In this paper, we consider the problem of network design on network games. We study the conditions on the adjacency matrix of the underlying network to design a game such that the Nash equilibrium coincides with the social optimum. We provide the examples for linear quadratic games that satisfy this condition. Furthermore, we identify conditions on properties of adjacency matrix that provide a unique solution using variational inequality formulation, and verify the robustness and continuity of the social cost under perturbations of the network. Finally we comment on individual rationality and extension of our results to large random networked games.
We study the problem of allocating indivisible goods among agents in a fair and economically efficient manner. In this context, the Nash social welfare-defined as the geometric mean of agents' valuations for their assigned bundles-stands as a fundamental measure that quantifies the extent of fairness of an allocation. Focusing on instances in which the agents' valuations have binary marginals, we develop essentially tight results for (approximately) maximizing Nash social welfare under two of the most general classes of complement-free valuations, i.e., under binary XOS and binary subadditive …
We consider dominant strategy implementation in private values settings, when agents have multi-dimensional types, the set of alternatives is finite, monetary transfers are allowed, and agents have quasi-linear utilities. We show that any implementable and neutral social choice function must be a weighted welfare maximizer if the type space of every agent is an $m$-dimensional open interval, where $m$ is the number of alternatives. When the type space of every agent is unrestricted, Roberts' theorem with neutrality \cite{Roberts79} becomes a corollary to our result. Our proof technique uses a …
Consider an unobservable $M|G|1$ queue with preemptive-resume scheduling and two priority classes. Customers are strategic and may join the premium class for a fee. We analyze the resulting equilibrium outcomes, equilibrium stability, and social welfare. We find that for service distributions with coefficient of variation greater than 1, there exists a unique and stable mixed equilibrium at low loads. We also establish a tight bound on the price of anarchy, which is $4/3$.
We study the problem of allocating indivisible goods among $n$ agents with the objective of maximizing Nash social welfare (NSW). This welfare function is defined as the geometric mean of the agents' valuations and, hence, it strikes a balance between the extremes of social welfare (arithmetic mean) and egalitarian welfare (max-min value). Nash social welfare has been extensively studied in recent years for various valuation classes. In particular, a notable negative result is known when the agents' valuations are complement-free and are specified via value queries: for XOS valuations, one nec…
This paper is merged with arXiv:2107.08965v2. We refer the reader to the full and updated version. We study the problem of allocating a set of indivisible goods among agents with 2-value additive valuations. Our goal is to find an allocation with maximum Nash social welfare, i.e., the geometric mean of the valuations of the agents. We give a polynomial-time algorithm to find a Nash social welfare maximizing allocation when the valuation functions are integrally 2-valued, i.e., each agent has a value either $1$ or $p$ for each good, for some positive integer $p$. We then extend our algorithm to…
In this paper we show that for any mechanism design problem with the objective of maximizing social welfare, the exponential mechanism can be implemented as a truthful mechanism while still preserving differential privacy. Our instantiation of the exponential mechanism can be interpreted as a generalization of the VCG mechanism in the sense that the VCG mechanism is the extreme case when the privacy parameter goes to infinity. To our knowledge, this is the first general tool for designing mechanisms that are both truthful and differentially private.
Approximating the optimal social welfare while preserving truthfulness is a well studied problem in algorithmic mechanism design. Assuming that the social welfare of a given mechanism design problem can be optimized by an integer program whose integrality gap is at most $α$, Lavi and Swamy~\cite{Lavi11} propose a general approach to designing a randomized $α$-approximation mechanism which is truthful in expectation. Their method is based on decomposing an optimal solution for the relaxed linear program into a convex combination of integer solutions. Unfortunately, Lavi and Swamy's decompositio…
Envy-free up to one good (EF1) and envy-free up to any good (EFX) are two well-known extensions of envy-freeness for the case of indivisible items. It is shown that EF1 can always be guaranteed for agents with subadditive valuations. In sharp contrast, it is unknown whether or not an EFX allocation always exists, even for four agents and additive valuations. In addition, the best approximation guarantee for EFX is $(ϕ-1) \simeq 0.61$ by Amanitidis et al.. In order to find a middle ground to bridge this gap, in this paper we suggest another fairness criterion, namely envy-freeness up to a rando…
We study the problem of allocating indivisible goods among agents that have an identical subadditive valuation over the goods. The extent of fairness and efficiency of allocations is measured by the generalized means of the values that the allocations generate among the agents. Parameterized by an exponent term $p$, generalized-mean welfares encompass multiple well-studied objectives, such as social welfare, Nash social welfare, and egalitarian welfare. We establish that, under identical subadditive valuations and in the demand oracle model, one can efficiently find a single allocation that ap…
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 th…
This paper aims to investigate how a central authority (e.g. a government) can increase social welfare in a network of markets and firms. In these networks, modeled using a bipartite graph, firms compete with each other \textit{à la} Cournot. Each firm can supply homogeneous goods in markets which it has access to. The central authority may take different policies for its aim. In this paper, we assume that the government has a budget by which it can supply some goods and inject them into various markets. We discuss how the central authority can best allocate its budget for the distribution of …
We study a participatory budgeting problem of aggregating the preferences of agents and dividing a budget over the projects. A budget division solution is a probability distribution over the projects. The main purpose of our study concerns the comparison between the system optimum solution and a fair solution. We are interested in assessing the quality of fair solutions, i.e., in measuring the system efficiency loss under a fair allocation compared to the one that maximizes (egalitarian) social welfare. This indicator is called the price of fairness. We are also interested in the performance o…
It is standard in computational social choice to analyse welfare considerations under the assumptions of normalized utilities. In this note, we summarize some common reasons for this approach. We then mention another justification which is ignored but has solid normative appeal. The central concept used in the `new' justification can also be used more widely as a social objective.
