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I am a researcher in the theory group
in Microsoft Research, Redmond.
I am interested in what I call Automated Economics, which studies the question of how
technology can be used to improve the efficiency of economic systems.
My other interest is in Algorithms: I am interested in designing algorithms that are faster, simpler,
work online or in a distributed fashion, for some of the basic combinatorial optimization problems.
I am organizing a workshop on Online matching at STOC in Palo Alto on June 1st 2013.
I am giving a tutorial on Prior-Robust Optimization at EC in Philadelphia on June 16 2013.
I taught a course on online algorithms at UW this winter quarter, 2013.
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Email:
nikdev[AT]microsoft[DOT]com
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Sequential Auctions of Identical Items with Budget-Constrained Bidders
[pdf| Show/Hide Abstract]
with Zhiyi Huang and David Malec.
In this paper, we study sequential auctions with two budget constrained bidders and any number of identical items.
All prior results on such auctions consider only two items.
We construct a canonical outcome of the auction that is the only natural equilibrium and is unique under a refinement of subgame perfect equilibria.
We show certain interesting properties of this equilibrium; for instance, we show that the prices decrease as the auction progresses. This phenomenon has been observed in many experiments and
previous theoretic work attributed it to features such as uncertainty in the supply or risk averse bidders.
We show that such features are not needed for this phenomenon and that it arises purely from the most essential features: budget constraints and the sequential nature of the auction.
A little surprisingly we also show that in this equilibrium one agent wins all his items in the beginning and then the other agent wins the rest. The major difficulty in analyzing such sequential auctions has been in understanding how the selling prices of the first few rounds affect the utilities of the agents in the later rounds. We tackle this difficulty by identifying certain key properties of the auction and the proof is via a joint induction on all of them.
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Fisher Markets and Convex Programs
[pdf| Show/Hide Abstract]
Convex programming duality is usually stated in its most general form, with convex objective functions and convex constraints.
At this level of generality the process of constructing a dual of a convex program is not so simple, in contrast to LP duality where
there is a simple set of rules one can use for the same purpose.
In this article, we consider a special class of convex programs: with convex objective functions and {\em linear} constraints,
and derive a simple set of rules to construct the dual, analogous to LPs.
We also show applications of this: the main application in this article will be to derive convex programs for Fisher markets.
2013
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Whole-page Optimization and Submodular Welfare Maximization with Online Bidders [pdf | Show/Hide Abstract]
with Zhiyi Huang, Nitish Korula, Vahab Mirrokni and Qiqi Yan.
In Proc. ACM EC 2013
In the context of online ad serving, display ads may appear on different types of web-pages, where each
page includes several ad slots and therefore multiple ads can be shown on each page. The set of ads that
can be assigned to ad slots of the same page needs to satisfy various pre-specified constraints including
exclusion constraints, diversity constraints, and the like. Upon arrival of a user, the ad serving system
needs to allocate a set of ads to the current web-page respecting these per-page allocation constraints.
Previous slot-based settings ignore the important concept of a page, and may lead to highly suboptimal
results in general. In this paper, motivated by these applications in display advertising and inspired by the
submodular welfare maximization problem with online bidders, we study a general class of page-based ad
allocation problems, present the first (tight) constant-factor approximation algorithms for these problems,
and confirm the performance of our algorithms experimentally on real-world data sets.
A key technical ingredient of our results is a novel primal-dual analysis for handling free-disposal, which
updates dual variables using a "level function" instead of a single level, and unifies with previous analyses
of related problems. This new analysis method allows us to handle arbitrarily complicated allocation
constraints for each page. Our main result is an algorithm that achieves a 1 - 1/e - o(1) competitive
ratio. Moreover, our experiments on real-world data sets show signi?cant improvements of our page-based
algorithms compared to the slot-based algorithms.
Finally, we observe that our problem is closely related to the submodular welfare maximization (SWM)
problem. In particular, we introduce a variant of the SWM problem with online bidders, and show how to
solve this problem using our algorithm for whole page optimization.
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Budget Smoothing for Internet Ad Auctions: A Game Theoretic
Approach [pdf | Show/Hide Abstract]
with Deeparnab Chakrabarty, Denis Charles, Max Chickering and Lei Wang.
In Proc. ACM EC 2013
In Internet ad auctions, search engines often throttle budget constrained advertisers so as to spread their
spends across the specified time period. Such policies are known as budget smoothing policies. In this paper,
we perform a principled, game-theoretic study of what the outcome of an ideal budget smoothing algorithm
should be. In particular, we propose the notion of regret-free budget smoothing policies whose outcomes
throttle each advertiser optimally, given the participation of the other advertisers. We show that regret-free
budget smoothing policies always exist, and in the case of single slot auctions we can give a polynomial time
smoothing algorithm. Inspired by the existence proof, we design a heuristic for budget smoothing which
performs considerably better than existing benchmark heuristics.
