We study the role that privacy-preserving algorithms, which prevent the leakage of specific information about participants, can play in the design of mechanisms for strategic agents, which must encourage players to honestly report information. Specifically, we show that the recent notion of differential privacy [15, 14], in addition to its own intrinsic virtue, can ensure that participants have limited effect on the outcome of the mechanism, and as a consequence have limited incentive to lie. More precisely, mechanisms with differential privacy are approximate dominant strategy under arbitrary player utility functions, are automatically resilient to coalitions, and easily allow repeatability. We study several special cases of the unlimited supply auction problem, providing new results for digital goods auctions, attribute auctions, and auctions with arbitrary structural constraints on the prices. As an important prelude to developing a privacy-preserving auction mechanism, we introduce and study a generalization of previous privacy work that accommodates the high sensitivity of the auction setting, where a single participant may dramatically alter the optimal fixed price, and a slight change in the offered price may take the revenue from optimal to zero. 1

We study situations in which autonomous systems (ASes) may have incentives to send BGP announcements differing from the AS-level paths that packets traverse in the data plane. Prior work on this issue assumed that ASes seek only to obtain the best possible outgoing path for their traffic. In reality, other factors can influence a rational AS’s behavior. Here we consider a more natural model, in which an AS is also interested in attracting incoming traffic (e.g., because other ASes pay it to carry their traffic). We ask what combinations of BGP enhancements and restrictions on routing policies can ensure that ASes have no incentive to lie about their data-plane paths. We find that protocols like S-BGP alone are insufficient, but that S-BGP does suffice if coupled with additional (quite unrealistic) restrictions on routing policies. Our game-theoretic analysis illustrates the high cost of ensuring that the ASes honestly announce data-plane paths in their BGP path announcements.

We study a generalization of the classical secretary problem which we call the “matroid secretary problem”. In this problem, the elements of a matroid are presented to an online algorithm in random order. When an element arrives, the algorithm observes its value and must make an irrevocable decision regarding whether or not to accept it. The accepted elements must form an independent set, and the objective is to maximize the combined value of these elements. This paper presents an O(log k)-competitive algorithm for general matroids (where k is the rank of the matroid), and constant-competitive algorithms for several special cases including graphic matroids, truncated partition matroids, and bounded degree transversal matroids. We leave as an open question the existence of constant-competitive algorithms for general matroids. Our results have applications in welfaremaximizing online mechanism design for domains in which the sets of simultaneously satisfiable agents form a matroid.

Recent work on online auctions for digital goods has explored the role of optimal stopping theory — particularly secretary problems — in the design of approximately optimal online mechanisms. This work generally assumes that the size of the market (number of bidders) is known a priori, but that the mechanism designer has no knowledge of the distribution of bid values. However, in many real-world applications (such as online ticket sales), the opposite is true: the seller has distributional knowledge of the bid values (e.g., via the history of past transactions in the market), but there is uncertainty about market size. Adopting the perspective of automated mechanism design, introduced by Conitzer and Sandholm, we develop algorithms that compute an optimal, or approximately optimal, online auction mechanism given access to this distributional knowledge. Our main results are twofold. First, we show that when the seller does not know the market size, no constant-approximation to the optimum efficiency or revenue is achievable in the worst case, even under the very strong assumption that bid values are i.i.d. samples from a distribution known to the seller. Second, we show that when the seller has distributional knowledge of the market size as well as the bid values, one can do well in several senses. Perhaps most interestingly, by combining dynamic programming with prophet inequalities (a technique from optimal stopping theory) we are able to design and analyze online mechanisms which are temporally strategyproof (even with respect to arrival and departure times) and approximately efficiency(revenue)-maximizing. In exploring the interplay between automated mechanism design and prophet inequalities, we prove new prophet inequalities motivated by the auction setting.

Significant work has been done on computational aspects of solving games under various solution concepts, such as Nash equilibrium, subgame perfect Nash equilibrium, correlated equilibrium, and (iterated) dominance. However, the fundamental concepts of rationalizability and CURB (Closed Under Rational Behavior) sets have not, to our knowledge, been studied from a computational perspective. First, for rationalizability we describe an LP-based polynomial algorithm that finds all strategies that are rationalizable against a mixture over a given set of opponent strategies. Then, we describe a series of increasingly sophisticated polynomial algorithms for finding all minimal CURB sets, one minimal CURB set, and the smallest minimal CURB set. Finally, we give theoretical results regarding the relationships between CURB sets and Nash equilibria, showing that finding a Nash equilibrium can be exponential only in the size of the smallest CURB set. We show that this can lead to an arbitrarily large reduction in the complexity of finding a Nash equilibrium. On the downside, we also show that the smallest CURB set can be arbitrarily larger than the supports of the enclosed Nash equilibrium.

