Industry
Bounding the Support Size in Extensive Form Games with Imperfect Information
Schmid, Martin (Charles University in Prague) | Moravcik, Matej (Charles University in Prague) | Hladik, Milan (Charles University in Prague)
It is a well known fact that in extensive form games with perfect information, there is a Nash equilibrium with support of size one. This doesn't hold for games with imperfect information, where the size of minimal support can be larger. We present a dependency between the level of uncertainty and the minimum support size. For many games, there is a big disproportion between the game uncertainty and the number of actions available. In Bayesian extensive games with perfect information, the only uncertainty is about the type of players. In card games, the uncertainty comes from dealing the deck. In these games, we can significantly reduce the support size. Our result applies to general-sum extensive form games with any finite number of players.
Equilibria in Epidemic Containment Games
Saha, Sudip (Virginia Tech) | Adiga, Abhijin (Virginia Tech) | Vullikanti, Anil Kumar S. (Virginia Tech)
The spread of epidemics and malware is commonly modeled by diffusion processes on networks. Protective interventions such as vaccinations or installing anti-virus software are used to contain their spread. Typically, each node in the network has to decide its own strategy of securing itself, and its benefit depends on which other nodes are secure, making this a natural game-theoretic setting. There has been a lot of work on network security game models, but most of the focus has been either on simplified epidemic models or homogeneous network structure. We develop a new formulation for an epidemic containment game, which relies on the characterization of the SIS model in terms of the spectral radius of the network. We show in this model that pure Nash equilibria (NE) always exist, and can be found by a best response strategy. We analyze the complexity of finding NE, and derive rigorous bounds on their costs and the Price of Anarchy or PoA (the ratio of the cost of the worst NE to the optimum social cost) in general graphs as well as in random graph models. In particular, for arbitrary power-law graphs with exponent $\beta>2$, we show that the PoA is bounded by $O(T^{2(\beta-1)})$, where $T=\gamma/\alpha$ is the ratio of the recovery rate to the transmission rate in the SIS model. We prove that this bound is tight up to a constant factor for the Chung-Lu random power-law graph model. We study the characteristics of Nash equilibria empirically in different real communication and infrastructure networks, and find that our analytical results can help explain some of the empirical observations.
On the Structure of Synergies in Cooperative Games
Procaccia, Ariel D. (Carnegie Mellon University) | Shah, Nisarg (Carnegie Mellon University) | Tucker, Max Lee (Carnegie Mellon University)
We investigate synergy, or lack thereof, between agents in cooperative games, building on the popular notion of Shapley value. We think of a pair of agents as synergistic (resp., antagonistic) if the Shapley value of one agent when the other agent participates in a joint effort is higher (resp. lower) than when the other agent does not participate. Our main theoretical result is that any graph specifying synergistic and antagonistic pairs can arise even from a restricted class of cooperative games. We also study the computational complexity of determining whether a given pair of agents is synergistic. Finally, we use the concepts developed in the paper to uncover the structure of synergies in two real-world organizations, the European Union and the International Monetary Fund.
Regret-Based Optimization and Preference Elicitation for Stackelberg Security Games with Uncertainty
Nguyen, Thanh Hong (University of Southern California) | Yadav, Amulya (University of Southern California) | An, Bo (Nanyang Technological University) | Tambe, Milind (University of Southern California) | Boutilier, Craig (University of Toronto)
Stackelberg security games (SSGs) have been deployed in a number of real-world domains. One key challenge in these applications is the assessment of attacker payoffs, which may not be perfectly known. Previous work has studied SSGs with uncertain payoffs modeled by interval uncertainty and provided maximin-based robust solutions. In contrast, in this work we propose the use of the less conservative minimax regret decision criterion for such payoff-uncertain SSGs and present the first algorithms for computing minimax regret for SSGs. We also address the challenge of preference elicitation, using minimax regret to develop the first elicitation strategies for SSGs. Experimental results validate the effectiveness of our approaches.
Incomplete Preferences in Single-Peaked Electorates
Lackner, Martin (Vienna University of Technology)
Incomplete preferences are likely to arise in real-world preference aggregation and voting systems. This paper deals with determining whether an incomplete preference profile is single-peaked. This is essential information since many intractable voting problems become tractable for single-peaked profiles. We prove that for incomplete profiles the problem of determining single-peakedness is NP-complete. Despite this computational hardness result, we find four polynomial-time algorithms for reasonably restricted settings.
