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In the ultimatum game, the challenge is to explain why responders reject non-zero offers thereby defying classical rationality. Fairness and related notions have been the main explanations so far. We explain this rejection behavior via the…

Theoretical Economics · Economics 2023-11-16 Lida H. Aleksanyan , Armen E. Allahverdyan , Vardan G. Bardakhchyan

Multi-objective optimization studies the process of seeking multiple competing desiderata in some operation. Solution techniques highlight marginal tradeoffs associated with weighing one objective over others. In this paper, we consider…

Optimization and Control · Mathematics 2026-01-05 Allahkaram Shafiei , Jakub Marecek

A dominant approach to solving large imperfect-information games is Counterfactural Regret Minimization (CFR). In CFR, many regret minimization problems are combined to solve the game. For very large games, abstraction is typically needed…

Machine Learning · Computer Science 2019-12-02 Ryan D'Orazio , Dustin Morrill , James R. Wright

Stochastic models have been dominant in network optimization theory for over two decades, due to their analytical tractability. However, these models fail to capture non-stationary or even adversarial network dynamics which are of…

Networking and Internet Architecture · Computer Science 2017-12-29 Qingkai Liang , Eytan Modiano

Bilateral trade, a fundamental topic in economics, models the problem of intermediating between two strategic agents, a seller and a buyer, willing to trade a good for which they hold private valuations. In this paper, we cast the bilateral…

Computer Science and Game Theory · Computer Science 2021-09-28 Nicolò Cesa-Bianchi , Tommaso Cesari , Roberto Colomboni , Federico Fusco , Stefano Leonardi

An agent observes the set of available projects and proposes some, but not necessarily all, of them. A principal chooses one or none from the proposed set. We solve for a mechanism that minimizes the principal's worst-case regret. We…

Theoretical Economics · Economics 2023-09-04 Yingni Guo , Eran Shmaya

We analyze a scenario in which software agents implemented as regret-minimizing algorithms engage in a repeated auction on behalf of their users. We study first-price and second-price auctions, as well as their generalized versions (e.g.,…

Computer Science and Game Theory · Computer Science 2022-03-28 Yoav Kolumbus , Noam Nisan

Multiagent systems deployed in the real world need to cooperate with other agents (including humans) nearly as effectively as these agents cooperate with one another. To design such AI, and provide guarantees of its effectiveness, we need…

Artificial Intelligence · Computer Science 2023-05-30 Robert Loftin , Mustafa Mert Çelikok , Frans A. Oliehoek

Understanding and predicting the behavior of large-scale multi-agents in games remains a fundamental challenge in multi-agent systems. This paper examines the role of heterogeneity in equilibrium formation by analyzing how smooth…

Computer Science and Game Theory · Computer Science 2025-07-24 Die Hu , Shuyue Hu , Chunjiang Mu , Shiqi Fan , Chen Chu , Jinzhuo Liu , Zhen Wang

The existence of optimal strategy in robust utility maximization is addressed when the utility function is finite on the entire real line. A delicate problem in this case is to find a "good definition" of admissible strategies, so that an…

Portfolio Management · Quantitative Finance 2012-10-16 Keita Owari

Regret minimization is a powerful tool for solving large-scale problems; it was recently used in breakthrough results for large-scale extensive-form game solving. This was achieved by composing simplex regret minimizers into an overall…

Machine Learning · Computer Science 2019-02-19 Gabriele Farina , Christian Kroer , Tuomas Sandholm

Motivated by learning of correlated equilibria in non-cooperative games, we perform a large deviations analysis of a regret minimizing stochastic approximation algorithm. The regret minimization algorithm we consider comprises multiple…

Optimization and Control · Mathematics 2024-06-04 Hongjiang Qian , Vikram Krishnamurthy

In increasingly different contexts, it happens that a human player has to interact with artificial players who make decisions following decision-making algorithms. How should the human player play against these algorithms to maximize his…

Computer Science and Game Theory · Computer Science 2022-02-22 Maurizio D 'Andrea

Humans have come to rely on machines for reducing excessive information to manageable representations. But this reliance can be abused -- strategic machines might craft representations that manipulate their users. How can a user make good…

Machine Learning · Computer Science 2022-06-20 Vineet Nair , Ganesh Ghalme , Inbal Talgam-Cohen , Nir Rosenfeld

It is frequently suggested that predictions made by game theory could be improved by considering computational restrictions when modeling agents. Under the supposition that players in a game may desire to balance maximization of payoff with…

Computer Science and Game Theory · Computer Science 2015-03-13 Hubie Chen

To study the assumption that the utility maximization hypothesis implicitly adds to consumer theory, we consider a mathematical representation of pre-marginal revolution consumer theory based on subjective exchange ratios. We introduce two…

Theoretical Economics · Economics 2025-11-19 Yuhki Hosoya

It is common to use minimax rules to make decisions for planning when there is great uncertainty on what will happen in the future. Minimax regret is one popular version of this. We give an analysis of the behaviour of minimax rules in the…

Optimization and Control · Mathematics 2022-03-04 Edward Anderson , Stan Zachary

We propose a novel online learning method for minimizing regret in large extensive-form games. The approach learns a function approximator online to estimate the regret for choosing a particular action. A no-regret algorithm uses these…

Artificial Intelligence · Computer Science 2015-01-05 Kevin Waugh , Dustin Morrill , J. Andrew Bagnell , Michael Bowling

Autonomous systems can substantially enhance a human's efficiency and effectiveness in complex environments. Machines, however, are often unable to observe the preferences of the humans that they serve. Despite the fact that the human's and…

Machine Learning · Statistics 2017-05-29 Agostino Capponi , Reza Ghanadan , Matt Stern

Policy optimization methods are popular reinforcement learning algorithms in practice. Recent works have built theoretical foundation for them by proving $\sqrt{T}$ regret bounds even when the losses are adversarial. Such bounds are tight…

Machine Learning · Computer Science 2023-02-21 Christoph Dann , Chen-Yu Wei , Julian Zimmert