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 …
We present a $380$-approximation algorithm for the Nash Social Welfare problem with submodular valuations. Our algorithm builds on and extends a recent constant-factor approximation for Rado valuations.
We study incentive compatible mechanisms for Combinatorial Auctions where the bidders have submodular (or XOS) valuations and are budget-constrained. Our objective is to maximize the \emph{liquid welfare}, a notion of efficiency for budget-constrained bidders introduced by Dobzinski and Paes Leme (2014). We show that some of the known truthful mechanisms that best-approximate the social welfare for Combinatorial Auctions with submodular bidders through demand query oracles can be adapted, so that they retain truthfulness and achieve asymptotically the same approximation guarantees for the liqu…
Blockchain, an emerging decentralized security system, has been applied in many applications, such as bitcoin, smart grid, and Internet-of-Things. However, running the mining process may cost too much energy consumption and computing resource usage on handheld devices, which restricts the use of blockchain in mobile environments. In this paper, we consider deploying edge computing service to support the mobile blockchain. We propose an auction-based edge computing resource market of the edge computing service provider. Since there is competition among miners, the allocative externalities (posi…
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-expec…
Most analyses of manipulation of voting schemes have adopted two assumptions that greatly diminish their practical import. First, it is usually assumed that the manipulators have full knowledge of the votes of the nonmanipulating agents. Second, analysis tends to focus on the probability of manipulation rather than its impact on the social choice objective (e.g., social welfare). We relax both of these assumptions by analyzing optimal Bayesian manipulation strategies when the manipulators have only partial probabilistic information about nonmanipulator votes, and assessing the expected loss in…
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 $Ω(\sqrt{n})$ 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 …
As one of the typical settings of Federated Learning (FL), cross-silo FL allows organizations to jointly train an optimal Machine Learning (ML) model. In this case, some organizations may try to obtain the global model without contributing their local training, lowering the social welfare. In this paper, we model the interactions among organizations in cross-silo FL as a public goods game for the first time and theoretically prove that there exists a social dilemma where the maximum social welfare is not achieved in Nash equilibrium. To overcome this social dilemma, we employ the Multi-player …
We develop polynomial-time algorithms for the fair and efficient allocation of indivisible goods among $n$ agents that have subadditive valuations over the goods. We first consider the Nash social welfare as our objective and design a polynomial-time algorithm that, in the value oracle model, finds an $8n$-approximation to the Nash optimal allocation. Subadditive valuations include XOS (fractionally subadditive) and submodular valuations as special cases. Our result, even for the special case of submodular valuations, improves upon the previously best known $O(n \log n)$-approximation ratio of…
Consider the the problem of maximizing the relative social welfare of truthful single-winner voting schemes with cardinal preferences compared to the classical range voting scheme. The range voting scheme is a simple and straightforward mechanism which deterministically maximizes the social welfare. However, the scheme that is known to be non-truthful and we studied the truthful mechanism that maximize the ratio of its expected social welfare to the social welfare achieved by the range voting scheme. We provide a scheme which achieve a ratio of $Ω(m^{-2/3})$ in this paper. It is proved that th…
In load balancing problems there is a set of clients, each wishing to select a resource from a set of permissible ones, in order to execute a certain task. Each resource has a latency function, which depends on its workload, and a client's cost is the completion time of her chosen resource. Two fundamental variants of load balancing problems are {\em selfish load balancing} (aka. {\em load balancing games}), where clients are non-cooperative selfish players aimed at minimizing their own cost solely, and {\em online load balancing}, where clients appear online and have to be irrevocably assigne…
We study coverage problems in which, for a set of agents and a given threshold $T$, the goal is to select $T$ subsets (of the agents) that, while satisfying combinatorial constraints, achieve fair and efficient coverage among the agents. In this setting, the valuation of each agent is equated to the number of selected subsets that contain it, plus one. The current work utilizes the Nash social welfare function to quantify the extent of fairness and collective efficiency. We develop a polynomial-time $\left(18 + o(1) \right)$-approximation algorithm for maximizing Nash social welfare in coverag…
We consider the social welfare that can be facilitated by a constant function market maker (CFMM). When there is sufficient liquidity available to the CFMM, it can approximate the optimal social welfare when all users transactions are executed. When one of the agent has the role of proposing the block, and blockspace is scarce, they can obtain higher expected utility than otherwise identical agents. This gives a lower bound on the maximal extractable value exposed when blockspace is scarce.