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Prior-free Auctions for Budgeted Agents
[pdf | Show/Hide Abstract]
with Bach Q. Ha and Jason D. Hartline.
In Proc. ACM EC 2013
We consider prior-free auctions for revenue and welfare maximization when agents have a common budget.
The abstract environments we consider are ones where there is a downward-closed and symmetric feasibility
constraint on the probabilities of service of the agents. These environments include position auctions where
slots with decreasing click-through rates are auctioned to advertisers. We generalize and characterize the
envy-free benchmark from Hartline and Yan [2011] to settings with budgets and characterize the optimal
envy-free outcomes for both welfare and revenue. We give prior-free mechanisms that approximate these
benchmarks. A building block in our mechanism is a clinching auction for position auction environments.
This auction is a generalization of the multi-unit clinching auction of Dobzinski et al. [2008] and a special
case of the polyhedral clinching auction of Goel et al. [2012]. For welfare maximization, we show that this
clinching auction is a good approximation to the envy-free optimal welfare for position auction environments.
For profit maximization, we generalize the random sampling profit extraction auction from Fiat et al. [2002]
for digital goods to give a 10.0-approximation to the envy-free optimal revenue in symmetric, downward-
closed environments. Even without budgets this revenue maximization question is of interest and we obtain
an improved approximation bound of 7.5 (from 30.4 by Ha and Hartline [2012]).
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Tatonnement Beyond Gross Substitutes? Gradient Descent to the Rescue [pdf | Show/Hide Abstract]
with Yun Kuen Cheung and Richard Cole.
In Proc. STOC 2013
Tatonnement is a simple and natural rule for updating prices
in Exchange (Arrow-Debreu) markets. In this paper we de-
?ne a class of markets for which tatonnement is equivalent
to gradient descent. This is the class of markets for which
there is a convex potential function whose gradient is always
equal to the negative of the excess demand and we call it
Convex Potential Function (CPF) markets. We show the
following results.
- CPF markets contain the class of Eisenberg Gale (EG)
markets, de?ned previously by Jain and Vazirani.
- The subclass of CPF markets for which the demand
is a differentiable function contains exactly those mar-
kets whose demand function has a symmetric negative
semi-definite Jacobian.
- We de?ne a family of continuous versions of taton-
nement based on gradient descent using a Bregman
divergence. As we show, all processes in this family
converge to an equilibrium for any CPF market. This
is analogous to the classic result for markets satisfying
the Weak Gross Substitutes property.
- A discrete version of tatonnement converges toward
the equilibrium for the following markets of comple-
mentary goods; its convergence rate for these settings
is analyzed using a common potential function.
- Fisher markets in which all buyers have Leontief
utilities. The tatonnement process reduces the
distance to the equilibrium, as measured by the
potential function, to an epsilon fraction of its initial
value in O(1/epsilon) rounds of price updates.
- Fisher markets in which all buyers have comple-
mentary CES utilities. Here, the distance to thequilibrium is reduced to epsilon fraction of its initial
value in O(log(1/epsilon)) rounds of price updates.
This shows that tatonnement converges for the entire
range of Fisher markets when buyers have complementary CES utilities, in contrast to prior work, which
could analyze only the substitutes range, together with
a small portion of the complementary range.
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Randomized Primal-Dual Analysis of RANKING for Online Bipartite Matching
[pdf | Show/Hide Abstract]
with Kamal Jain and Bobby Kleinberg.
In Proc.
SODA 2013
We give a simple proof that the RANKING algorithm of Karp, Vazirani and Vazirani is 1-1/e competitive for the online bipartite matching problem. The proof is via a randomized primal-dual argument. Primal-dual algorithms have been successfully used for many online algorithm problems, but the dual constraints are always satisfied deterministically. This is the first instance of a non-trivial randomized primal-dual algorithm in which the dual constraints only hold in expectation. The approach also generalizes easily to the vertex-weighted version considered by Agarwal et al. Further we show that the proof is very similar to the deterministic primal-dual argument for the online budgeted allocation problem with small bids (also called the AdWords problem) of Mehta et al.
2012
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Asymptotically Optimal Algorithm for Stochastic Adwords
[pdf | Show/Hide Abstract]
with Balasubramanian Sivan and Yossi Azar.
In Proc.