Online double auctions (DAs) model a dynamic two-sided matching problem with private information and self-interest, and are relevant for dynamic resource and task allocation problems. We present a general method to design truthful DAs, such that no agent can benefit from misreporting its arrival time, duration, or value. The family of DAs is parameterized by a pricing rule, and includes a generalization of McAfee’s truthful DA to this dynamic setting. We present an empirical study, in which we study the allocative-surplus and agent surplus for a number of different DAs. Our results illustrate that dynamic pricing rules are important to provide good market efficiency for markets with high volatility or low volume. 1

We study the following online problem: at each time unit, one of m identical items is offered for sale. Bidders arrive and depart dynamically, and each bidder is interested in winning one item between his arrival and departure. Our goal is to design truthful mechanisms that maximize the welfare, the sum of the utilities of winning bidders. We first consider this problem under the assumption that the private information for each bidder is his value for getting an item. In this model constant-competitive mechanisms are known, but we observe that these mechanisms suffer from the following disadvantage: a bidder might learn his payment only when he departs. We argue that these mechanism are essentially unusable, because they impose several seemingly undesirable requirements on any implementation of the mechanisms. To crystalize these issues, we define the notions of prompt and tardy mechanisms. We present two prompt truthful mechanisms – one deterministic and the other randomized, that guarantee a constant competitive ratio. We also prove that our deterministic mechanism is optimal for this setting. We then study a model in which both the value and the departure time are private information. While in the deterministic setting only a trivial competitive ratio can be guaranteed, we use ran-1 domization to obtain a prompt truthful Θ( log m)-competitive mechanism. Finally, we show that no in this model. truthful randomized mechanism can achieve a ratio better than 1 2

The classical secretary problem studies the problem of selecting online an element (a “secretary”) with maximum value in a randomly ordered sequence. The difficulty lies in the fact that an element must be either selected or discarded upon its arrival, and this decision is irrevocable. Constant-competitive algorithms are known for the classical secretary problems (see, e.g., the survey of Freeman [7]) and several variants. We study the following two extensions of the secretary problem: • In the discounted secretary problem, there is a time-dependent “discount ” factor d(t), and the benefit derived from selecting an element/secretary e at time t is d(t)·v(e). For this problem with arbitrary (not necessarily decreasing) functions d(t), we show a constant-competitive algorithm when the expected optimum is known in advance. With no prior knowledge, log n we exhibit a lower bound of Ω (), and give a nearly-log log n matching O(log n)-competitive algorithm. • In the weighted secretary problem, up to K secretaries can be selected; when a secretary is selected (s)he must be irrevocably assigned to one of K positions, with position k having weight w(k), and assigning object/secretary e to position k has benefit w(k) · v(e). The goal is to select secretaries and assign them to positions to maximize ∑ e,k w(k) · v(e) · xek where xek is an indicator variable that secretary e is assigned position k. We give constant-competitive algorithms for this problem. Most of these results can also be extended to the matroid secretary case (Babaioff et al. [2]) for a large family of matroids with a constant-factor loss, and an O(log rank) loss for general matroids. These results are based on a reduction from various matroids to partition matroids which present a unified approach to many of the upper bounds of Babaioff et al. These problems have connections to online mechanism design (see, e.g., Hajiaghayi et al. [9]). All our algorithms are monotone, and hence lead to truthful mechanisms for the corresponding online auction problems. 1

We study the following problem related to pricing over time. Assume there is a collection of bidders, each of whom is interested in buying a copy of an item of which there is an unlimited supply. Every bidder is associated with a time interval over which the bidder will consider buying a copy of the item, and a maximum value the bidder is willing to pay for the item. On every time unit the seller sets a price for the item. The seller’s goal is to set the prices so as to maximize revenue from the sale of copies of items over the time period. In the first model considered we assume that all bidders are impatient, that is, bidders buy the item at the first time unit within their bid interval that they can afford the price. To the best of our knowledge, this is the first work that considers this model. In the offline setting we assume that the seller knows the bids of all the bidders in advance. In the online setting we assume that at each time unit the seller only knows the values of the bids that have arrived before or at that time unit. We give a polynomial time offline algorithm and prove upper and lower bounds on the competitiveness of deterministic and randomized online algorithms, compared with the optimal offline solution. The gap between the upper and lower bounds is quadratic. We also consider the envy free model in which bidders are sold the item at the minimum price during their bid interval, as long as it is not over their limit value. We prove tight bounds on the competitiveness of deterministic online algorithms for this model, and upper and lower bounds on the competitiveness of randomized algorithms with quadratic gap. The lower bounds for the randomized case in both models uses a novel general technique.

Computational grids offer users a simple access to tremendous computer resources for solving large scale computing problems. Traditional performance analysis of scheduling algorithms considers overall system performance while fairness analysis focuses on the individual performance each user receives. Until recently, only few grids and cluster systems provided preemptive migration (e.g. [2]), which is the ability of dynamically moving computational tasks across machines during runtime. The emergent technology of virtualization (e.g. [4]) provides off-the-shelf support for migration, thus making the use of this feature more accessible (even across different OS’s). In this paper, we study the close relation between migration and fairness. We present fairness and quality of service properties for economic online scheduling algorithms. Under mild assumptions we show that it is impossible to achieve these properties without the use of migration. On the other hand, if zero cost migration is used, then these properties can be satisfied.