Reputation mechanisms offer an effective alternative to verification authorities for building trust in electronic markets with moral hazard. Future clients guide their business decisions by considering the feedback from past transactions; if truthfully exposed, cheating behavior is sanctioned and thus becomes irrational. It therefore becomes important to ensure that rational clients have the right incentives to report honestly. As an alternative to side-payment schemes that explicitly reward truthful reports, we show that honesty can emerge as a rational behavior when clients have a repeated presence in the market. To this end we describe a mechanism that supports an equilibrium where truthful feedback is obtained. Then we characterize the set of pareto-optimal equilibria of the mechanism, and derive an upper bound on the percentage of false reports that can be recorded by the mechanism. An important role in the existence of this bound is played by the fact that rational clients can establish a reputation for reporting honestly.

Research on agent communication languages has typically taken the speech acts paradigm as its starting point. Despite their manifest attractions, speech-act models of communication have several serious disadvantages as a foundation for communication in artificial agent systems. In particular, it has proved to be extremely difficult to give a satisfactory semantics to speech-act based agent communication languages. In part, the problem is that speech-act semantics typically make reference to the "mental states" of agents (their beliefs, desires, and intentions), and there is in general no way to attribute such attitudes to arbitrary computational agents. In addition, agent programming languages have only had their semantics formalised for abstract, stand-alone versions, neglecting aspects such as communication primitives. With respect to communication, implemented agent programming languages have tended to be rather ad hoc. This paper addresses both of these problems, by giving semantics to speech-act based messages received by an AgentSpeak agent. AgentSpeak is a logic-based agent programming language which incorporates the main features of the PRS model of reactive planning systems. The paper builds upon a structural operational semantics to AgentSpeak that we developed in previous work. The main contributions of this paper are as follows: an extension of our earlier work on the theoretical foundations of AgentSpeak interpreters; a computationally grounded semantics for (the core) performatives used in speech-act based agent communication languages; and a well-defined extension of AgentSpeak that supports agent communication.

Exact Max-SAT solvers, compared with SAT solvers, apply little inference at each node of the proof tree. Commonly used SAT inference rules like unit propagation produce a simplified formula that preserves satisfiability but, unfortunately, solving the Max-SAT problem for the simplified formula is not equivalent to solving it for the original formula. In this paper, we define a number of original inference rules that, besides being applied efficiently, transform Max-SAT instances into equivalent Max-SAT instances which are easier to solve. The soundness of the rules, that can be seen as refinements of unit resolution adapted to Max-SAT, are proved in a novel and simple way via an integer programming transformation. With the aim of finding out how powerful the inference rules are in practice, we have developed a new Max-SAT solver, called MaxSatz, which incorporates those rules, and performed an experimental investigation. The results provide empirical evidence that MaxSatz is very competitive, at least, on random Max-2SAT, random Max-3SAT, Max-Cut, and Graph 3-coloring instances, as well as on the benchmarks from the Max-SAT Evaluation 2006.

A backdoor set is a set of variables of a propositional formula such that fixing the truth values of the variables in the backdoor set moves the formula into some polynomial-time decidable class. If we know a small backdoor set we can reduce the question of whether the given formula is satisfiable to the same question for one or several easy formulas that belong to the tractable class under consideration. In this survey we review parameterized complexity results for problems that arise in the context of backdoor sets, such as the problem of finding a backdoor set of size at most k, parameterized by k. We also discuss recent results on backdoor sets for problems that are beyond NP.

This paper proposes a new randomized strategy for adaptive MCMC using Bayesian optimization. This approach applies to non-differentiable objective functions and trades off exploration and exploitation to reduce the number of potentially costly objective function evaluations. We demonstrate the strategy in the complex setting of sampling from constrained, discrete and densely connected probabilistic graphical models where, for each variation of the problem, one needs to adjust the parameters of the proposal mechanism automatically to ensure efficient mixing of the Markov chains.