EC 2012
In this paper we consider the adwords problem in the unknown distribution
model. We consider the case where the budget to bid ratio $k$ is at least 2,
and give improved competitive ratios. Earlier results had competitive ratios
better than $1-1/e$ only for ``large enough'' $k$, while our competitive ratio
increases continuously with $k$. For $k=2$ the competitive ratio we get is
$0.729$ and it is $0.9$ for $k=16$. We also improve the asymptotic competitive
ratio for large $k$ from $1 - O(\sqrt{\log n /k})$ to $1 - O(\sqrt{1 /k})$, thus
removing any dependence on $n$, the number of advertisers. This ratio is
optimal, even with known distributions. That is, even if an algorithm is
tailored to the distribution, it cannot get a competitive ratio of $1 -
o(\sqrt{1 /k})$, whereas our algorithm does not depend on the distribution. The
algorithm is rather simple, it computes a score for every advertiser based
on his original budget, the remaining budget and the remaining number of steps
in the algorithm and assigns a query to the advertiser with the highest bid plus
his score. The analysis is based on a ``hybrid argument'' that considers
algorithms that are part actual, part hypothetical, to prove that our (actual)
algorithm is better than a completely hypothetical algorithm whose performance
is easy to analyze.
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Online Matching with Concave Returns
[pdf | Show/Hide Abstract]
with Kamal Jain.
In Proc.
STOC 2012
We consider a significant generalization of the Adwords problem by allowing arbitrary concave returns,
and we characterize the optimal competitive ratio achievable.
The problem considers a sequence of items arriving online that have to be allocated to agents, with different agents bidding different amounts.
The objective function is the sum, over each agent i, of a monotonically non-decreasing concave function $M_i : R_+ \rightarrow R_+$ of the total amount allocated to i.
All variants of online matching problems (including the Adwords problem) studied in the literature consider the special case of budgeted linear functions,
that is, functions of the form $M_i( u_i) = \min \{u_i,B_i\}$ for some constant $B_i$.
The distinguishing feature of this paper is in allowing arbitrary concave returns.
The main result of this paper is that for each concave function $M$, there exists a constant $F(M) \leq 1$ such that
- there exists an algorithm with competitive ratio of \\$\min_i\{ F(M_i) \}$, independent of the sequence of items.
- No algorithm has a competitive ratio larger than $F(M)$ over all instances with $M_i= M$ for all $i$.
Our algorithm is based on the primal-dual paradigm and makes use of convex programming duality.
The upper bounds are obtained by formulating the task of finding the right counterexample as an optimization problem.
This path takes us through the calculus of variations which deals with optimizing over continuous functions.
The algorithm and the upper bound are related to each other via a set of differential equations, which
points to a certain kind of duality between them.
2011
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Prior-Independent Multi-parameter Mechanism Design
[pdf | Show/Hide Abstract]
with Jason D. Hartline, Anna R. Karlin, C. Thach Nguyen
In Proc.
WINE 2011
In a multi-unit unit-demand multi-item auction, an auctioneer is selling a
collection of different items to a set of agents each interested
in buying at most unit. Each agent has a different
private value for each of the items. We consider the problem of designing a
truthful auction that maximizes the auctioneer's profit in this
setting. Previously, there has been progress on this problem
in the setting in which each value is drawn from a known prior
distribution. Specifically, it has been shown how to design auctions tailored
to these priors that achieve a constant factor approximation ratio profit.
In this paper, we present the first prior-independent auction for this
setting. This auction is guaranteed to achieve a constant fraction
of the optimal expected profit for a large class of, so called, ``regular'' distributions,
without specific knowledge of the distributions.
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Online Algorithms with Stochastic Input
[pdf ]
In
ACM SIGEcom Exchanges, Vol. 10, No. 2, June 2011, Pages 40- 49.
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Near Optimal Online Algorithms and Fast Approximation
Algorithms for Resource Allocation Problems
[pdf | Show/Hide Abstract]
with Kamal Jain, Balasubramanian Sivan and Christopher A. Wilkens
In Proc.
ACM EC 2011
We present algorithms for a class of resource allocation problems both in the online setting with stochastic input
and in the offline setting. This class of problems contains many interesting special cases such as the Adwords problem.
