The Power of Small Coalitions in Cost Sharing Florian Schoppmann - - PowerPoint PPT Presentation

the power of small coalitions in cost sharing
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The Power of Small Coalitions in Cost Sharing Florian Schoppmann - - PowerPoint PPT Presentation

The Power of Small Coalitions in Cost Sharing Florian Schoppmann International Graduate School Dynamic Intelligent Systems University of Paderborn, Germany Cost Sharing A public excludable good (service) is to be made available to n players


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SLIDE 1

The Power of Small Coalitions in Cost Sharing

Florian Schoppmann International Graduate School Dynamic Intelligent Systems University of Paderborn, Germany

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SLIDE 2

Cost Sharing

  • A public excludable good (service) is to be

made available to n players

  • Player i is characterized by his valuation vi
  • Service cost C(q) depends on allocation
  • Task: Determine allocation and cost shares
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SLIDE 3

Example: Public Infrastructure Project

  • Steiner tree problem
  • Service = Connectivity

to new power plant

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SLIDE 4

Cost-Sharing Mechanism

  • Protocol: elicit reports first, then serve
  • Mathematically:

Mechanism M = (q, x) n players b !(!) !(!)

∈ {!, "}! ∈ R! ∈ R!

≥!

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SLIDE 5

What is the problem?

  • Valuations vi are private
  • A mechanism should elicit truthful bids bi
  • Budget-Balance, Efficiency, Polynomial time
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SLIDE 6

What is the problem?

  • Valuations vi are private
  • A mechanism should elicit truthful bids bi
  • Budget-Balance, Efficiency, Polynomial time
  • Recover cost
  • Bounded surplus
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SLIDE 7

What is the problem?

  • Valuations vi are private
  • A mechanism should elicit truthful bids bi
  • Budget-Balance, Efficiency, Polynomial time

Trade off service cost and excluded valuations

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SLIDE 8

Preliminaries

  • Quasi-linear utilities, ui(b|vi) = qi(b)· vi – xi(b)
  • Requirements:
  • Non-negative cost shares: xi(b) ≥ 0
  • Individually rational: If bi = vi then ui(b|vi) ≥ 0
  • Player sovereignty: If bi = b∞ then qi(b) = 1
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SLIDE 9

Strategy-Proofness

  • Unilateral deviation is never successful
  • Truth is always a Nash Equilibrium

(whatever the true valuations v)

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SLIDE 10

Strategy-Proofness

  • Unilateral deviation is never successful
  • Truth is always a Nash Equilibrium

(whatever the true valuations v)

b1 q1 = 0 x1 = 0 Threshold

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SLIDE 11

Strategy-Proofness

  • Unilateral deviation is never successful
  • Truth is always a Nash Equilibrium

(whatever the true valuations v)

b1 q1 = 0 x1 = 0 Threshold q1 = 1 x1 =

  • r
  • r
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SLIDE 12

Strategy-Proofness

  • Unilateral deviation is never successful
  • Truth is always a Nash Equilibrium

(whatever the true valuations v)

b1 Threshold q1 = 1 x1 =

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SLIDE 13

Coalitional Variants of Strategy-Proofness

  • Joint deviation is never successful
  • Weak notion of successful – strong collusion

resistance:

  • All players gain utility (weakly group-strategyproof)
  • Somebody better, nobody worse off (group-strategyproof)
  • Sum of utilities improve (“ultimately GSP”)
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SLIDE 14

Moulin Mechanisms

(Moulin, 1999)

  • Group-strategyproof
  • Cross-Monotonicity
  • Idea: Largest feasible set

bi 1 2 3 4

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SLIDE 15

Moulin Mechanisms

(Moulin, 1999)

  • Group-strategyproof
  • Cross-Monotonicity
  • Idea: Largest feasible set

bi 1 2 3 4

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SLIDE 16

Moulin Mechanisms

(Moulin, 1999)

  • Group-strategyproof
  • Cross-Monotonicity
  • Idea: Largest feasible set

bi 1 2 3 4

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SLIDE 17

Moulin Mechanisms

(Moulin, 1999)

  • Group-strategyproof
  • Cross-Monotonicity
  • Idea: Largest feasible set

bi 1 2 3 4

+ Universal technique − Poor BB and EFF

sometimes inevitable

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SLIDE 18

Implications of SP, WGSP, GSP, etc.

Transfers Communication Service Money Each with all None None

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SLIDE 19

Implications of SP, WGSP, GSP, etc.

Transfers Communication Service Money Each with all None None SP

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SLIDE 20

GSP

Implications of SP, WGSP, GSP, etc.

Transfers Communication Service Money Each with all None None SP

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SLIDE 21

GSP

Implications of SP, WGSP, GSP, etc.

Transfers Communication Service Money Each with all None None WGSP SP

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SLIDE 22

GSP

Implications of SP, WGSP, GSP, etc.

“ultimate” GSP Transfers Communication Service Money Each with all None None WGSP SP

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SLIDE 23

GSP

Implications of SP, WGSP, GSP, etc.

“ultimate” GSP Transfers Communication Service Money Each with all None None WGSP k-GSP SP

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SLIDE 24

GSP

Implications of SP, WGSP, GSP, etc.

“ultimate” GSP Transfers Communication Service Money Each with all None None WGSP k-GSP SP All these notions imply perfect information!

