ECE700.07: Game Theory with Engineering Applications Le Lecture 1: - - PowerPoint PPT Presentation

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ECE700.07: Game Theory with Engineering Applications Le Lecture 1: - - PowerPoint PPT Presentation

Jan 02, 2024 354 likes •557 views

ECE700.07: Game Theory with Engineering Applications Le Lecture 1: Introduction Seyed Majid Zahedi K-Beauty Contest Game Lets start with playing game Everyone writes down a number between 0 and 100 Person closest to k = 2/3 of

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SLIDE 1

ECE700.07: Game Theory with Engineering Applications

Seyed Majid Zahedi

Le Lecture 1: Introduction

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SLIDE 2

K-Beauty Contest Game

  • Let’s start with playing game
  • Everyone writes down a number between 0 and 100
  • Person closest to k = 2/3 of the average wins
  • Example:
  • A says 50 - B says 10 - C says 90
  • 2/3 of average(50, 10, 90) = 2/3 * 50 = 33.33
  • A is closest (|50-33.33| = 16.67), so A wins
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SLIDE 3

Overview

  • Course mechanics
  • Outline and topics
  • What is game theory?
  • What is mechanism design?
  • Examples
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SLIDE 4

Course Mechanics

  • Course website
  • https://ece.uwaterloo.ca/~smzahedi/crs/ece700t7
  • All class information, lecture notes, assignments, etc.
  • Office hour
  • W 16:00 to 17:00, or catch me after class, or send me email to setup meeting
  • Prerequisites
  • Basic knowledge of algorithms, probability, and optimization would be helpful
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SLIDE 5

Course Requirements

  • Participation and pop quizzes 10%
  • Assignments 20%
  • Should be done individually, no group discussions
  • Midterm 30% (date TBD)
  • Project 40%
  • Could be done individually or in groups of 2
  • Should be on applications of game theory to engineering research problem
  • Experimental study via simulation of game-theoretic mechanisms
  • Theoretical analysis of game-theoretic models
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SLIDE 6

Text and References

  • There is no required textbook, here are useful references
  • Multi-agent Systems by Shoham and Leyton-Brown (freely available online)
  • Game Theory by Fudenberg and Tirole,
  • A Course in Game Theory by Osborne and Rubinstein (freely available onliene)
  • Microeconomic Theory by Mas-Colell, Whinston, and Green
  • Algorithmic Game Theory by Nisan, Roughgarden, Tardos, and Vazirani
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SLIDE 7

Course Information

  • Introduce fundamentals of game theory and mechanism design
  • Emphasize on theory, mathematical models, and equilibrium notions
  • Study examples from engineered systems
  • E.g., routing games, resource allocation, strategies in electricity markets, etc.
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SLIDE 8

Tentative Topics

  • Strategic form games
  • Extensive games with perfect information
  • Repeated games
  • Games with incomplete information
  • Mechanism design
  • Learning in games
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SLIDE 9

Game Theory

  • Study of mathematical models of

conflict and cooperation between intelligent rational decision- makers

[Roger Myerson, Game Theory: Analysis of Conflict]

  • Fig. A Beautiful Mind, from s.hdnux.com

John Forbes Nash Jr. 1928-2015

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SLIDE 10

Game Theory

  • Op

Optimization

  • n theor
  • ry: optimize single objective
  • Ga

Game theory: study multi-agent decision making to understand

  • Competition, coordination, and cooperation among self-interested agents

min. f(x) s.t. x ∈ X ⊆ Rn

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SLIDE 11

Mechanism Design

  • Mechanism design is a field in economics and game theory that takes an

engineering approach to designing economic mechanisms or incentives, toward desired objectives, in strategic settings, where players act rationally

[Wikipedia Aug. 2018]

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SLIDE 12

Example I: Resource Allocation

  • Design resource management systems robust to strategic behavior
  • Agents manipulate management systems
  • Real-life Examples
  • Yahoo! MapReduce datacenter [A. Ghodsi et al. 2011]

Map slots were congested, users ran long reduce tasks

  • Google Borg [A. Verma et al. 2015]

Users inflated demands to avoid colocated tasks Users deflated demands to fit in on any machine

12

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SLIDE 13

Example II: Electricity Markets

  • Generators supply energy into grid
  • Operator balances demand/supply
  • Generators can strategically curtail

generation to manipulate prices

  • Electricity markets should be carefully

studied, designed and regulated

www.euneighbours.eu

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SLIDE 14

Example III: Blockchains

  • Design protocols that guarantee
  • No coalition has incentives to deviate
  • If some coalition deviates, then no participating agent is worse of

www.blockchains-expert.com

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SLIDE 15

Example IV: Autonomous Cars

  • Autonomous cars constantly interact with
  • ther drivers
  • Different drivers deploy different decision

making policies

  • Safety needs to be verified
  • Requires 275 million miles of driving
  • Game-theoretic traffic models could be

used to test, compare, and calibrate control systems

assets.aspeninstitute.org

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SLIDE 16

Example V: Real-world Security [TEAMCORE group (USC)]

  • Airport security: where to put checkpoints?
  • Deployed at LAX
  • Federal Air Marshals: which flights get FAM?
  • USA Coast Guard: which routs should be followed?
  • Deployed in Boston Harbor
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SLIDE 17

Questions?

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SLIDE 18

Acknowledgement

  • This lecture is a slightly modified version of ones prepared by
  • Asu Ozdaglar [MIT 6.254]
  • Vincent Conitzer [Duke CPS 590.4]