In the online setting we introduce a new distributional model called the adversarial stochastic input model, which is
a generalization of the i.i.d model with unknown distributions, where the distributions can change over time. In this
model we give a 1 - O(epsilon) approximation algorithm for the resource allocation problem, with almost the weakest
possible assumption: the ratio of the maximum amount of resource consumed by any single request to the total capacity
of the resource, and the ratio of the profit contributed by any single request to the optimal profit is at most O (epsilon^2 /log(n/epsilon) where n is the number of resources available. There are instances where this ratio is epsilon^2/log n such that no randomized
algorithm can have a competitive ratio of 1 - o(epsilon^2) even in the i.i.d model. The upper bound on ratio that we require
improves on the previous upper-bound for the i.i.d case by a factor of n.
Our proof technique also gives a very simple proof that the greedy algorithm has a competitive ratio of 1 - 1/e for
the Adwords problem in the i.i.d model with unknown distributions, and more generally in the adversarial stochastic
input model, when there is no bound on the bid to budget ratio. All the previous proofs assume that either bids are very
small compared to budgets or something very similar to this.
In the offline setting we give a fast algorithm to solve very large LPs with both packing and covering constraints.
We give algorithms to approximately solve (within a factor of 1 + epsilon) the mixed packing-covering problem with
O(gamma m log(n/delta)/epsilon^2 ) oracle calls where the constraint matrix of this LP has dimension n x m, the success probability
of the algorithm is 1 - delta, and gamma is a parameter which is very similar to the ratio described for the online setting.
We discuss several applications, and how our algorithms improve existing results in some of these applications.
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Distributed Algorithms via Gradient Descent
for Fisher Markets
[pdf | Show/Hide Abstract]
with Benjamin Birnbaum and Lin Xiao.
In Proc.
ACM EC 2011
Designing distributed algorithms that converge quickly to an equi-
librium is one of the foremost research goals in algorithmic game
theory, and convex programs have played a crucial role in the de-
sign of algorithms for Fisher markets. In this paper we shed new
light on both aspects for Fisher markets with linear and spending
constraint utilities. We show fast convergence of the Proportional
Response dynamics recently introduced by Wu and Zhang [WZ07].
The convergence is obtained from a new perspective: we show that
the Proportional Response dynamics is equivalent to a gradient de-
scent algorithm (with respect to a Bregman divergence instead of
euclidean distance) on a convex program that captures the equilib-
ria for linear utilities. We further show that the convex program
program easily extends to the case of spending constraint utilities,
thus resolving an open question raised by [Vaz10]. This also gives
a way to extend the Proportional Response dynamics to spending
constraint utilties. We also prove a technical result that is interest-
ing in its own right: that the gradient descent algorithm based on a
Bregman divergence converges with rate O(1/t) under a condition
that is weaker than having Lipschitz continuous gradient (which is
the usual assumption in the optimization literature for obtaining the
same rate).
2010
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Fast Algorithms for Finding Matchings in Lopsided
Bipartite Graphs with Applications to Display Ads
[pdf | Show/Hide Abstract]
with Denis Charles, Max Chickering, Kamal Jain and Manan Sanghi.
In Proc.
ACM EC 2010
We derive efficient algorithms for both detecting and representing
matchings in lopsided bipartite graphs; such graphs have so many
nodes on one side that it is infeasible to represent them in memory or
to identify matchings using standard approaches. Detecting and
representing matchings in lopsided bipartite graphs is important for
allocating and delivering guaranteed-placement display
ads, where the corresponding bipartite graph of interest has nodes
representing advertisers on one side and nodes representing web-page
impressions on the other; real-world instances of such graphs can have
billions of impression nodes. We provide theoretical guarantees for
our algorithms, and in a real-world advertising application, we
demonstrate the feasibility of our detection algorithms.
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Monotonicity in Bargaining Networks
[pdf | Show/Hide Abstract]
with Yossi Azar, Kamal Jain and Yuval Rabani.
In Proc.
SODA 2010
We study bargaining networks, discussed in a recent paper of Kleinberg and
Tardos, from the perspective of cooperative game theory. In
particular we examine three solution concepts, the nucleolus, the core
center and the core median.
All solution concepts define unique solutions, so they provide
testable predictions.
We define a new monotonicity property that is a natural axiom of any bargaining game solution,
and we prove that all three of them satisfy this monotonicity property.
This is actually in contrast to the conventional wisdom for general cooperative games that
monotonicity and the core condition (which is a basic property that all three of them satisfy)
are incompatible with each other.
Our proofs are based on a
primal-dual argument (for the nucleolus) and on the FKG inequality (for the
core center and the core median). We further observe some qualitative differences between the
solution concepts. In particular, there are cases where a strict version of
our monotonicity property is a natural axiom, but only the core center and the core median
satisfy it. On the other hand, the nucleolus is easy to compute, whereas
computing the core center or the core median is #P-hard (yet it can be approximated in
polynomial time).
