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17
The Exponential Mechanism for Social Welfare: Private, Truthful, and Nearly Optimal
, 2012
"... In this paper, we show that for any mechanism design problem, the exponential mechanism can be implemented as a truthful mechanism while still preserving differential privacy, if the objective is to maximize social welfare. Our instantiation of the exponential mechanism can be interpreted as a gener ..."
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Cited by 20 (2 self)
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In this paper, we show that for any mechanism design problem, the exponential mechanism can be implemented as a truthful mechanism while still preserving differential privacy, if the objective is to maximize social welfare. 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.
A truthful mechanism for value-based scheduling in cloud computing.
- In SAGT.
, 2011
"... Abstract. We introduce a novel pricing and resource allocation approach for batch jobs on cloud systems. In our economic model, users submit jobs with a value function that specifies willingness to pay as a function of job due dates. The cloud provider in response allocates a subset of these jobs, ..."
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Cited by 11 (2 self)
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Abstract. We introduce a novel pricing and resource allocation approach for batch jobs on cloud systems. In our economic model, users submit jobs with a value function that specifies willingness to pay as a function of job due dates. The cloud provider in response allocates a subset of these jobs, taking into advantage the flexibility of allocating resources to jobs in the cloud environment. Focusing on social-welfare as the system objective (especially relevant for private or in-house clouds), we construct a resource allocation algorithm which provides a small approximation factor that approaches 2 as the number of servers increases. An appealing property of our scheme is that jobs are allocated nonpreemptively, i.e., jobs run in one shot without interruption. This property has practical significance, as it avoids significant network and storage resources for checkpointing. Based on this algorithm, we then design an efficient truthful-in-expectation mechanism, which significantly improves the running complexity of black-box reduction mechanisms that can be applied to the problem, thereby facilitating its implementation in real systems.
Learning and incentives in user-generated content: Multi-armed bandits with endogenous arms.
, 2012
"... Abstract Motivated by the problem of learning the qualities of user-generated content on the Web, we study a multi-armed bandit problem where the number and success probabilities of the arms of the bandit are endogenously determined by strategic agents in response to the incentives provided by the ..."
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Cited by 7 (1 self)
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Abstract Motivated by the problem of learning the qualities of user-generated content on the Web, we study a multi-armed bandit problem where the number and success probabilities of the arms of the bandit are endogenously determined by strategic agents in response to the incentives provided by the learning algorithm. We model the contributors of user-generated content as attention-motivated agents who derive benefit when their contribution is displayed, and have a cost to quality, where a contribution's quality is the probability of its receiving a positive viewer vote. Agents strategically choose whether and what quality contribution to produce in response to the algorithm that decides how to display contributions. The algorithm, which would like to eventually only display the highest quality contributions, can only learn a contribution's quality from the viewer votes the contribution receives when displayed. The problem of inferring the relative qualities of contributions using viewer feedback, to optimize for overall viewer satisfaction over time, can then be modeled as the classic multi-armed bandit problem, except that the arms available to the bandit and therefore the achievable regret are endogenously determined by strategic agents -a good algorithm for this setting must not only quickly identify the best contributions, but also incentivize high-quality contributions to choose amongst in the first place. We first analyze the well-known UCB algorithm M UCB
A Truthful Learning Mechanism for Multi–Slot Sponsored Search Auctions with Externalities (Extended ABstract)
, 2012
"... In recent years, effective sponsored search auctions (SSAs) have been designed to incentivize advertisers (advs) to bid their truthful valuations and, at the same time, to assure both the advs and the auctioneer a non–negative utility. Nonetheless, when the click–through–rates (CTRs) of the advs are ..."
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Cited by 3 (1 self)
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In recent years, effective sponsored search auctions (SSAs) have been designed to incentivize advertisers (advs) to bid their truthful valuations and, at the same time, to assure both the advs and the auctioneer a non–negative utility. Nonetheless, when the click–through–rates (CTRs) of the advs are unknown to the auction, these mechanisms must be paired with a learning algorithm for the estimation of the CTRs. This introduces the critical problem of designing a learning mechanism able to estimate the CTRs as the same time as implementing a truthful mechanism with a revenue loss as small as possible. In this paper, we extend previous results [2, 3] to the general case of multi–slot auctions with position – and ad–dependent externalities with particular attention on the dependency of the regret on the number of slots K and the number of advertisements n.
Truthful Prioritization Schemes for Spectrum Sharing
- In 7th Workshop on the Economics of Networks, Systems and Computation (NetEcon
, 2012
"... Abstract-As the rapid expansion of smart phones and associated data-intensive applications continues, we expect to see renewed interest in dynamic prioritization schemes as a way to increase the total utility of a heterogeneous user base, with each user experiencing variable demand and value for ac ..."
