproof mechanism with an approximation ratio that is bounded
from above by four for any value of k, and approaches one as k grows