2009
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Convergence of Local Dynamics to Balanced Outcomes in Exchange Networks
[pdf | Show/Hide Abstract]
with Yossi Azar, Benjamin Birnbaum, L. Elisa Celis and Yuval Peres.
In Proc.
FOCS 2009
Bargaining games on exchange networks have been
studied by both economists and sociologists. A Balanced Out-
come for such a game is an equilibrium concept that
combines notions of stability and fairness. In a recent paper,
Kleinberg and Tardos introduced balanced outcomes to the
computer science community and provided a polynomial-time
algorithm to compute the set of such outcomes. Their work left
open a pertinent question: are there natural, local dynamics that
converge quickly to a balanced outcome? In this paper, we provide
a partial answer to this question by showing that simple edge-
balancing dynamics converge to a balanced outcome whenever one
exists.
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The Price of Truthfulness for Pay-Per-Click Auctions
[pdf | Show/Hide Abstract]
with Sham Kakade.
In Proc.
ACM EC 2009.
We analyze the problem of designing a truthful pay-per-click auction where
the click-through-rates (CTR) of the bidders are unknown to the auction. Such an auction faces the classic explore/exploit dilemma: while gathering information about the click through rates of advertisers, the mechanism may loose revenue; however, this gleaned information may prove valuable in the future for a more profitable allocation. In this sense, such mechanisms are prime candidates to be designed using multi-armed bandit techniques. However, a naive application of multi-armed bandit algorithms would not take into account the strategic considerations of the players --- players might manipulate their bids (which determine the auction's revenue) in a way as to maximize their own utility. Hence,
we consider the natural restriction that the auction be truthful.
The revenue that we could hope to achieve is the expected revenue of a
Vickrey auction that knows the true CTRs, and we define the truthful regret to be the difference
between the expected revenue of the auction and this Vickrey revenue. This work sharply characterizes what regret is achievable, under a truthful restriction. We show that this truthful restriction imposes statistical limits on the achievable regret --- the achievable regret is $\tilde{\Theta}(T^{2/3})$, while for traditional bandit algorithms (without the truthful restriction) the achievable regret is $\tilde{\Theta}(T^{1/2})$ (where $T$ is the number of rounds). We term the extra $T^{1/6}$ factor, the `price of truthfulness'.
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The Adwords Problem: Online Keyword Matching
with Budgeted Bidders under Random Permutations
[pdf | Show/Hide Abstract]
with Tom Hayes.
In Proc.
ACM EC 2009.
We consider the problem of a search engine trying to assign a sequence
of search keywords to a set of competing bidders, each with a daily
spending limit. The goal is to maximize the revenue generated by these
keyword sales, bearing in mind that, as some bidders may eventually
exceed their budget, not all keywords should be sold to the highest bidder.
We assume that the sequence of keywords (or equivalently, of bids)
is revealed on-line. Our concern will be the competitive ratio for this
problem versus the off-line optimum.
We extend the current literature on this problem by considering the setting
where the keywords arrive in a random order. In this setting we are able to
achieve a competitive ratio of $1-\epsilon$ under some mild, but necessary,
assumptions. In contrast, it is already known that when the keywords arrive
in an adversarial order, the best competitive ratio is bounded away from 1.
Our algorithm is motivated by PAC learning, and proceeds in two parts: a
training phase, and an exploitation phase.
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Limited and Online Supply and the Bayesian foundations of prior-free mechanism design
[pdf | Show/Hide Abstract]
with Jason Hartline.
In Proc.
ACM EC 2009.
We study auctions for selling a limited supply of a single commodity
in the case where the supply is known in advance and the case it is
unknown and must be instead allocated in an online fashion. The
latter variant was proposed by Mahdian and Saberi as a model of an
important phenomena in auctions for selling Internet advertising:
advertising impressions must be allocated as they arrive and the total
quantity available is unknown in advance. We describe the Bayesian
optimal mechanism for these variants and extend the random sampling
auction of Goldberg et al. to address the prior-free
case.
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Cloud Scheduling with Setup Cost
[pdf| Show/Hide Abstract]
with Yossi Azar, Naama Ben-Aroya and Navendu Jain.
In Proc.
SPAA 2013
In this paper, we investigate the problem of online task
scheduling of jobs such as MapReduce jobs, Monte Carlo
simulations and generating search index from web
documents, on cloud computing infrastructures. We consider the
virtualized cloud computing setup comprising machines that
host multiple identical virtual machines (VMs) under pay-as-you-go charging,
and that booting a VM requires a constant setup time. The cost of job computation depends on
the number of VMs activated, and the VMs can be activated
and shutdown on demand. We propose a new bi-objective
algorithm to minimize the maximum task delay, and the
total cost of the computation. We study both the clairvoyant case,
where the duration of each task is known upon its
arrival, and the more realistic non-clairvoyant case.
