Advanced Topics in Algorithmic Game Theory Review

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Explore Equilibrium concepts, Complexity classes, Selfish Routing, Auctions, and more in this review session covering a range of game theory topics like Nash Equilibrium, PPAD, PLS, Potential Games, Smoothness framework, Cost-sharing games, and more.

  • Algorithmic Game Theory
  • Equilibrium Concepts
  • Complexity Classes
  • Auctions
  • Nash Equilibrium

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  1. CS 598 RM Review Session May 3rd, 2017

  2. Topics Covered Equilibrium in two player games: Nash, Correlated, Stackelberg Computation and hardness. Complexity classes PPAD, PPA, PLS, and PPP Selfish Routing Non-atomic and Atomic. Potential Games. PoA and Smoothness framework Cost-sharing games Auctions Truthful Auction, Myerson s Lemma Myerson s optimal Auction. Bulow-Kempler Theorem Without money: Voting, House Allocation, Stable Matching Markets: Fisher and Exchange model Equilibrium Characterization and Computation

  3. Nash Equilibrium Game (A,B) ?? ? ?? ?. x,y ? ?is a NE ??> 0 ???= max ??> 0 ????= max ??? ???? ? ?

  4. 1. Given a subsets ? and ? of pure actions of players one and two respectively, we can check in polynomial time if there is a NE with support (?,?).

  5. Complexity Classes PPAD and PLS

  6. 2. Show that finding pure NE of a potential game is in PLS

  7. Selfish Routing and Potential Function

  8. Smooth Games and PoA ,? ? ? ???? ? + ? ???? ? ?,? smooth: ?????

  9. Cost Sharing Games and PoS

  10. 3. Suppose the cost on each edge ? is not a constant but a non- decreasing concave function of the number of agents using it, i.e., ??0 = 0, ??(?) is non-decreasing, and (??? + 1 ??? ) is decreasing. PoS ?(?)

  11. Auctions and DSIC

  12. Myersons Lemma For single parameter setting, an allocation and a payment rule is DSIC iff 1) Allocation rule ??(.,? ?) is monotone for each ? and ? ? 2) ????,? ? = ???.???? ?? ??.,? ? ?? ??

  13. 4. Knapsack auction with two sacks of size ?1and ?2

  14. Myersons Optimal Auction ??~ ??. Virtual value: ???? = ?? 1 ???? ???? Maximizing expected revenue = maximizing expected virtual welfare Optimal DSIC auction: 1) Given bids (?1, ,??) allocate so that ???????is maximized 2) If monotone allocation, then decide prices as per Myerson s lemma

  15. ?1~ uniform over 0,1 ? ? = 1, ? ? = ? ?2~ exponential distribution with rate 3 ? ? = 3 ? 3?,? ? = 1 ? 3? 5. Allocation:

  16. VCG : set of outcomes. Allocation: Social welfare maximizing ? ??????? ???(?) Payment of agent ?: Harm it causes by participating max ? ? ??? ? ? ????

  17. 6. Procurement Auction: Auctioneer needs to buy out a house. There is a set A of sellers, and seller ? ? has a house with cost ??. Design a VCG mechanism.

  18. 7. Auction with unit demand agents.

  19. Fisher Market and Equilibrium

  20. 8. Compute equilibrium for the following market: two buyers, 3 goods ?1= 2,?2= 6, ?1?1 = ?11+ ?12+ ?13,?2?2 = ?22+ 2?23

  21. Exchange Market

  22. 9. Computing equilibrium of exchange market with Leontief utilities and pairing economy is PPAD-hard.

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