Algorithmic Game Theory

Author: Noam Nisan; Tim Roughgarden; Eva Tardos  

Publisher: Cambridge University Press‎

Publication year: 2007

E-ISBN: 9780511352942

P-ISBN(Paperback): 9780521872829

Subject: O225 Game (Game)

Keyword: 对策论(博弈论)

Language: ENG

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Algorithmic Game Theory

Description

In recent years game theory has had a substantial impact on computer science, especially on Internet- and e-commerce-related issues. Algorithmic Game Theory, first published in 2007, develops the central ideas and results of this exciting area in a clear and succinct manner. More than 40 of the top researchers in this field have written chapters that go from the foundations to the state of the art. Basic chapters on algorithmic methods for equilibria, mechanism design and combinatorial auctions are followed by chapters on important game theory applications such as incentives and pricing, cost sharing, information markets and cryptography and security. This definitive work will set the tone of research for the next few years and beyond. Students, researchers, and practitioners alike need to learn more about these fascinating theoretical developments and their widespread practical application.

Chapter

3.3 Equilibria via Labeled Polytopes

3.4 The Lemke--Howson Algorithm

3.5 Integer Pivoting

3.6 Degenerate Games

3.7 Extensive Games and Their Strategic Form

3.8 Subgame Perfect Equilibria

3.9 Reduced Strategic Form

3.10 The Sequence Form

3.11 Computing Equilibria with the Sequence Form

3.12 Further Reading

3.13 Discussion and Open Problems

Bibliography

Chapter 4 Learning, Regret Minimization, and Equilibria

4.1 Introduction

4.2 Model and Preliminaries

4.3 External Regret Minimization

4.3.1 Warmup: Greedy and Randomized-Greedy Algorithms

4.3.2 Randomized Weighted Majority Algorithm

4.3.3 Polynomial Weights Algorithm

4.3.4 Lower Bounds

4.4 Regret Minimization and Game Theory

4.4.1 Game Theoretic Model

4.4.2 Constant Sum Games and External Regret Minimization

4.4.3 Correlated Equilibrium and Swap Regret Minimization

4.4.4 Dominated Strategies

4.5 Generic Reduction from External to Swap Regret

4.6 The Partial Information Model

4.7 On Convergence of Regret-Minimizing Strategies to Nash Equilibrium in Routing Games

4.7.1 Current Research Directions

4.8 Notes

Bibliography

Chapter 5 Combinatorial Algorithms for Market Equilibria

5.1 Introduction

5.2 Fisher's Linear Case and the Eisenberg--Gale Convex Program

5.3 Checking If Given Prices Are Equilibrium Prices

5.3.1 The Network N( p)

5.4 Two Crucial Ingredients of the Algorithm

5.5 The Primal-Dual Schema in the Enhanced Setting

5.6 Tight Sets and the Invariant

5.7 Balanced Flows

5.7.1 Finding a Balanced Flow

5.8 The Main Algorithm

5.9 Finding Tight Sets

5.10 Running Time of the Algorithm

5.11 The Linear Case of the Arrow--Debreu Model

5.12 An Auction-Based Algorithm

5.13 Resource Allocation Markets

5.14 Algorithm for Single-Source Multiple-Sink Markets

5.14.1 Finding the Next Cut

5.15 Discussion and Open Problems

Acknowledgments

Bibliography

Chapter 6 Computation of Market Equilibria by Convex Programming

6.1 Introduction

6.1.1 Definitions: Models and Equilibrium

6.1.2 The Tâtonnement Process

6.1.3 Approximate Equilibria

6.1.4 Gross Substitutability

6.1.5 Special Forms of the Utility Functions

6.1.6 Equilibrium vs Optimization

6.1.7 The Fisher Model

6.1.8 Overview

6.2 Fisher Model with Homogeneous Consumers

6.3 Exchange Economies Satisfying WGS

6.3.1 Computational Results

Two Useful Transformations

The Discrete Tâtonnement Process

Analysis of Convergence

6.4 Specific Utility Functions

6.4.1 Convex Programs for Linear Exchange Economies

6.4.2 Convex Programs for CES Exchange Economies

6.5 Limitations

6.5.1 Multiple Disconnected Equilibria

6.5.2 Hardness for the Class PPAD

6.6 Models with Production

6.6.1 Inequalities Characterizing Equilibrium

6.6.2 Convex Programs for Specific Functions

6.7 Bibliographic Notes

Bibliography

Chapter 7 Graphical Games

7.1 Introduction

7.2 Preliminaries

7.3 Computing Nash Equilibria in Tree Graphical Games

7.3.1 An Approximation Algorithm

7.3.2 An Exact Algorithm

7.3.3 Extensions: NashProp and Beyond

7.4 Graphical Games and Correlated Equilibria

7.4.1 Expected Payoff and Local Neighborhood Equivalence

7.4.2 Correlated Equilibria and Markov Nets

7.4.3 Algorithms for Correlated Equilibria in Graphical Games

7.5 Graphical Exchange Economies

7.6 Open Problems and Future Research

7.7 Bibliographic Notes

Acknowledgments

Bibliography

Chapter 8 cryptography and game theory

8.1 Cryptographic Notions and Settings

8.1.1 Security of Multiparty Computations

8.1.2 Existing Results for Multiparty Computation

8.2 Game Theory Notions and Settings

8.3 Contrasting MPC and Games

8.4 Cryptographic Influences on Game Theory

8.4.1 New Notions

8.4.2 Removing the Mediator in Correlated Equilibrium

8.4.3 Stronger Equilibria

8.5 Game Theoretic Influences on Cryptography

8.5.1 Noncooperatively Computable Functions

8.5.2 Rational Multiparty Computation

8.6 Conclusions

8.7 Notes

Acknowledgments

Bibliography

Part II Algorithmic Mechanism Design

Chapter 9 introduction to mechanism design (for computer scientists)

