4.4GTJun 30
From Welfare to Utility: Generalized Objectives in Budget-Feasible ProcurementAlon Eden, Eldar Kerner, Kira Goldner et al.
We study mechanism design for the budget-feasible procurement problem, a natural problem that arises when a buyer wants to procure goods or services from multiple strategic sellers who each have a cost to provide that service, the buyer has a value for each service procured, but is constrained by a budget. In contrast to prior work, which has focused on buyer value maximization for this problem, we solve for optimal and approximately-optimal mechanisms for the objectives of buyer utility (value of procured services minus payments), welfare (value minus production costs), and generalizations of the two. For welfare, we design a simple mechanism that obtains a constant-factor approximation for the prior-free (worst-case) setting. As prior-free mechanisms fail to provide any guarantee for utility, even for a single seller, we consider Bayesian settings, where the buyer has distributional knowledge over sellers' costs. We first provide a utility-optimal mechanism that satisfies the buyer's budget constraint in expectation, then we show how to modify the mechanism to satisfy the budget constraint ex-post, for every realization of seller costs, while still obtaining near-optimal utility guarantees. Finally, we generalize our mechanisms to other objectives.
9.2GTJun 30
Knowing Who, Not How Much: Learning-Augmented Mechanisms for Consumer Utility MaximizationKira Goldner, Divyarthi Mohan, Thodoris Tsilivis
We study consumer utility maximization in an online random-order model where strategic agents arrive sequentially. To circumvent strong impossibility results for utility maximization, we turn to the framework of learning-augmented mechanism design. Crucially, we show that the types of predictions commonly used in learning-augmented mechanism design (such as predictions of agent values or the optimal value) are not useful for utility maximization, where payments are directly at odds with the objective. Instead, we identify that a qualitatively different kind of prediction suffices: the identity of the highest-valued agent. First, we provide a deterministic truthful mechanism for our online setting by adapting offline randomized techniques. Then, we augment our mechanism with predictions. When the predictions are correct, we achieve a constant approximation to the optimal solution under full information (consistency), and even when predictions are arbitrarily bad, we guarantee a constant approximation to the best implementable solution (robustness).
16.1GTOct 21, 2018
Mechanism Design for Social GoodRediet Abebe, Kira Goldner
Across various domains--such as health, education, and housing--improving societal welfare involves allocating resources, setting policies, targeting interventions, and regulating activities. These solutions have an immense impact on the day-to-day lives of individuals, whether in the form of access to quality healthcare, labor market outcomes, or how votes are accounted for in a democratic society. Problems that can have an out-sized impact on individuals whose opportunities have historically been limited often pose conceptual and technical challenges, requiring insights from many disciplines. Conversely, the lack of interdisciplinary approach can leave these urgent needs unaddressed and can even exacerbate underlying socioeconomic inequalities. To realize the opportunities in these domains, we need to correctly set objectives and reason about human behavior and actions. Doing so requires a deep grounding in the field of interest and collaboration with domain experts who understand the societal implications and feasibility of proposed solutions. These insights can play an instrumental role in proposing algorithmically-informed policies. In this article, we describe the Mechanism Design for Social Good (MD4SG) research agenda, which involves using insights from algorithms, optimization, and mechanism design to improve access to opportunity. The MD4SG research community takes an interdisciplinary, multi-stakeholder approach to improve societal welfare. We discuss three exciting research avenues within MD4SG related to improving access to opportunity in the developing world, labor markets and discrimination, and housing. For each of these, we showcase ongoing work, underline new directions, and discuss potential for implementing existing work in practice.