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An O(n log n) Algorithm for a
Load Balancing Problem on Paths
[pdf| Show/Hide Abstract]
with Uri Feige.
In Proc.
WADS 2011
We study the following load balancing problem on paths
(PB). There is a path containing n vertices. Every vertex i has an initial
load h i , and every edge (j, j + 1) has an initial load w j that it needs
to distribute among the two vertices that are its endpoints. The goal is
to distribute the load of the edges over the vertices in a way that will
make the loads of the vertices as balanced as possible (formally, mini-
mizing the sum of squares of loads of the vertices). This problem can be
solved in polynomial time, e.g, by dynamic programming. We present an
algorithm that solves this problem in time O(n log n).
As a mental aide in the design of our algorithm, we first design a hy-
draulic apparatus composed of bins (representing vertices), tubes (rep-
resenting edges) that are connected between bins, cylinders within the
tubes that constrain the flow of water, and valves that can close the con-
nections between bins and tubes. Water may be poured into the various
bins, to levels that correspond to the initial loads in the input to the PB
problem. When all valves are opened, the water flows between bins (to
the extent that is feasible due to the cylinders) and stabilizes at levels
that are the correct output to the respective PB problem. Our algorithm
is based on a fast simulation of the behavior of this hydraulic apparatus,
when valves are opened one by one.
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Real-Time Bidding Algorithms for Performance-Based Display Ad Allocation
[pdf| Show/Hide Abstract]
with Ye Chen, Pavel Berkhin and Bo Anderson .
(To appear) In Proc.
KDD 2011
We describe a real-time bidding algorithm for performance-based display ad allocation. A central issue in performance display advertising is matching campaigns to ad impressions, which can be formulated as a constrained optimization problem that maximizes revenue subject to constraints such as budget limits and inventory availability. The current practice is to solve the optimization problem offline at a tractable level of impression granularity (e.g., the placement level), and to serve ads online based on the precomputed static delivery scheme. Although this offline approach takes a global view to achieve optimality, it fails to scale to ad delivery decision making at an individual impression level. Therefore, we propose a real-time bidding algorithm that enables fine-grained impression valuation (e.g., targeting users with real-time conversion data), and adjusts value-based bid according to real-time constraint snapshot (e.g., budget consumption level). Theoretically, we show that under a linear programming (LP) primal-dual formulation, the simple real-time bidding algorithm is indeed an online solver to the original primal problem by taking the optimal solution to the dual problem as input. In other words, the online algorithm guarantees the offline optimality given the same level of knowledge an offline optimization would have. Empirically, we develop and experiment with two real-time bid adjustment approaches to adapting to the non-stationary nature of the marketplace: one adjusts bids against real-time constraint satisfaction level using control-theoretic methods, and the other adjusts bids also based on the historical bidding landscape statistically modeled. Finally, we show experimental results with real-world ad serving data.
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Local Dynamics in Bargaining Networks via Random-Turn Games
[pdf| Show/Hide Abstract]
with Elisa Celis and Yuval Peres.
In Proc.
WINE 2010
We present a new technique for analyzing the rate of convergence
of local dynamics in bargaining networks. The technique reduces
balancing in a bargaining network to optimal play in a random-turn
game. We analyze this game using techniques from martingale and
Markov chain theory. We obtain a tight polynomial bound on the rate
of convergence for a nontrivial class of unweighted graphs (the previous
known bound was exponential). Additionally, we show this technique
extends naturally to many other graphs and dynamics.
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Market Equilibrium with Transaction Costs
[pdf| Show/Hide Abstract]
with Sourav Chakraborty and Chinmay Karande.
In Proc.
WINE 2010
Identical products being sold at different prices in different
locations is a common phenomenon. To model such scenarios, we supplement the classical Fisher market model by introducing {\em transaction costs}. For every buyer $i$ and good $j$, there is a transaction cost of $c_{ij}$; if the price of good $j$ is $p_j$, then the cost to the buyer $i$ {\em per unit} of $j$ is $p_j + c_{ij}$. The same good can thus be sold at different (effective) prices to different buyers. We provide a combinatorial algorithm that computes $\epsilon$-approximate equilibrium prices and allocations in $O\left(\frac{1}{\epsilon}(n+\log{m})mn\log(B/\epsilon)\right)$
operations - where $m$ is the number goods, $n$ is the number of buyers and $B$ is the sum of the budgets of all the buyers.