In a Bayesian learning setting, the posterior distribution of a predictive model arises from a trade-off between its prior distribution and the conditional likelihood of observed data. Such distribution functions usually rely on additional hyperparameters which need to be tuned in order to achieve optimum predictive performance; this operation can be efficiently performed in an Empirical Bayes fashion by maximizing the posterior marginal likelihood of the observed data. Since the score function of this optimization problem is in general characterized by the presence of local optima, it is necessary to resort to global optimization strategies, which require a large number of function evaluations. Given that the evaluation is usually computationally intensive and badly scaled with respect to the dataset size, the maximum number of observations that can be treated simultaneously is quite limited. In this paper, we consider the case of hyperparameter tuning in Gaussian process regression. A straightforward implementation of the posterior log-likelihood for this model requires O(N^3) operations for every iteration of the optimization procedure, where N is the number of examples in the input dataset. We derive a novel set of identities that allow, after an initial overhead of O(N^3), the evaluation of the score function, as well as the Jacobian and Hessian matrices, in O(N) operations. We prove how the proposed identities, that follow from the eigendecomposition of the kernel matrix, yield a reduction of several orders of magnitude in the computation time for the hyperparameter optimization problem. Notably, the proposed solution provides computational advantages even with respect to state of the art approximations that rely on sparse kernel matrices.

Most methods for decision-theoretic online learning are based on the Hedge algorithm, which takes a parameter called the learning rate. In most previous analyses the learning rate was carefully tuned to obtain optimal worst-case performance, leading to suboptimal performance on easy instances, for example when there exists an action that is significantly better than all others. We propose a new way of setting the learning rate, which adapts to the difficulty of the learning problem: in the worst case our procedure still guarantees optimal performance, but on easy instances it achieves much smaller regret. In particular, our adaptive method achieves constant regret in a probabilistic setting, when there exists an action that on average obtains strictly smaller loss than all other actions. We also provide a simulation study comparing our approach to existing methods.

Many applications, e.g., Web service composition, complex system design, team formation, etc., rely on methods for identifying collections of objects or entities satisfying some functional requirement. Among the collections that satisfy the functional requirement, it is often necessary to identify one or more collections that are optimal with respect to user preferences over a set of attributes that describe the non-functional properties of the collection. We develop a formalism that lets users express the relative importance among attributes and qualitative preferences over the valuations of each attribute. We define a dominance relation that allows us to compare collections of objects in terms of preferences over attributes of the objects that make up the collection. We establish some key properties of the dominance relation. In particular, we show that the dominance relation is a strict partial order when the intra-attribute preference relations are strict partial orders and the relative importance preference relation is an interval order. We provide algorithms that use this dominance relation to identify the set of most preferred collections. We show that under certain conditions, the algorithms are guaranteed to return only (sound), all (complete), or at least one (weakly complete) of the most preferred collections. We present results of simulation experiments comparing the proposed algorithms with respect to (a) the quality of solutions (number of most preferred solutions) produced by the algorithms, and (b) their performance and efficiency. We also explore some interesting conjectures suggested by the results of our experiments that relate the properties of the user preferences, the dominance relation, and the algorithms.

Most classification methods provide either a prediction of class membership or an assessment of class membership probability. In the case of two-group classification the predicted probability can be described as "risk" of belonging to a "special" class . When the required output is a set of ordinal-risk groups, a discretization of the continuous risk prediction is achieved by two common methods: by constructing a set of models that describe the conditional risk function at specific points (quantile regression) or by dividing the output of an "optimal" classification model into adjacent intervals that correspond to the desired risk groups. By defining a new error measure for the distribution of risk onto intervals we are able to identify lower bounds on the accuracy of these methods, showing sub-optimality both in their distribution of risk and in the efficiency of their resulting partition into intervals. By adding a new form of constraint to the existing maximum likelihood optimization framework and by introducing a penalty function to avoid degenerate solutions, we show how existing methods can be augmented to solve the ordinal risk-group classification problem. We implement our method for logistic regression (LR) and show a numeric example.

Cooperative game theory is a branch of (micro-)economics that studies the behavior of self-interested agents in strategic settings where binding agreements among agents are possible. Our aim in this book is to present a survey of work on the computational aspects of cooperative game theory. We begin by formally defining transferable utility games in characteristic function form, and introducing key solution concepts such as the core and the Shapley value. We then discuss two major issues that arise when considering such games from a computational perspective: identifying compact representations for games, and the closely related problem of efficiently computing solution concepts for games. We survey several formalisms for cooperative games that have been proposed in the literature, including, for example, cooperative games defined on networks, as well as general compact representation schemes such as MC-nets and skill games.