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Abstract-As the rapid expansion of smart phones and associated data-intensive applications continues, we expect to see renewed interest in dynamic prioritization schemes as a way to increase the total utility of a heterogeneous user base, with each user experiencing variable demand and value for access. We adapt a recent sampled-based mechanism for resource allocation to this setting, which is more effective in aligning incentives in a setting with variable demand than an earlier method for pricing network resources due to
Which Mechanism for Sponsored Search Auctions with Externalities?
"... Sponsored search is one of the most successful applications of economic mechanisms in real life. A crucial issue is the modeling of the user behavior to provide the best target-ing of ads to each user. Experimental studies show that the click through rate of an ad is dramatically affected by both it ..."
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Sponsored search is one of the most successful applications of economic mechanisms in real life. A crucial issue is the modeling of the user behavior to provide the best target-ing of ads to each user. Experimental studies show that the click through rate of an ad is dramatically affected by both its position and the other displayed ads. However, these externalities rise severe currently open computational issues in the determination of the best allocation and of the payments, preventing their adoption in practice so far. In the present paper, we provide a number of results when the most famous externality model, the cascade model, is adopted: we design the first exact algorithm for computing the efficient allocation, we show that the previously pre-sented constant–approximation algorithm does not lead to any incentive compatible mechanism, we design a monotonic constant–approximation algorithm for finding the allocation and two different polynomial–time algorithms for the pay-ments, each with different properties, leading to incentive compatible mechanisms. Finally, we provide a thorough experimental evaluation of the presented algorithms with Yahoo! Webscope A3 dataset to identify which mechanism should be adopted in concrete applications.
A Novel Ex-Post Truthful Mechanism for Multi-Slot
"... ABSTRACT In this paper, we advance the state-of-the-art in designing ex-post truthful multi-armed bandit (MAB) mechanisms for multi-slot sponsored search auctions (SSA) through two different contributions. First, we prove two important impossibility results which rule out the possibility of an expo ..."
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ABSTRACT In this paper, we advance the state-of-the-art in designing ex-post truthful multi-armed bandit (MAB) mechanisms for multi-slot sponsored search auctions (SSA) through two different contributions. First, we prove two important impossibility results which rule out the possibility of an expost monotone MAB allocation rule having sublinear regret with time when the click through rates (CTR) of the advertisements (ads) are affected by ad-dependent externality or position-dependent externality. The above impossibility results motivate our second contribution: when the CTRs are affected by only position-dependent externality and follow click-precedence property, we design a novel ex-post truthful mechanism for multi-slot SSAs with sublinear regret. The ex-post monotone allocation rule in the proposed mechanism non-trivially generalizes the NewCB allocation rule presented by Babaioff, Sharma, and Slivkins[2]. We derive regret bounds for this allocation rule. When a strong property such as ex-post truthfulness is required, our allocation rule performs as well as the A-VCG mechanism presented by Gatti, Lazaric, and Trovò[4] and in the special case of identical slots, our allocation rule in fact outperforms the A-VCG mechanism and has a regret of O √ T with time.
VCG-equivalent in Expectation Mechanism: General Framework for Constructing Iterative Combinatorial Auction Mechanisms
"... ABSTRACT In this paper, we develop a new class of iterative mechanisms called a VCG-equivalent in expectation mechanism. Iterative auctions are preferred over their sealed-bid counterparts in practical settings, since they can avoid full revelation of type information. However, to guarantee that si ..."
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ABSTRACT In this paper, we develop a new class of iterative mechanisms called a VCG-equivalent in expectation mechanism. Iterative auctions are preferred over their sealed-bid counterparts in practical settings, since they can avoid full revelation of type information. However, to guarantee that sincere strategies are an ex post equilibrium, the mechanism needs to achieve exactly the same outcome as the Vickrey-ClarkeGroves (VCG) mechanism. To guarantee that a mechanism is VCG-equivalent, it inevitably asks an irrelevant query, in which a participant has no incentive to answer the query sincerely. Such an irrelevant query causes unnecessary leakage of private information and a different incentive issue. In a VCG-equivalent in expectation mechanism, the mechanism achieves the same allocation as VCG, but the transfers are the same as VCG only in expectation. We show that in a VCG-equivalent in expectation mechanism, sincere strategies constitute a sequential equilibrium. Also, we develop a general procedure for constructing a VCG-equivalent in expectation mechanism that does not ask any irrelevant query. To demonstrate the applicability of this idea in a practical application, we develop a VCG-equivalent in expectation mechanism that can be applied to the Japanese 4G spectrum auction.