9.1 Introduction

9.2 Social Choice

9.2.1 Condorcet’s Paradox

9.2.2 Voting Methods

9.2.3 Arrow’s Theorem

9.2.4 The Gibbard–Satterthwaite Theorem

9.3 Mechanisms with Money

9.3.1 Vickrey’s Second Price Auction

9.3.2 Incentive Compatible Mechanisms

9.3.3 Vickrey–Clarke–Groves Mechanisms

9.3.4 Clarke Pivot Rule

9.4 Implementation in Dominant Strategies

9.4.1 Games with Strict Incomplete Information

9.4.2 Mechanisms

9.4.3 The Revelation Principle

9.5 Characterizations of Incentive Compatible Mechanisms

9.5.1 Direct Characterization

9.5.2 Weak Monotonicity

9.5.3 Weighted VCG

9.5.4 Single-Parameter Domains

9.5.5 Uniqueness of Prices

9.5.6 Randomized Mechanisms

9.6 Bayesian--Nash Implementation

9.6.1 Bayesian–Nash Equilibrium

9.6.2 First Price Auction

9.6.3 Revenue Equivalence

9.7 Further Models

9.7.1 Risk Aversion

9.7.2 Interdependent Values

9.7.3 Complete Information Models

9.7.4 Hidden Actions

9.8 Notes

Acknowledgments

Bibliography

Chapter 10 Mechanism Design without Money

10.1 Introduction

10.2 Single-Peaked Preferences over Policies

10.2.1 Rules

10.2.2 Application to Public Good Cost Sharing

10.3 House Allocation Problem

10.4 Stable Matchings

10.4.1 A Lattice Formulation

10.4.2 The LP Formulation

10.4.3 Extensions

10.5 Future Directions

10.6 Notes and References

Bibliography

Chapter 11 Combinatorial Auctions

11.1 Introduction

11.1.1 Problem Statement

11.1.2 Some Applications

11.1.3 Structure of This Chapter

11.2 The Single-Minded Case

11.2.1 Computational Complexity of Allocation

11.2.2 An Incentive-Compatible Approximation Mechanism

11.3 Walrasian Equilibrium and the LP Relaxation

11.3.1 The Linear Programming Relaxation and Its Dual

11.3.2 Walrasian Equilibrium

11.4 Bidding Languages

11.4.1 Elements of Representation: Atoms, OR, and XOR

11.4.2 Combinations of OR and XOR

11.4.3 Dummy Items

11.5 Iterative Auctions: The Query Model

11.5.1 Types of Queries

11.5.2 Solving the Linear Program

11.5.3 Approximating the Social Welfare

11.6 Communication Complexity

11.6.1 The Model and Statement of Lower Bound

11.6.2 The Proof

11.7 Ascending Auctions

11.7.1 Ascending Item-Price Auctions

11.7.2 Ascending Bundle-Price Auctions

11.8 Bibliographic Notes

Acknowledgments

Bibliography

Chapter 12 Computationally Efficient Approximation Mechanisms

12.1 Introduction

12.2 Single-Dimensional Domains: Job Scheduling

12.2.1 A Monotone Algorithm for the Job Scheduling Problem

12.3 Multidimensional Domains: Combinatorial Auctions

12.3.1 A General Overview of Truthful Combinatorial Auctions

12.4 Impossibilities of Dominant Strategy Implementability

12.5 Alternative Solution Concepts

12.6 Bibliographic Notes

Bibliography

Chapter 13 Profit Maximization in Mechanism Design

13.1 Introduction

13.2 Bayesian Optimal Mechanism Design

13.2.1 Virtual Valuations, Virtual Surplus, and Expected Profit

13.2.2 Truthfulness of Virtual Surplus Maximization

13.2.3 Applications of Myerson’s Optimal Mechanism

13.3 Prior-Free Approximations to the Optimal Mechanism

13.3.1 Empirical Distributions

13.3.2 Random Sampling

13.3.3 Convergence Rates

13.4 Prior-Free Optimal Mechanism Design

13.4.1 Competitive Framework

13.4.2 A Competitive Digital Goods Auctions

