The use of simple auction mechanisms like the GSP in online advertising can lead to significant loss of efficiency and revenue when advertisers have rich preferences — even simple forms of expressiveness like budget constraints can lead to suboptimal outcomes. While the optimal allocation of inventory can provide greater efficiency and revenue, natural formulations of the underlying optimization problems grow exponentially in the number of features of interest, presenting a key practical challenge. To address this problem, we propose a means for automatically partitioning inventory into abstract channels so that the least relevant features are ignored. Our approach, based on LP/MIP column and constraint generation, dramatically reduces the size of the problem, thus rendering optimization computationally feasible at practical scales. Our algorithms allow for principled tradeoffs between tractability and solution quality. Numerical experiments demonstrate the computational practicality of our approach as well as the quality of the resulting abstractions.

Law enforcement agencies frequently must allocate limited resources to protect targets embedded in a network, such as important buildings in a city road network. Since intelligent attackers may observe and exploit patterns in the allocation, it is crucial that the allocations be randomized. We cast this problem as an attacker-defender Stackelberg game: the defender’s goal is to obtain an optimal mixed strategy for allocating resources. The defender’s strategy space is exponential in the number of resources, and the attacker’s exponential in the network size. Existing algorithms are therefore useless for all but the smallest networks. We present a solution approach based on two key ideas: (i) A polynomial-sized game model obtained via an approximation of the strategy space, solved efficiently using a linear program; (ii) Two efficient techniques that map solutions from the approximate game to the original, with proofs of correctness under certain assumptions. We present in-depth experimental results, including an evaluation on part of the Mumbai road network.

In many auctions, agents bid more aggressively than self-interest would prescribe. This can be explained by spite, where the agent's utility not only increases in the agent's surplus but also decreases as the other bidders' surpluses increase. Spite can stem from long-term benefits from making competitors worse off and from inherent psychological effects. There have been important recent game-theoretic analyses of spiteful bidding assuming all agents are equally spiteful. We present, to our knowledge, the first auction analysis in the more realistic setting where bidders may be spiteful to different extents. We show that the equilibrium bidding function can still be written in the same form — except that the spite factor is replaced by an expressed spite factor. This leads to bidders expressing spites that are higher or lower than their true spite depending on others' spite. Perhaps surprisingly, in the two-bidder case, the mapping from true spite to expressed spite is the same across all common auction mechanisms. Furthermore, even with two bidders, important properties of symmetric-spite settings cease to hold: the allocation can be inefficient and the revenue ranking may reverse between first- and second-price auctions. We also show that in sealed-bid auctions under asymmetric valuation distributions, there can be a "bargaining problem" in selecting bids. Finally, we study the generalization where agents can have different extents of spite toward different other bidders.

In distributed work systems, individual users perform work for other users. A significant challenge in these systems is to provide proper incentives for users to contribute as much work as they consume, even when monitoring is not possible. We formalize the problem of designing "incentive-compatible accounting mechanisms" that measure the net contributions of users, despite relying on voluntary reports. We introduce the Drop-Edge Mechanism that removes any incentive for a user to manipulate via misreports about work contributed or consumed. We prove that Drop-Edge provides a good approximation to a user's net contribution, and is accurate in the limit as the number of users grows. We demonstrate very good welfare properties in simulation compared to an existing, manipulable mechanism. In closing, we show the power of sybil attacks in accounting mechanisms and discuss our ongoing work, including a real-world implementation and evaluation of the Drop-Edge Mechanism in a BitTorrent client.

Coalition formation is a fundamental problem in multi-agent systems. In characteristic function games (CFGs), each coalition C of agents is assigned a value indicating the joint utility those agents will receive if C is formed. CFGs are an important class of cooperative games; however, determining the optimal coalition structure, partitioning of the agents into a set of coalitions that maximizes the social welfare, currently requires O (3 n ) time for n agents. In light of the high computational complexity of the coalition structure generation problem, a natural approach is to relax the optimality requirement and attempt to find an approximate solution that is guaranteed to be close to optimal. Unfortunately, it has been shown that guaranteeing a solution within any factor of the optimal requires Ω(2 n ) time. Thus, the best that can be hoped for is to find an algorithm that returns solutions that are guaranteed to be as close to the optimal as possible, in as close to O (2 n ) time as possible. This paper contributes to the state-of-the-art by presenting an algorithm that achieves better quality guarantees with lower worst case running times than all currently existing algorithms. Our approach is also the first algorithm to guarantee a constant factor approximation ratio, 1/8, in the optimal time of O (2 n . The previous best ratio obtainable in O (2 n ) was 2/ n .