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SLIDE 25

Related Work

  • Effective pairwise strategyproof (Serizawa, 2006)
  • Weak utility non-bossy (Mutuswami, 2005)
  • Bribe-proof (Schummer, 2000)
  • Cost-Sharing: Assuming monetary transfers is too strong
  • k-strong equilibria (Andelman et al., 2007)
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SLIDE 26
  • Example with 3 players
  • Set thresholds
  • If b = (1, 1, 1) then serve all, else do not serve indifferents

k-GSP ≠ GSP

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SLIDE 27
  • Example with 3 players
  • Set thresholds
  • If b = (1, 1, 1) then serve all, else do not serve indifferents

k-GSP ≠ GSP

bi 1 2 3

1.5 1

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SLIDE 28
  • Example with 3 players
  • Set thresholds
  • If b = (1, 1, 1) then serve all, else do not serve indifferents

k-GSP ≠ GSP

bi 1 2 3

1.5 1

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SLIDE 29

Main Result: 2-GSP + Separability ⇔ GSP

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Technical Lemma

2-GSP ⇒ no coalition K with ∀i ∈ K: bi ∈ { –1, b∞ } is ever successful

  • Let p be last in with up(bp) < up(bp – 1)
  • Then: p gains service, loses utility: ui(bp) < 0
  • up(b|bp) ≤ up(bp|bp), i.e., xp(b) ≥ xp(bp) > vp
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SLIDE 31

Technical Lemma

2-GSP ⇒ no coalition K with ∀i ∈ K: bi ∈ { –1, b∞ } is ever successful

  • Let p be last in with up(bp) < up(bp – 1)
  • Then: p gains service, loses utility: ui(bp) < 0
  • up(b|bp) ≤ up(bp|bp), i.e., xp(b) ≥ xp(bp) > vp

1 … m m + 1 … k n

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SLIDE 32

Technical Lemma

2-GSP ⇒ no coalition K with ∀i ∈ K: bi ∈ { –1, b∞ } is ever successful

  • Let p be last in with up(bp) < up(bp – 1)
  • Then: p gains service, loses utility: ui(bp) < 0
  • up(b|bp) ≤ up(bp|bp), i.e., xp(b) ≥ xp(bp) > vp

1 … m m + 1 … k n b1 := (b1, v2, …, vn)

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SLIDE 33

Technical Lemma

2-GSP ⇒ no coalition K with ∀i ∈ K: bi ∈ { –1, b∞ } is ever successful

  • Let p be last in with up(bp) < up(bp – 1)
  • Then: p gains service, loses utility: ui(bp) < 0
  • up(b|bp) ≤ up(bp|bp), i.e., xp(b) ≥ xp(bp) > vp

bi := (b1, …, bi, vi + 1, …, vn) 1 … m m + 1 … k n

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SLIDE 34

Technical Lemma

2-GSP ⇒ no coalition K with ∀i ∈ K: bi ∈ { –1, b∞ } is ever successful

  • Let p be last in with up(bp) < up(bp – 1)

bi := (b1, …, bi, vi + 1, …, vn) 1 … m m + 1 … k n

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SLIDE 35

Technical Lemma

2-GSP ⇒ no coalition K with ∀i ∈ K: bi ∈ { –1, b∞ } is ever successful

  • Let p be last in with up(bp) < up(bp – 1)

bi := (b1, …, bi, vi + 1, …, vn) 1 … m m + 1 … k n = 0

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SLIDE 36

Technical Lemma

2-GSP ⇒ no coalition K with ∀i ∈ K: bi ∈ { –1, b∞ } is ever successful

  • Let p be last in with up(bp) < up(bp – 1)
  • Then: p gains service, loses utility: ui(bp) < 0

bi := (b1, …, bi, vi + 1, …, vn) 1 … m m + 1 … k n = 0

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SLIDE 37

Technical Lemma

2-GSP ⇒ no coalition K with ∀i ∈ K: bi ∈ { –1, b∞ } is ever successful

  • Let p be last in with up(bp) < up(bp – 1)
  • Then: p gains service, loses utility: ui(bp) < 0
  • up(b|bp) ≤ up(bp|bp), i.e., xp(b) ≥ xp(bp) > vp

bi := (b1, …, bi, vi + 1, …, vn) 1 … m m + 1 … k n = 0

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SLIDE 38

Technical Lemma

2-GSP ⇒ no coalition K with ∀i ∈ K: bi ∈ { –1, b∞ } is ever successful

  • Let p be last in with up(bp) < up(bp – 1)
  • Then: p gains service, loses utility: ui(bp) < 0
  • up(b|bp) ≤ up(bp|bp), i.e., xp(b) ≥ xp(bp) > vp

bi := (b1, …, bi, vi + 1, …, vn) 1 … m m + 1 … k n = 0

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SLIDE 39

2-GSP + Separability ⇒ GSP

  • Assume (k – 1)-GSP & ∃ successful K of size k
  • By Lemma: k < n and, w.l.o.g., un(b) < un(v)
  • Utilities are stationary in phase 2
  • Not everything can happen in phase 1

1 … … k n qi(b) > qi(v) and xi(b) = vi ui(b) > ui(v) or Mi(b) = Mi(v)

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SLIDE 40

Other results

GSP 2-GSP WGSP SP separable upper- continuous (outcome) non-bossy weakly utility non-bossy 2-WGSP

+

Mutuswami, 2005

+ +

Implications by definition This work

+ +

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SLIDE 41

Summary

  • Motivation
  • Weakening GSP in a way orthogonal to the known

relaxations GSP → WGSP

  • Communication is not unlimited
  • Results

− 2-GSP does not really allow for better performance + Characterization + Verifying GSP should become easier