13.4.3 Lower Bounds

13.4.4 The Digital Goods Auction Decision Problem

13.4.5 Reduction to the Decision Problem

13.4.6 Consensus Estimation and Truthfulness with High Probability

13.5 Frugality

13.6 Conclusions and Other Research Directions

13.7 Notes

Chapter 14 distributed algorithmic mechanism design

14.1 Introduction

14.2 Two Examples of DAMD

14.2.1 Distributed Implementation of VCG

14.2.2 Sharing the Cost of a Multicast Transmission

14.3 Interdomain Routing

14.3.1 Networking Perspective

14.3.2 Mechanism-Design Perspective

14.3.3 A DAMD Approach: Combining the Two Perspectives

14.3.3.1 Commercial Internet Routing and the Gao–Rexford Model

14.4 Conclusion and Open Problems

14.5 Notes

Acknowledgments

Bibliography

Chapter 15 Cost Sharing

15.1 Cooperative Games and Cost Sharing

15.2 Core of Cost-Sharing Games

15.2.1 Core of TU Games

15.2.2 Approximate Core

15.2.3 Core of NTU Games

15.3 Group-Strategyproof Mechanisms and Cross-Monotonic Cost-Sharing Schemes

15.4 Cost Sharing via the Primal-Dual Schema

15.4.1 Submodular Games

15.4.2 The Facility Location Game

15.5 Limitations of Cross-Monotonic Cost-Sharing Schemes

15.6 The Shapley Value and the Nash Bargaining Solution

15.6.1 The Shapley Value

15.6.2 An Axiomatic Characterization of the Shapley Value

15.6.3 The Nash Bargaining Solution

15.7 Conclusion

15.8 Notes

Acknowledgments

Bibliography

Chapter 16 Online Mechanisms

16.1 Introduction

16.1.1 Example: Dynamic Auction with Expiring Items

16.1.2 The Challenge of Online MD

16.1.3 Outline

16.2 Dynamic Environments and Online MD

16.2.1 Direct-Revelation Mechanisms

16.2.2 Remark: The Revelation Principle

16.3 Single-Valued Online Domains

16.3.1 Truthfulness for Single-Valued Preference Domains

16.3.2 Example: A Dynamic Auction with Expiring Items

16.3.3 Example: An Adaptive, Limited-Supply Auction

16.3.4 Remarks

16.4 Bayesian Implementation in Online Domains

16.4.1 A General Model

16.4.2 A Dynamic Vickrey–Clarke–Groves Mechanism

16.4.3 Remarks

16.5 Conclusions

16.6 Notes

Acknowledgments

Bibliography

Part III Quantifying the Inefficiency of Equilibria

17 introduction to the inefficiency of equilibria

17.1 Introduction

17.1.1 The Inefficiency of Equilibria

17.1.2 Measures of Inefficiency

17.1.3 The Price of Anarchy and the Price of Stability

17.2 Fundamental Network Examples

17.2.1 Selfish Routing

17.2.2 Network Design and Formation Games

17.2.3 Scheduling Games

17.2.4 Resource Allocation Games

17.3 Inefficiency of Equilibria as a Design Metric

17.3.1 Motivation

17.3.2 An Example: The Proportional Sharing Mechanism

17.4 Notes

Bibliography

18 Routing Games

18.1 Introduction

18.2 Models and Examples

18.2.1 Nonatomic Selfish Routing

18.2.1 Nonatomic Selfish Routing

18.2.2 Atomic Selfish Routing

18.3 Existence, Uniqueness, and Potential Functions

18.3.1 Nonatomic Selfish Routing: Existence and Uniqueness

18.3.2 Atomic Selfish Routing: Existence

18.4 The Price of Anarchy of Selfish Routing

18.4.1 Nonatomic Selfish Routing: The Price of Anarchy

18.4.2 Atomic Selfish Routing: The Price of Anarchy

18.5 Reducing the Price of Anarchy

18.5.1 Marginal Cost Pricing

18.5.2 Capacity Augmentation

