Budget-Feasible Mechanism Design for Non-Monotone Submodular Objectives: Offline and Online

The framework of budget-feasible mechanism design studies procurement auctions where the auctioneer (buyer) aims to maximize his valuation function subject to a hard budget constraint. We study the problem of designing truthful mechanisms that have good approximation guarantees and never pay the participating agents (sellers) more than the budget. We focus on the case of general (non-monotone) submodular valuation functions and derive the first truthful, budget-feasible and $O(1)$-approximate mechanisms that run in polynomial time in the value query model, for both offline and online auctions. Prior to our work, the only $O(1)$-approximation mechanism known for non-monotone submodular objectives required an exponential number of value queries. At the heart of our approach lies a novel greedy algorithm for non-monotone submodular maximization under a knapsack constraint. Our algorithm builds two candidate solutions simultaneously (to achieve a good approximation), yet ensures that agents cannot jump from one solution to the other (to implicitly enforce truthfulness). Ours is the first mechanism for the problem where---crucially---the agents are not ordered with respect to their marginal value per cost. This allows us to appropriately adapt these ideas to the online setting as well. To further illustrate the applicability of our approach, we also consider the case where additional feasibility constraints are present. We obtain $O(p)$-approximation mechanisms for both monotone and non-monotone submodular objectives, when the feasible solutions are independent sets of a $p$-system. With the exception of additive valuation functions, no mechanisms were known for this setting prior to our work. Finally, we provide lower bounds suggesting that, when one cares about non-trivial approximation guarantees in polynomial time, our results are asymptotically best possible.Comment: Accepted to EC 201

Budget-feasible mechanism design for non-monotone submodular objectives: Offline and online

The framework of budget-feasible mechanism design studies procurement auctions where the auctioneer (buyer) aims to maximize his valuation function subject to a hard budget constraint. We study the problem of designing truthful mechanisms that have good approximation guarantees and never pay the participating agents (sellers) more than the budget. We focus on the case of general (non-monotone) submodular valuation functions and derive the first truthful, budget-feasible and O(1)-approximation mechanisms that run in polynomial time in the value query model, for both offline and online auctions. Since the introduction of the problem by Singer [40], obtaining efficient mechanisms for objectives that go beyond the class of monotone submodular functions has been elusive. Prior to our work, the only O(1)-approximation mechanism known for non-monotone submodular objectives required an exponential number of value queries. At the heart of our approach lies a novel greedy algorithm for non-monotone submodular maximization under a knapsack constraint. Our algorithm builds two candidate solutions simultaneously (to achieve a good approximation), yet ensures that agents cannot jump from one solution to the other (to implicitly enforce truthfulness). Ours is the first mechanism for the problem where-crucially-the agents are not ordered according to their marginal value per cost. This allows us to appropriately adapt these ideas to the online setting as well. To further illustrate the applicability of our approach, we also consider the case where additional feasibility constraints are present, e.g., at most k agents can be selected. We obtain O(p)-approximation mechanisms for both monotone and non-monotone submodular objectives, when the feasible solutions are independent sets of a p-system. With the exception of additive valuation functions, no mechanisms were known for this setting prior to our work. Finally, we provide lower bounds suggesting that, when one cares about non-trivial approximation guaran

Fairness, Learning and Efficiency in Markets with Budgeted Agents

In almost all online markets with monetary transactions, the participants have a limited budget which restricts their ability to purchase their desired commodities. Models from mechanism design, algorithm design and auction theory which study these online markets often ignore this important constraint. This dissertation presents a deep study of such markets with budget limited agents, using theoretical models as well as data from real world auction markets. In chapter 2, we study the problem of a budget limited buyer who wants to buy a set of commodities, each from a different seller, to maximize her value. The budget feasible mechanism design problem aims to design a mechanism which incentivizes the sellers to truthfully report their cost, and maximizes the buyer's value while guaranteeing that the total payment does not exceed her budget. Such budget feasible mechanisms can model a principal in a crowdsourcing market interested in recruiting a set of workers (sellers) to accomplish a task for her. We present simple and close to optimum mechanisms for this problem when the valuation of the buyer is a monotone submodular function. In chapter 3, we present a deep study of the behavior of real estate agents in the new online advertising platform provided by Zillow. We analyze behavior of the agents through time using the provided data from Zillow. We use a no-regret based algorithm to estimate the value of agents for impression opportunities. We observe that a significant proportion of bidders initially do not use the bid recommendation tool which has been provided by Zillow. This proportion gradually declines over time. We argue that the agents gradually trust the system by learning that the platform adequately optimizes bids on their behalf and the increased effort of experimenting with alternative bids is not worth the potential increase in their net utility. In chapter 4, we show equilibria of markets with budget limited agents can be used to achieve fairness for problems of matching without money with agents who have preferences over commodities. A unit budget with artificial money is given to each agent for achieving fairness. We also provide polynomial time algorithms for finding the equilibria of these markets