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An Online Multi-unit Auction with Improved Competitive Ratio
[pdf | Show/Hide Abstract]
with Sourav Chakraborty.
In Proc.
WINE 2009.
We improve the best known competitive ratio (from 1/4 to 1/2),
for the online multi-unit allocation problem,
where the objective is to maximize the single-price revenue.
Moreover, the competitive ratio of our algorithm tends to 1,
as the bid-profile tends to "smoothen".
This algorithm is used as a subroutine in designing truthful auctions
for the same setting: the allocation has to be done online,
while the payments can be decided at the end of the day.
Earlier, a reduction from the auction design problem to the allocation problem
was known only for the unit-demand case.
We give a reduction for the general case when the bidders have
decreasing marginal utilities.
The problem is inspired by sponsored search auctions.
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A Computational Theory of Awareness and Decision Making
[pdf | Show/Hide Abstract]
with Lance Fortnow.
In Proc.
Theoretical Aspects of Rationality and Knowledge, TARK 2009
We exhibit a new computational-based definition of awareness,
informally that our level of unawareness of an object is the amount
of time needed to generate that object within a certain environment.
We give several examples to show this notion matches our intuition
in scenarios where one organizes, accesses and transfers
information. We also give a formal process-independent definition of
awareness based on Levin's universal enumeration.
We show the usefulness of computational awareness by showing how it
relates to decision making, and how others can manipulate our
decision making with appropriate advertising, in particular, we show
connections to sponsored search and brand awareness. Understanding
awareness can also help rate the effectiveness of various user
interfaces designed to access information.
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Market Equilibria in Polynomial time for
fixed number of goods or agents
[pdf | Show/Hide Abstract]
with Ravi Kannan.
In Proc.
FOCS 2008.
We consider markets in the classical Arrow-Debreu model. There are n
agents and m goods. Each buyer has a concave utility function
(of the bundle of goods he/she buys) and an initial bundle. At an
``equilibrium'' set of prices for goods, if each individual buyer
separately exchanges the initial bundle for an optimal bundle at
the set prices, the market clears, i.e., all goods are exactly
consumed. Classical theorems guarantee the existence of equilibria,
but computing them has been the subject of much recent research.
In the related area of Multi-Agent Games, much attention has been paid to
the complexity as well as algorithms.
While most general problems are
hard, polynomial time algorithms have been developed for restricted
classes of games, when one assumes the
number of strategies is constant.
For the Market Equilibrium problem, several important special cases of
utility functions have been tackled.
Here we begin a program for this
problem similar to that for multi-agent games, where general utilities
are considered. We begin by showing that if the utilities are
separable piece-wise linear concave (PLC) functions, and the number of
goods (or alternatively the number of buyers) is constant, then we can
compute an exact equilibrium in polynomial time. Our
technique for the constant number of goods is to decompose the space
of price vectors into cells using certain hyperplanes, so that in each
cell, each buyer's threshold marginal utility is known. Still, one
needs to solve a linear optimization problem in each cell.
We then show the main result - that for general
(non-separable) PLC utilities, an exact equilibrium can be found in
polynomial time provided the number of goods is constant. The starting
point of the algorithm is a ``cell-decomposition'' of the space of
price vectors using polynomial surfaces (instead of hyperplanes).
We use results from computational algebraic geometry to bound the
number of such cells.
For solving the problem inside each cell, we introduce and use a novel
LP-duality based method. We note that if the number of
buyers and agents both can vary, the problem is PPAD hard even for the
very special case of PLC utilities such as Leontief utilities and separable PLC utilities.
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New Geometry-Inspired Relaxations and Algorithms for the Metric Steiner Tree Problem.
[pdf | Show/Hide Abstract]
with Deeparnab Chakrabarty, and Vijay Vazirani.
To appear in Math Programming (Series A) Volume 122, Number 2 (April 2010).
(Preliminary version in IPCO 2008. )
Determining the integrality gap of the bidirected cut relaxation for the metric Steiner tree
problem, and exploiting it algorithmically, is a long-standing open problem. We use geometry
to define an LP whose dual is equivalent to this relaxation. This opens up the possibility of
using the primal-dual schema in a geometric setting for designing an algorithm for this problem.
Using this approach, we obtain a 4/3 factor algorithm and integrality gap bound for the case
of quasi-bipartite graphs; the previous best integrality gap upper bound being 3/2. We
also obtain a factor $sqrt{2}$ strongly polynomial algorithm for this class of graphs.
