Asymptotically truthful equilibrium selection in large congestion games

Studying games in the complete information model makes them analytically tractable. However, large n player interactions are more realistically modeled as games of incomplete information, where players may know little to nothing about the types of other players. Unfortunately, games in incomplete information settings lose many of the nice properties of complete information games: the quality of equilibria can become worse, the equilibria lose their ex-post properties, and coordinating on an equilibrium becomes even more difficult. Because of these problems, we would like to study games of incomplete information, but still implement equilibria of the complete information game induced by the (unknown) realized player types. This problem was recently studied by Kearns et al [Kearns et al. 2014], and solved in large games by means of introducing a weak mediator: their mediator took as input reported types of players, and output suggested actions which formed a correlated equilibrium of the underlying game. Players had the option to play independently of the mediator, or ignore its suggestions, but crucially, if they decided to opt-in to the mediator, they did not have the power to lie about their type. In this paper, we rectify this deficiency in the setting of large congestion games. We give, in a sense, the weakest possible mediator: it cannot enforce participation, verify types, or enforce its suggestions. Moreover, our mediator implements a Nash equilibrium of the complete information game. We show that it is an (asymptotic) ex-post equilibrium of the incomplete information game for all players to use the mediator honestly, and that when they do so, they end up playing an approximate Nash equilibrium of the induced complete information game. In particular, truthful use of the mediator is a Bayes-Nash equilibrium in any Bayesian game for any prior.

[1]  Moni Naor,et al.  Differential privacy under continual observation , 2010, STOC '10.

[2]  Aaron Roth,et al.  The Algorithmic Foundations of Differential Privacy , 2014, Found. Trends Theor. Comput. Sci..

[3]  Parag A. Pathak,et al.  Matching with Couples: Stability and Incentives in Large Markets , 2010 .

[4]  Rann Smorodinsky,et al.  Pivotal Players and the Characterization of Influence , 2000, J. Econ. Theory.

[5]  Aaron L. Bodoh-Creed,et al.  Efficiency and information aggregation in large uniform-price auctions , 2013, J. Econ. Theory.

[6]  L. Shapley,et al.  Potential Games , 1994 .

[7]  Omer Reingold,et al.  Partial exposure in large games , 2010, Games Econ. Behav..

[8]  Noam Nisan,et al.  Proceedings of the 4th ACM conference on Electronic commerce , 2003 .

[9]  Justin Hsu,et al.  Differential privacy for the analyst via private equilibrium computation , 2012, STOC '13.

[10]  Elaine Shi,et al.  Private and Continual Release of Statistics , 2010, TSEC.

[11]  Itai Ashlagi,et al.  Mediators in position auctions , 2007, EC '07.

[12]  Tim Roughgarden,et al.  Private matchings and allocations , 2013, SIAM J. Comput..

[13]  Eric Budish,et al.  Strategyproofness in the large as a desideratum for market design , 2012, EC '12.

[14]  Parag A. Pathak,et al.  Appendix to "Incentives and Stability in Large Two-Sided Matching Markets" , 2009 .

[15]  Christos H. Papadimitriou,et al.  The complexity of pure Nash equilibria , 2004, STOC '04.

[16]  Aaron Roth,et al.  Privacy and mechanism design , 2013, SECO.

[17]  Nicole Immorlica,et al.  Marriage, honesty, and stability , 2005, SODA '05.

[18]  Omer Reingold,et al.  Fault tolerance in large games , 2008, EC '08.

[19]  Moshe Tennenholtz,et al.  Approximately optimal mechanism design via differential privacy , 2010, ITCS '12.

[20]  Cynthia Dwork,et al.  Calibrating Noise to Sensitivity in Private Data Analysis , 2006, TCC.

[21]  R. Colker Marriage , 1955 .

[22]  Moshe Tennenholtz,et al.  Strong mediated equilibrium , 2006, Artif. Intell..

[23]  Elias Koutsoupias,et al.  The price of anarchy of finite congestion games , 2005, STOC '05.

[24]  D. J. Roberts,et al.  THE INCENTIVES FOR PRICE-TAKING BEHAVIOR IN LARGE EXCHANGE ECONOMIES , 1976 .

[25]  Kunal Talwar,et al.  Mechanism Design via Differential Privacy , 2007, 48th Annual IEEE Symposium on Foundations of Computer Science (FOCS'07).

[26]  Mohammad Taghi Hajiaghayi,et al.  Regret minimization and the price of total anarchy , 2008, STOC.

[27]  Tim Roughgarden,et al.  The price of anarchy in games of incomplete information , 2012, SECO.

[28]  Yossi Azar,et al.  The Price of Routing Unsplittable Flow , 2005, STOC '05.

[29]  Itai Ashlagi,et al.  Mediators in position auctions , 2009, Games Econ. Behav..

[30]  E. Kalai Large Robust Games , 2004 .

[31]  Moshe Tennenholtz,et al.  k-Implementation , 2003, EC '03.

[32]  Aaron Roth,et al.  Mechanism design in large games: incentives and privacy , 2012, ITCS.