Efficiency of Truthful and Symmetric Mechanisms in One-sided Matching

We study the efficiency (in terms of social welfare) of truthful and symmetric mechanisms in one-sided matching problems with {\em dichotomous preferences} and {\em normalized von Neumann-Morgenstern preferences}. We are particularly interested in the well-known {\em Random Serial Dictatorship} mechanism. For dichotomous preferences, we first show that truthful, symmetric and optimal mechanisms exist if intractable mechanisms are allowed. We then provide a connection to online bipartite matching. Using this connection, it is possible to design truthful, symmetric and tractable mechanisms that extract 0.69 of the maximum social welfare, which works under assumption that agents are not adversarial. Without this assumption, we show that Random Serial Dictatorship always returns an assignment in which the expected social welfare is at least a third of the maximum social welfare. For normalized von Neumann-Morgenstern preferences, we show that Random Serial Dictatorship always returns an assignment in which the expected social welfare is at least \frac{1}{e}\frac{\nu(\opt)^2}{n}, where \nu(\opt) is the maximum social welfare and $n$ is the number of both agents and items. On the hardness side, we show that no truthful mechanism can achieve a social welfare better than \frac{\nu(\opt)^2}{n}.Comment: 13 pages, 1 figur

Cake Cutting Algorithms for Piecewise Constant and Piecewise Uniform Valuations

Cake cutting is one of the most fundamental settings in fair division and mechanism design without money. In this paper, we consider different levels of three fundamental goals in cake cutting: fairness, Pareto optimality, and strategyproofness. In particular, we present robust versions of envy-freeness and proportionality that are not only stronger than their standard counter-parts but also have less information requirements. We then focus on cake cutting with piecewise constant valuations and present three desirable algorithms: CCEA (Controlled Cake Eating Algorithm), MEA (Market Equilibrium Algorithm) and CSD (Constrained Serial Dictatorship). CCEA is polynomial-time, robust envy-free, and non-wasteful. It relies on parametric network flows and recent generalizations of the probabilistic serial algorithm. For the subdomain of piecewise uniform valuations, we show that it is also group-strategyproof. Then, we show that there exists an algorithm (MEA) that is polynomial-time, envy-free, proportional, and Pareto optimal. MEA is based on computing a market-based equilibrium via a convex program and relies on the results of Reijnierse and Potters [24] and Devanur et al. [15]. Moreover, we show that MEA and CCEA are equivalent to mechanism 1 of Chen et. al. [12] for piecewise uniform valuations. We then present an algorithm CSD and a way to implement it via randomization that satisfies strategyproofness in expectation, robust proportionality, and unanimity for piecewise constant valuations. For the case of two agents, it is robust envy-free, robust proportional, strategyproof, and polynomial-time. Many of our results extend to more general settings in cake cutting that allow for variable claims and initial endowments. We also show a few impossibility results to complement our algorithms.Comment: 39 page

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

Pareto Optimal Matchings in Many-to-Many Markets with Ties

We consider Pareto-optimal matchings (POMs) in a many-to-many market of applicants and courses where applicants have preferences, which may include ties, over individual courses and lexicographic preferences over sets of courses. Since this is the most general setting examined so far in the literature, our work unifies and generalizes several known results. Specifically, we characterize POMs and introduce the \emph{Generalized Serial Dictatorship Mechanism with Ties (GSDT)} that effectively handles ties via properties of network flows. We show that GSDT can generate all POMs using different priority orderings over the applicants, but it satisfies truthfulness only for certain such orderings. This shortcoming is not specific to our mechanism; we show that any mechanism generating all POMs in our setting is prone to strategic manipulation. This is in contrast to the one-to-one case (with or without ties), for which truthful mechanisms generating all POMs do exist

Social welfare in one-sided matchings: Random priority and beyond

We study the problem of approximate social welfare maximization (without money) in one-sided matching problems when agents have unrestricted cardinal preferences over a finite set of items. Random priority is a very well-known truthful-in-expectation mechanism for the problem. We prove that the approximation ratio of random priority is Theta(n^{-1/2}) while no truthful-in-expectation mechanism can achieve an approximation ratio better than O(n^{-1/2}), where n is the number of agents and items. Furthermore, we prove that the approximation ratio of all ordinal (not necessarily truthful-in-expectation) mechanisms is upper bounded by O(n^{-1/2}), indicating that random priority is asymptotically the best truthful-in-expectation mechanism and the best ordinal mechanism for the problem.Comment: 13 page