The Generalized Second Price auction is the primary method by which sponsered search advertisements are sold. We study the performance of this auction under various equilibrium concepts. In particular, we demonstrate that the Bayesian Price of Anarchy is at most $2(1-1/e)^{-1} \approx 3.16$, significantly improving upon previously known bounds. Our techniques are intuitively straightforward and extend in a number of ways. For one, our result extends to a bound on the performance of GSP at coarse correlated equilibria, which captures (for example) a repeated-auction setting in which agents appl…
Participatory budgeting (PB) is a democratic process for allocating funds to projects based on the votes of members of the community. Different rules have been used to aggregate participants' votes. Past research has studied the trade-off between notions of social welfare and fairness in the multi-winner setting (a special case of participatory budgeting with identical project costs) by Lackner and Skowron (2020). But there is little understanding of this trade-off in the more general PB setting. This paper provides a theoretical and empirical study of the worst-case guarantees of several comm…
University of Illinois at Urbana-Champaign（伊利诺伊大学厄巴纳-香槟分校）
Consider the seller's problem of finding optimal prices for her $n$ (divisible) goods when faced with a set of $m$ consumers, given that she can only observe their purchased bundles at posted prices, i.e., revealed preferences. We study both social welfare and profit maximization with revealed preferences. Although social welfare maximization is a seemingly non-convex optimization problem in prices, we show that (i) it can be reduced to a dual convex optimization problem in prices, and (ii) the revealed preferences can be interpreted as supergradients of the concave conjugate of valuation, wit…
The fair division of resources is an important age-old problem that has led to a rich body of literature. At the center of this literature lies the question of whether there exist fair mechanisms despite strategic behavior of the agents. A fundamental objective function used for measuring fair outcomes is the Nash social welfare, defined as the geometric mean of the agent utilities. This objective function is maximized by widely known solution concepts such as Nash bargaining and the competitive equilibrium with equal incomes. In this work we focus on the question of (approximately) implementi…
We consider the problem of maximizing the Nash social welfare when allocating a set $\mathcal{G}$ of indivisible goods to a set $\mathcal{N}$ of agents. We study instances, in which all agents have 2-value additive valuations: The value of every agent $i \in \mathcal{N}$ for every good $j \in \mathcal{G}$ is $v_{ij} \in \{p,q\}$, for $p,q \in \mathbb{N}$, $p \le q$. Maybe surprisingly, we design an algorithm to compute an optimal allocation in polynomial time if $p$ divides $q$, i.e., when $p=1$ and $q \in \mathbb{N}$ after appropriate scaling. The problem is \classNP-hard whenever $p$ and $q$…
Spectrum auction is an effective approach to improving spectrum utilization, by leasing idle spectrum from primary users to secondary users. Recently, a few differentially private spectrum auction mechanisms have been proposed, but, as far as we know, none of them addressed the differential privacy in the setting of double spectrum auctions. In this paper, we combine the concept of differential privacy with double spectrum auction design, and present a Differentially private Double spectrum auction mechanism with approximate Social welfare Maximization (DDSM). Specifically, we design the mecha…
We study the problem of allocating a set of indivisible items to agents with additive utilities to maximize the Nash social welfare. Cole and Gkatzelis recently proved that this problem admits a constant factor approximation. We complement their result by showing that this problem is APX-hard.
Traditional selfish routing literature quantifies inefficiency in transportation systems with single-attribute costs using price-of-anarchy (PoA), and provides various technical approaches (e.g. marginal cost pricing) to improve PoA of the overall network. Unfortunately, practical transportation systems have dynamic, multi-attribute costs and the state-of-the-art technical approaches proposed in the literature are infeasible for practical deployment. In this paper, we offer a paradigm shift to selfish routing via characterizing idiosyncratic, multi-attribute costs at boundedly-rational travele…
Recent work in iterative voting has defined the additive dynamic price of anarchy (ADPoA) as the difference in social welfare between the truthful and worst-case equilibrium profiles resulting from repeated strategic manipulations. While iterative plurality has been shown to only return alternatives with at most one less initial votes than the truthful winner, it is less understood how agents' welfare changes in equilibrium. To this end, we differentiate agents' utility from their manipulation mechanism and determine iterative plurality's ADPoA in the worst- and average-cases. We first prove t…
We present a simple tatonnement process based on a decomposition method which is simple to implement and achieves the maximal social welfare, under the assumption that the utility function of each [price-taking] individual will be his own private information and need not be known by the designer. At each iteration, very little information needs to be exchanged among the individuals in order to achieve the optimal allocation. Furthermore, the given tatonnement process is always balanced at equilibrium and off equilibrium.