This paper investigates search techniques for multi-agent settings in which the most suitable agent, according to given criteria, needs to be found. In particular, it considers the case where the searching agent incurs a cost for learning the value of an agent and the goal is to minimize the expected overall cost of search by iteratively increasing the extent of search. This kind of search is applicable to various domains, including auctions, first responders, and sensor networks. Using an innovative transformation of the extents-based sequence to a probability-based one, the optimal sequence is proved to consist of either a single search iteration or an infinite sequence of increasing search extents. This leads to a simplified characterization of the the optimal search sequence from which it can be derived. This method is also highly useful for legacy economic-search applications, where all agents are considered suitable candidates and the goal is to optimize the search process as a whole. The effectiveness of the method for both best-valued search and economic search is demonstrated numerically using a synthetic environment.

Recent work has demonstrated that several trust and reputation models can be exploited by malicious agents with cyclical behaviour. In each cycle, the malicious agent with cyclical behaviour first regains a high trust value after a number of cooperations and then abuses its gained trust by engaging in a bad transaction. Using a game theoretic formulation, Salehi-Abari and White have proposed the AER model that is resistant to exploitation by cyclical behaviour. Their simulation results imply that FIRE, Regret, and a model due to Yu and Singh, can always be exploited with an appropriate value for the period of cyclical behaviour. Furthermore, their results demonstrate that this is not so for the proposed adaptive scheme. This paper provides a mathematical analysis of the properties of five trust models when faced with cyclical behaviour of malicious agents. Three main results are proven. First, malicious agents can always select a cycle period that allows them to exploit the four models of FIRE, Regret, Probabilistic models, and Yu and Singh indefinitely. Second, malicious agents cannot select a single, finite cycle period that allows them to exploit the AER model forever. Finally, the number of cooperations required to achieve a given trust value increases monotonically with each cycle. In addition to the mathematical analysis, this paper empirically shows how malicious agents can use the theorems proven in this paper to mount efficient attacks on trust models.

The Gibbard-Satterthwaite Theorem asserts that any reasonable voting rule cannot be strategyproof. A large body of research in AI deals with circumventing this theorem via computational considerations; the goal is to design voting rules that are computationally hard, in the worst-case, to manipulate. However, recent work indicates that the prominent voting rules are usually easy to manipulate. In this paper, we suggest a new CS-oriented approach to circumventing Gibbard-Satterthwaite, using randomization and approximation. Specifically, we wish to design strategyproof randomized voting rules that are close, in a standard approximation sense, to prominent score-based (deterministic) voting rules. We give tight lower and upper bounds on the approximation ratio achievable via strategyproof randomized rules with respect to positional scoring rules, Copeland, and Maximin.

Computer agents are increasingly deployed in settings in which they make decisions with people, such as electronic commerce, collaborative interfaces, and cognitive assistants. However, the scientific evaluation of computational strategies for human-computer decision-making is a costly process, involving time, effort and personnel. This paper investigates the use of Peer Designed Agents (PDA) — computer agents developed by human subjects — as a tool for facilitating the evaluation process of automatic negotiators that were developed by researchers. It compared the performance between automatic negotiators that interacted with PDAs to automatic negotiators that interacted with actual people in different domains. The experiments included more than 300 human subjects and 50 PDAs developed by students. Results showed that the automatic negotiators outperformed PDAs in the same situations in which they outperformed people, and that on average, they exhibited the same measure of generosity towards their negotiation partners. These patterns were significant for all types of domains, and for all types of automated negotiators, despite the fact that there were individual differences between the behavior of PDAs and people. The study thus provides an empirical proof that PDAs can alleviate the evaluation process of automatic negotiators, and facilitate their design.

We present the design and analysis of an approximately incentive-compatible combinatorial auction. In just a single run, the auction is able to extract enough value information from bidders to compute approximate truth-inducing payments. This stands in contrast to current auction designs that need to repeat the allocation computation as many times as there are bidders to achieve incentive compatibility. The auction is formulated as a kernel method, which allows for flexibility in choosing the price structure via a kernel function. Our main result characterizes the extent to which our auction is incentive-compatible in terms of the complexity of the chosen kernel function. Our analysis of the auction's properties is based on novel insights connecting the notion of stability in statistical learning theory to that of universal competitive equilibrium in the auction literature.