Betting Strategies, Market Selection, and the Wisdom of Crowds
Kets, Willemien (Northwestern University) | Pennock, David M. (Microsoft Research New York City) | Sethi, Rajiv (Barnard College, Columbia University) | Shah, Nisarg (Santa Fe Institute)
We investigate the limiting behavior of trader wealth and prices in a simple prediction market with a finite set of participants having heterogeneous beliefs. Traders bet repeatedly on the outcome of a binary event with fixed Bernoulli success probability. A class of strategies, including (fractional) Kelly betting and constant relative risk aversion (CRRA) are considered. We show that when traders are willing to risk only a small fraction of their wealth in any period, belief heterogeneity can persist indefinitely; if bets are large in proportion to wealth then only the most accurate belief type survives. The market price is more accurate in the long run when traders with less accurate beliefs also survive. That is, the survival of traders with heterogeneous beliefs, some less accurate than others, allows the market price to better reflect the objective probability of the event in the long run.
A Multiarmed Bandit Incentive Mechanism for Crowdsourcing Demand Response in Smart Grids
Jain, Shweta (Indian Institute of Science, Bangalore) | Narayanaswamy, Balakrishnan (University of California, San Diego) | Narahari, Y. (Indian Institute of Science, Bangalore)
Demand response is a critical part of renewable integration and energy cost reduction goals across the world. Motivated by the need to reduce costs arising from electricity shortage and renewable energy fluctuations, we propose a novel multiarmed bandit mechanism for demand response (MAB-MDR) which makes monetary offers to strategic consumers who have unknown response characteristics, to incetivize reduction in demand. Our work is inspired by a novel connection we make to crowdsourcing mechanisms. The proposed mechanism incorporates realistic features of the demand response problem including time varying and quadratic cost function. The mechanism marries auctions, that allow users to report their preferences, with online algorithms, that allow distribution companies to learn user-specific parameters. We show that MAB-MDR is dominant strategy incentive compatible, individually rational, and achieves sublinear regret. Such mechanisms can be effectively deployed in smart grids using new information and control architecture innovations and lead to welcome savings in energy costs.
Voting with Rank Dependent Scoring Rules
Goldsmith, Judy (University of Kentucky) | Lang, Jérôme (LAMSADE, CNRS - Université Paris-Dauphine) | Mattei, Nicholas (NICTA) | Perny, Patrice (LIP6, CNRS-UPMC)
Positional scoring rules in voting compute the score of an alternative by summing the scores for the alternative induced by every vote. This summation principle ensures that all votes contribute equally to the score of an alternative. We relax this assumption and, instead, aggregate scores by taking into account the rank of a score in the ordered list of scores obtained from the votes. This defines a new family of voting rules, rank-dependent scoring rules (RDSRs), based on ordered weighted average (OWA) operators, which, include all scoring rules, and many others, most of which of new. We study some properties of these rules, and show, empirically, that certain RDSRs are less manipulable than Borda voting, across a variety of statistical cultures.
Mechanism Design for Mobile Geo-Location Advertising
Gatti, Nicola (Politecnico di Milano) | Rocco, Marco (Politecnico di Milano) | Ceppi, Sofia (Microsoft Research) | Gerding, Enrico H. (University of Southampton)
Mobile geo-location advertising, where mobile ads are targeted based on a user’s location, has been identified as a key growth factor for the mobile market. As with online advertising, a crucial ingredient for their success is the development of effective economic mechanisms. An important difference is that mobile ads are shown sequentially over time and information about the user can be learned based on their movements. Furthermore, ads need to be shown selectively to prevent ad fatigue. To this end, we introduce, for the first time, a user model and suitable economic mechanisms which take these factors into account. Specifically, we design two truthful mechanisms which produce an advertisement plan based on the user’s movements. One mechanism is allocatively efficient, but requires exponential compute time in the worst case. The other requires polynomial time, but is not allocatively efficient. Finally, we experimentally evaluate the trade off between compute time and efficiency of our mechanisms.
Potential-Aware Imperfect-Recall Abstraction with Earth Mover's Distance in Imperfect-Information Games
Ganzfried, Sam (Carnegie Mellon University) | Sandholm, Tuomas (Carnegie Mellon University)
There is often a large disparity between the size of a game we wish to solve and the size of the largest instances solvable by the best algorithms; for example, a popular variant of poker has about $10^{165}$ nodes in its game tree, while the currently best approximate equilibrium-finding algorithms scale to games with around $10^{12}$ nodes. In order to approximate equilibrium strategies in these games, the leading approach is to create a sufficiently small strategic approximation of the full game, called an abstraction, and to solve that smaller game instead. The leading abstraction algorithm for imperfect-information games generates abstractions that have imperfect recall and are distribution aware, using $k$-means with the earth mover's distance metric to cluster similar states together. A distribution-aware abstraction groups states together at a given round if their full distributions over future strength are similar (as opposed to, for example, just the expectation of their strength). The leading algorithm considers distributions over future strength at the final round of the game. However, one might benefit by considering the trajectory of distributions over strength in all future rounds, not just the final round. An abstraction algorithm that takes all future rounds into account is called potential aware. We present the first algorithm for computing potential-aware imperfect-recall abstractions using earth mover's distance. Experiments on no-limit Texas Hold'em show that our algorithm improves performance over the previously best approach.