In this paper, we provide a transform from an $\varepsilon$-BIC mechanism into an exactly BIC mechanism without any loss of social welfare and with additive and negligible revenue loss. This is the first $\varepsilon$-BIC to BIC transformation that preserves welfare and provides negligible revenue loss. The revenue loss bound is tight given the requirement to maintain social welfare. Previous $\varepsilon$-BIC to BIC transformations preserve social welfare but have no revenue guarantee~\citep{BeiHuang11}, or suffer welfare loss while incurring a revenue loss with both a multiplicative and an a…
We discuss the design of efficient scrip systems and develop tools for empirically analyzing them. For those interested in the empirical study of scrip systems, we demonstrate how characteristics of agents in a system can be inferred from the equilibrium distribution of money. From the perspective of a system designer, we examine the effect of the money supply on social welfare and show that social welfare is maximized by increasing the money supply up to the point that the system experiences a ``monetary crash,'' where money is sufficiently devalued that no agent is willing to perform a servi…
We study the problem of fairly allocating a set of indivisible goods among agents with additive valuations. The extent of fairness of an allocation is measured by its Nash social welfare, which is the geometric mean of the valuations of the agents for their bundles. While the problem of maximizing Nash social welfare is known to be APX-hard in general, we study the effectiveness of simple, greedy algorithms in solving this problem in two interesting special cases. First, we show that a simple, greedy algorithm provides a 1.061-approximation guarantee when agents have identical valuations, even…
We study the Nash Social Welfare problem: Given $n$ agents with valuation functions $v_i:2^{[m]} \rightarrow {\mathbb R}$, partition $[m]$ into $S_1,\ldots,S_n$ so as to maximize $(\prod_{i=1}^{n} v_i(S_i))^{1/n}$. The problem has been shown to admit a constant-factor approximation for additive, budget-additive, and piecewise linear concave separable valuations; the case of submodular valuations is open. We provide a $\frac{1}{e} (1-\frac{1}{e})^2$-approximation of the {\em optimal value} for several classes of submodular valuations: coverage, sums of matroid rank functions, and certain matchi…
We study the problem of efficiently and fairly allocating a set of indivisible goods among agents with identical and additive valuations for the goods. The objective is to maximize the Nash social welfare, which is the geometric mean of the agents' valuations. While maximizing the Nash social welfare is NP-hard, a PTAS for this problem is presented by Nguyen and Rothe. The main contribution of this paper is to design a first additive PTAS for this problem, that is, we give a polynomial-time algorithm that maximizes the Nash social welfare within an additive error $\varepsilon v_{\rm max}$, whe…
We explore the impact of mutual altruism among the players belonging to the same set -- their tribe -- in a partition of all players in arbitrary strategic games upon the quality of equilibria attained. To this end, we introduce the notion of a τ-tribal extension of an arbitrary strategic game, in which players' subjective cost functions are updated to reflect this, and the associated Price of Tribalism, which is the ratio of the social welfare of the worst Nash equilibrium of the tribal extension to that of the optimum of social welfare. We show that in a well-known game of friendship cliques…
Reinforcement learning has been shown to be an effective strategy for automatically training policies for challenging control problems. Focusing on non-cooperative multi-agent systems, we propose a novel reinforcement learning framework for training joint policies that form a Nash equilibrium. In our approach, rather than providing low-level reward functions, the user provides high-level specifications that encode the objective of each agent. Then, guided by the structure of the specifications, our algorithm searches over policies to identify one that provably forms an $ε$-Nash equilibrium (wi…
It has been shown elsewhere that quantum resources can allow us to achieve a family of equilibria that can have sometimes a better social welfare, while guaranteeing privacy. We use graph games to propose a way to build non-cooperative games from graph states, and we show how to achieve an unlimited improvement with quantum advice compared to classical advice.
We consider the fundamental mechanism design problem of approximate social welfare maximization under general cardinal preferences on a finite number of alternatives and without money. The well-known range voting scheme can be thought of as a non-truthful mechanism for exact social welfare maximization in this setting. With m being the number of alternatives, we exhibit a randomized truthful-in-expectation ordinal mechanism implementing an outcome whose expected social welfare is at least an Omega(m^{-3/4}) fraction of the social welfare of the socially optimal alternative. On the other hand, …
