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Near-Optimality in Covering Games by Exposing Global Information

Published: 28 October 2014 Publication History

Abstract

Mechanism design for distributed systems is fundamentally concerned with aligning individual incentives with social welfare to avoid socially inefficient outcomes that can arise from agents acting autonomously. One simple and natural approach is to centrally broadcast nonbinding advice intended to guide the system to a socially near-optimal state while still harnessing the incentives of individual agents. The analytical challenge is proving fast convergence to near optimal states, and in this article we give the first results that carefully constructed advice vectors yield stronger guarantees.
We apply this approach to a broad family of potential games modeling vertex cover and set cover optimization problems in a distributed setting. This class of problems is interesting because finding exact solutions to their optimization problems is NP-hard yet highly inefficient equilibria exist, so a solution in which agents simply locally optimize is not satisfactory. We show that with an arbitrary advice vector, a set cover game quickly converges to an equilibrium with cost of the same order as the square of the social cost of the advice vector. More interestingly, we show how to efficiently construct an advice vector with a particular structure with cost O(log n) times the optimal social cost, and we prove that the system quickly converges to an equilibrium with social cost of this same order.

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Cited By

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  • (2015)Control of Stochastic Evolutionary Games on Networks∗∗This work was supported in part by the European Research Council (ERCStG-307207).IFAC-PapersOnLine10.1016/j.ifacol.2015.10.31048:22(76-81)Online publication date: 2015

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Published In

cover image ACM Transactions on Economics and Computation
ACM Transactions on Economics and Computation  Volume 2, Issue 4
October 2014
162 pages
ISSN:2167-8375
EISSN:2167-8383
DOI:10.1145/2684807
Issue’s Table of Contents
Permission to make digital or hard copies of part or all of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for third-party components of this work must be honored. For all other uses, contact the Owner/Author.

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Association for Computing Machinery

New York, NY, United States

Publication History

Published: 28 October 2014
Accepted: 01 February 2014
Revised: 01 October 2013
Received: 01 December 2012
Published in TEAC Volume 2, Issue 4

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Author Tags

  1. Mechanism design
  2. algorithmic game theory
  3. price of anarchy

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  • (2015)Control of Stochastic Evolutionary Games on Networks∗∗This work was supported in part by the European Research Council (ERCStG-307207).IFAC-PapersOnLine10.1016/j.ifacol.2015.10.31048:22(76-81)Online publication date: 2015

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