18.6 Notes

18.6.1 Nonatomic Selfish Routing

18.6.2 Atomic Selfish Routing

Bibliography

19 Network Formation Games and the Potential Function Method

19.1 Introduction

19.2 The Local Connection Game

19.2.1 Model

19.2.2 Characterization of Solutions and the Price of Stability

19.2.3 The Price of Anarchy

19.3 Potential Games and a Global Connection Game

19.3.1 A Global Connection Game

19.3.2 Potential Games and Congestion Games

19.3.3 The Potential Function Method and the Price of Stability

19.3.4 Finding Nash Equilibria in Potential Games

19.3.5 Variations on Sharing in the Global Connection Game

19.4 Facility Location

19.4.1 The Model

19.4.2 Facility Location as a Potential Game

19.4.3 Utility Games

19.4.4 The Price of Anarchy for Utility Games

19.5 Notes

19.5.1 Local Connection Game

Open Problems

19.5.2 Potential Games and a Global Connection Game

Open Problems

19.5.3 Facility Location Game

Open Problems

Acknowledgments

Bibliography

20 Selfish Load Balancing

20.1 Introduction

20.1.1 Load Balancing Games

20.1.2 Example of a Load Balancing Game

20.1.3 Definition of the Price of Anarchy

20.2 Pure Equilibria for Identical Machines

20.2.1 The Price of Anarchy

20.2.2 Convergence Time of Best Responses

20.3 Pure Equilibria for Uniformly Related Machines

20.3.1 The Price of Anarchy

20.3.2 Algorithms for Computing Pure Equilibria

20.4 Mixed Equilibria on Identical Machines

20.4.1 Fully Mixed Equilibria

20.4.2 Price of Anarchy

20.5 Mixed Equilibria on Uniformly Related Machines

20.6 Summary and Discussion

20.7 Bibliographic Notes

Bibliography

21 The Price of Anarchy and the design of scalable resource allocation mechanisms

21.1 Introduction

21.2.1 Price Taking Users and Competitive Equilibrium

21.2.2 Price Anticipating Users and Nash Equilibrium

21.2.3 Price of Anarchy

21.2 The Proportional Allocation Mechanism

21.2.1 Price Taking Users and Competitive Equilibrium

21.2.2 Price Anticipating Users and Nash Equilibrium

21.2.3 Price of Anarchy

21.3 A Characterization Theorem

21.4 The Vickrey--Clarke--Groves Approach

21.4.1 VCG Mechanisms

21.4.2 Scalar Strategy VCG Mechanisms

21.5 Chapter Summary and Further Directions

21.6 Notes

21.6.1 Section 20.2

21.6.2 Section 20.3

Bibliography

Part IV Additional Topics

22 Incentives and Pricing in Communications Networks

22.1 Large Networks -- Competitive Models

22.2.1 Pricing and Efficiency with Congestion Externalities

22.2.2 Model

22.2.3 Monopoly Pricing and Equilibrium

22.2.4 Oligopoly Pricing and Equilibrium

22.2.5 Efficiency Analysis

22.2.6 Extensions

22.2 Pricing and Resource Allocation -- Game Theoretic Models

22.3 Alternative Pricing and Incentive Approaches

22.3.1 PreviousWork on Pricing

22.3.2 Current Research on Pricing and Incentive Models

22.3.3 Areas for Future Research

Bibliography

23 Incentives in Peer-to-Peer Systems

23.1 Introduction

23.2 The p2p File-Sharing Game

23.3 Reputation

23.3.1 A Minimalist p2p Model

23.3.2 Reputation and Service Differentiation

23.4 A Barter-Based System: BitTorrent

23.5 Currency

23.6 Hidden Actions in p2p Systems

23.6.1 The Principal-Agent Model

23.6.2 Results

23.7 Conclusion

23.8 Bibliographic Notes

Bibliography

