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We consider the coupled dynamics of the adaption of network structure and the evolution of strategies played by individuals occupying the network vertices. We propose a computational model in which each agent plays a $n$-round Prisoner's…

Physics and Society · Physics 2007-11-05 Feng Fu , Xiaojie Chen , Lianghuan Liu , Long Wang

In the quest for market mechanisms that are easy to implement, yet close to optimal, few seem as viable as posted pricing. Despite the growing body of impressive results, the performance of most posted price mechanisms however, rely…

Computer Science and Game Theory · Computer Science 2016-09-23 Shreyas Sekar

Recent antitrust regulations in several countries have granted exemptions for collusion aimed at achieving environmental goals. Firms can apply for exemptions if collusion helps to develop or to implement costly clean technology,…

Theoretical Economics · Economics 2024-11-12 Nigar Hashimzade , Limor Hatsor , Artyom Jelnov

In railway infrastructure, construction and maintenance is typically procured using competitive procedures such as auctions. However, these procedures only fulfill their purpose - using (taxpayers') money efficiently - if bidders do not…

General Economics · Economics 2023-04-25 Hannes Wallimann , Silvio Sticher

Existing permissionless blockchain solutions rely on peer-to-peer propagation mechanisms, where nodes in a network transfer transaction they received to their neighbors. Unfortunately, there is no explicit incentive for such transaction…

Cryptography and Security · Computer Science 2018-06-15 Oguzhan Ersoy , Zhijie Ren , Zekeriya Erkin , Reginald L. Lagendijk

We study a market mechanism that sets edge prices to incentivize strategic agents to efficiently share limited network capacity. In this market, agents form coalitions, with each coalition sharing a unit capacity of a selected route and…

Computer Science and Game Theory · Computer Science 2025-11-19 Saurabh Amin , Patrick Jaillet , Haripriya Pulyassary , Manxi Wu

In the design of incentive compatible mechanisms, a common approach is to enforce incentive compatibility as constraints in programs that optimize over feasible mechanisms. Such constraints are often imposed on sparsified representations of…

Computer Science and Game Theory · Computer Science 2020-11-24 Taylor Lundy , Hu Fu

We analyze the delegation of pricing by participants, representing firms, to a collusive, self-learning algorithm in a repeated Bertrand experiment. In the baseline treatment, participants set prices themselves. In the other treatments,…

General Economics · Economics 2025-11-03 Hans-Theo Normann , Nina Rulié , Olaf Stypa , Tobias Werner

Transaction Fee Mechanism Design studies auctions run by untrusted miners for transaction inclusion in a blockchain. Under previously-considered desiderata, an auction is considered `good' if, informally-speaking, each party (i.e., the…

Computer Science and Game Theory · Computer Science 2024-10-25 Aadityan Ganesh , Clayton Thomas , S. Matthew Weinberg

In the study of the evolution of cooperation, many mechanisms have been proposed to help overcome the self-interested cheating that is individually optimal in the Prisoners' Dilemma game. These mechanisms include assortative or networked…

Physics and Society · Physics 2022-05-03 Daniel B. Cooney

Algorithmic pricing is increasingly shaping market competition, raising concerns about its potential to compromise competitive dynamics. While prior work has shown that reinforcement learning (RL)-based pricing algorithms can lead to tacit…

Machine Learning · Computer Science 2025-04-09 Sebastián Tinoco , Andrés Abeliuk , Javier Ruiz del Solar

In applications such as participatory sensing and crowd sensing, self-interested agents exert costly effort towards achieving an objective for the system operator. We study such a setup where a principal incentivizes multiple agents of…

Signal Processing · Electrical Eng. & Systems 2022-05-11 Nayara Aguiar , Parv Venkitasubramaniam , Vijay Gupta

In this paper, we rigorously study the problem of cost optimisation of hybrid (mixed) institutional incentives, which are a plan of actions involving the use of reward and punishment by an external decision-maker, for maximising the level…

Populations and Evolution · Quantitative Biology 2023-10-09 M. H. Duong , C. M. Durbac , T. A. Han

We study multidimensional mechanism design in a common scenario where players have private information about their willingness to pay and their ability to pay. We provide a complete characterization of dominant-strategy incentive-compatible…

Computer Science and Game Theory · Computer Science 2014-05-01 Ahuva Mualem

This paper studies a preference evolution model in which a population of agents are matched to play a sequential prisoner's dilemma in an incomplete information environment. An institution can design an incentive-compatible screening…

General Economics · Economics 2023-11-07 Ethan Holdahl , Jiabin Wu

In multi-agent reinforcement learning systems, the actions of one agent can have a negative impact on the rewards of other agents. One way to combat this problem is to let agents trade their rewards amongst each other. Motivated by this,…

Artificial Intelligence · Computer Science 2022-07-25 Michael Kölle , Lennart Rietdorf , Kyrill Schmid

The popular generalized second price (GSP) auction for sponsored search is built upon a separable model of click-through-rates that decomposes the likelihood of a click into the product of a "slot effect" and an "advertiser effect" --- if…

Computer Science and Game Theory · Computer Science 2014-10-14 Ruggiero Cavallo , Christopher A. Wilkens

Cooperation is fundamental to human societies, and indirect reciprocity, where individuals cooperate to build a positive reputation for future benefits, plays a key role in promoting it. Previous theoretical and experimental studies have…

Physics and Society · Physics 2025-01-20 Yohsuke Murase

This paper focuses on the coordination of a large population of dynamic agents with private information over multiple periods. Each agent maximizes the individual utility, while the coordinator determines the market rule to achieve group…

Systems and Control · Computer Science 2015-10-05 Sen Li , Wei Zhang

Shill bidding occurs when fake bids are introduced into an auction on the seller's behalf in order to artificially inflate the final price. This is typically achieved by the seller having friends bid in her auctions, or the seller controls…

Computer Science and Game Theory · Computer Science 2018-12-31 Jarrod Trevathan , Claire Aitkenhead , Nazia Majadi , Wayne Read