Efficient Equilibria in Polymatrix Coordination Games

We consider polymatrix coordination games with individual preferences where every player corresponds to a node in a graph who plays with each neighbor a separate bimatrix game with non-negative symmetric payoffs. In this paper, we study $\alpha$-approximate $k$-equilibria of these games, i.e., outcomes where no group of at most $k$ players can deviate such that each member increases his payoff by at least a factor $\alpha$. We prove that for $\alpha \ge 2$ these games have the finite coalitional improvement property (and thus $\alpha$-approximate $k$-equilibria exist), while for $\alpha < 2$ this property does not hold. Further, we derive an almost tight bound of $2\alpha(n-1)/(k-1)$ on the price of anarchy, where $n$ is the number of players; in particular, it scales from unbounded for pure Nash equilibria ($k = 1)$ to $2\alpha$ for strong equilibria ($k = n$). We also settle the complexity of several problems related to the verification and existence of these equilibria. Finally, we investigate natural means to reduce the inefficiency of Nash equilibria. Most promisingly, we show that by fixing the strategies of $k$ players the price of anarchy can be reduced to $n/k$ (and this bound is tight)

Precise Complexity of the Core in Dichotomous and Additive Hedonic Games

Hedonic games provide a general model of coalition formation, in which a set of agents is partitioned into coalitions, with each agent having preferences over which other players are in her coalition. We prove that with additively separable preferences, it is $\Sigma_2^p$-complete to decide whether a core- or strict-core-stable partition exists, extending a result of Woeginger (2013). Our result holds even if valuations are symmetric and non-zero only for a constant number of other agents. We also establish $\Sigma_2^p$-completeness of deciding non-emptiness of the strict core for hedonic games with dichotomous preferences. Such results establish that the core is much less tractable than solution concepts such as individual stability.Comment: ADT-2017, 15 pages in LNCS styl

Truthful Facility Assignment with Resource Augmentation: An Exact Analysis of Serial Dictatorship

We study the truthful facility assignment problem, where a set of agents with private most-preferred points on a metric space are assigned to facilities that lie on the metric space, under capacity constraints on the facilities. The goal is to produce such an assignment that minimizes the social cost, i.e., the total distance between the most-preferred points of the agents and their corresponding facilities in the assignment, under the constraint of truthfulness, which ensures that agents do not misreport their most-preferred points. We propose a resource augmentation framework, where a truthful mechanism is evaluated by its worst-case performance on an instance with enhanced facility capacities against the optimal mechanism on the same instance with the original capacities. We study a very well-known mechanism, Serial Dictatorship, and provide an exact analysis of its performance. Although Serial Dictatorship is a purely combinatorial mechanism, our analysis uses linear programming; a linear program expresses its greedy nature as well as the structure of the input, and finds the input instance that enforces the mechanism have its worst-case performance. Bounding the objective of the linear program using duality arguments allows us to compute tight bounds on the approximation ratio. Among other results, we prove that Serial Dictatorship has approximation ratio $g/(g-2)$ when the capacities are multiplied by any integer $g \geq 3$. Our results suggest that even a limited augmentation of the resources can have wondrous effects on the performance of the mechanism and in particular, the approximation ratio goes to 1 as the augmentation factor becomes large. We complement our results with bounds on the approximation ratio of Random Serial Dictatorship, the randomized version of Serial Dictatorship, when there is no resource augmentation

A Game of Attribute Decomposition for Software Architecture Design

Attribute-driven software architecture design aims to provide decision support by taking into account the quality attributes of softwares. A central question in this process is: What architecture design best fulfills the desirable software requirements? To answer this question, a system designer needs to make tradeoffs among several potentially conflicting quality attributes. Such decisions are normally ad-hoc and rely heavily on experiences. We propose a mathematical approach to tackle this problem. Game theory naturally provides the basic language: Players represent requirements, and strategies involve setting up coalitions among the players. In this way we propose a novel model, called decomposition game, for attribute-driven design. We present its solution concept based on the notion of cohesion and expansion-freedom and prove that a solution always exists. We then investigate the computational complexity of obtaining a solution. The game model and the algorithms may serve as a general framework for providing useful guidance for software architecture design. We present our results through running examples and a case study on a real-life software project.Comment: 23 pages, 5 figures, a shorter version to appear at 12th International Colloquium on Theoretical Aspects of Computing (ICTAC 2015

Social Welfare in One-Sided Matching Mechanisms

We study the Price of Anarchy of mechanisms for the well-known problem of one-sided matching, or house allocation, with respect to the social welfare objective. We consider both ordinal mechanisms, where agents submit preference lists over the items, and cardinal mechanisms, where agents may submit numerical values for the items being allocated. We present a general lower bound of $\Omega(\sqrt{n})$ on the Price of Anarchy, which applies to all mechanisms. We show that two well-known mechanisms, Probabilistic Serial, and Random Priority, achieve a matching upper bound. We extend our lower bound to the Price of Stability of a large class of mechanisms that satisfy a common proportionality property, and show stronger bounds on the Price of Anarchy of all deterministic mechanisms