24 Cascading Behavior in Networks: Algorithmic and Economic Issues

24.1 Introduction

24.2 A First Model: Networked Coordination Games

24.3 More General Models of Social Contagion

24.4 Finding Influential Sets of Nodes

24.5 Empirical Studies of Cascades in Online Data

24.6 Notes and Further Reading

Bibliography

25 incentives and information security

25.1 Introduction

25.2 Misaligned Incentives

25.2.1 Applications of Game Theory

25.2.2 Network Effects and Deployment

25.3 Informational Asymmetries

25.3.1 Hidden-Action Attacks

25.3.2 Hidden Information: Measuring Software Security

25.3.3 Market-Based Approaches

25.4 The Economics of Censorship Resistance

25.4.1 Red–Blue Utility Model

25.4.2 Comparing Censorship Resistance

25.5 Complex Networks and Topology

25.6 Conclusion

25.7 Notes

Bibliography

26 Computational Aspects of Prediction Markets

26.1 Introduction: What Is a Prediction Market?

26.2 Background

26.2.1 Setup and Notation

26.2.2 Survey of the Field

26.2.2.1 What and How: Instruments and Mechanisms

26.2.2.2 Examples and Evaluations

26.2.2.3 Theoretical Underpinnings

26.3 Combinatorial Prediction Markets

26.3.1 Compound Prediction Markets

26.3.1.1 Orders

26.3.1.2 The Matching Problem

26.3.1.3 The Computational Complexity of Matching

26.3.2 Compact Prediction Markets

26.4 Automated Market Makers

26.4.1 Market Scoring Rules

26.4.2 Dynamic Parimutuel Markets

26.5 Distributed Computation through Markets

26.5.1 Boolean Market Model

26.5.2 Bid Format and Price Formation

26.5.3 Agent Behavior

26.5.4 Equilibrium Price Characterization

26.5.5 Characterizing Computable Aggregates

26.5.6 Convergence Time

26.6 Open Questions

Combinatorial Prediction Markets

Automated Market Makers

Distributed Computation Through Markets

26.7 Bibliographic Notes

Acknowledgments

Bibliography

27 manipulation-resistant reputation systems

27.1 Introduction: Why Are Reputation Systems Important?

27.2 The Effect of Reputations

27.3 Whitewashing

27.3.1 A More Dynamic Model

27.4 Eliciting Effort and Honest Feedback

27.4.1 A Model

27.4.2 Peer-Prediction Scoring

27.5 Reputations Based on Transitive Trust

27.5.1 Incentives for Honest Reporting

27.5.2 Sybils and Sybilproofness

27.6 Conclusion and Extensions

27.6.1 Extensions and Open Problems

27.7 Bibliographic notes

Bibliography

28 Sponsored Search Auctions

28.1 Introduction

28.2 Existing Models and Mechanisms

28.3 A Static Model

28.3.1 Revenue Maximization and Efficiency

28.3.2 Equilibrium Properties

28.4 Dynamic Aspects

28.4.1 The Online Allocation Problem

28.5 Open Questions

28.6 Bibliographic Notes

Bibliography

29 Computational Evolutionary Game Theory

29.1 Evolutionary Game Theory

29.1.1 The Classical Model of Evolutionary Game Theory

29.2 The Computational Complexity of Evolutionarily Stable Strategies

29.3 Evolutionary Dynamics Applied to Selfish Routing

29.3.1 The Selfish Routing Model with Imitative Dynamics

29.3.2 Convergence to Nash Flow

29.3.3 Convergence to Approximate Equilibrium

29.4 Evolutionary Game Theory over Graphs

29.4.1 Random Graphs, Adversarial Mutations

29.5 Future Work

29.6 Notes

Acknowledgments

Bibliography

Index

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