A key difficulty experienced by researchers in working with the bidirected cut relaxation
was that any reasonable dual growth procedure produces extremely unwieldy dual solutions.
A new algorithmic idea helps finesse this difficulty - that of reducing the cost of certain edges
and constructing the dual in this altered instance - and this idea can be extracted into a new
technique for running the primal-dual schema in the setting of approximation algorithms.
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On Computing the Distinguishing Numbers of Planar Graphs and Beyond: a Counting Approach
[pdf | Show/Hide Abstract]
with V. Arvind and Christine Cheng.
In
SIAM Journal on Discrete Mathematics, vol. 22, no. 4 (October 2008), pp. 1297-1324.
A vertex k-labeling of graph G is distinguishing if the only automorphism that preserves the labels
of G is the identity map. The distinguishing number of G, D(G), is the smallest integer k for which G
has a distinguishing k-labeling. In this paper, we apply the principle of inclusion-exclusion and develop
recursive formulas to count the number of inequivalent distinguishing k-labelings of a graph. Along the
way, we prove that the distinguishing number of a planar graph can be computed in time polynomial in
the size of the graph.
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On the Equivalence of Competitive and Submodular markets
[pdf | Show/Hide Abstract]
with Deeparnab Chakrabarty.
In Operations Research Letters, vol. 37, no. 3, pp. 155 - 158, 2009.
Prelim. version in Proc.
WINE 2007
In this paper, we study competitive markets - a market is
competitive if increasing the endowment of any one buyer does not in-
crease the equilibrium utility of any other buyer. In the Fisher setting,
competitive markets contain all markets with weak gross substitutabil-
ity (WGS), a property which enable efficient algorithms for equilibrium
computation.
We show that every uniform utility allocation (UUA) market which is
competitive, is a submodular utility allocation (SUA) market. Our result
provides evidence for the existence of efficient algoritheorems for the class
of competitive markets.
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Computing Market Equilibrium: Beyond Weak Gross Substitutes
[pdf | Show/Hide Abstract]
with Chinmay Karande.
In Proc.
WINE 2007
The property of Weak Gross Substitutibility (WGS) of goods in a market has been found
to be conducive to efficient algorithms for finding equilibria. In this paper, we give a natural
definition of a $\delta$ approximate WGS property, and show that the auction algorithm of Garg and Kapoor
can be extended to give an $\epsilon + \delta$ approximate equilibrium for markets with this
property.
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New results on Rationality and Strongly Poylnomial Solvability in Eisenberg-Gale markets
[pdf | Show/Hide Abstract]
with Deeparnab Chakrabarty and Vijay Vazirani.
In Proc.
WINE 2006
We study the structure of EG(2) markets, the class of Eisenberg-Gale markets with
two agents. We prove that all markets in this class are rational and they admit strongly
polynomial algorithms whenever the polytope containing the set of feasible utilities of
the two agents can be described via a combinatorial LP. This helps resolve positively
the status of two markets left as open problems by Jain and Vazirani: the capacity allocation
market in a directed graph with two source-sink pairs and the network coding market
in a directed network with two sources.
Our algorithms for solving the corresponding nonlinear convex programs are
fundamentally different from those obtained by Jain and Vazirani; whereas they use the primal-
dual schema, we use a carefully constructed binary search.
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Integrality Gaps for Sparsest Cut and Minimum Linear Arrangement Problems
[pdf | Show/Hide Abstract]
with Subhash A. Khot, Rishi Saket and Nisheeth K. Vishnoi.
In Proc.
STOC 2006.
Arora, Rao and Vazirani
showed that the standard semi-definite programming (SDP)
relaxation of the sparsest cut problem with the triangle
inequality
constraints has an integrality gap of $O(\sqrt{\log n})$. They
conjectured that the gap is bounded from above by a constant. In this paper, we disprove
this conjecture
by constructing an $\Omega(\log \log n)$ integrality gap
instance. Khot and Vishnoi had earlier disproved the
non-uniform version of this Conjecture.
A simple ``stretching'' of the integrality gap instance for the
sparsest cut problem serves as an $\Omega(\log \log n)$ integrality gap
instance for the SDP relaxation of the Minimum Linear Arrangement problem. This
SDP relaxation was considered in Charikar et. al. and Feige and Lee, where it was shown that its integrality gap is bounded
from above by $O(\sqrt{\log n} \log \log n).$
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Price of Anarchy, Locality Gap, and
a Network Service Provider Game
[pdf | Show/Hide Abstract]
with Naveen Garg, Rohit Khandekar,
Vinayaka Pandit, Amin Saberi, and Vijay V. Vazirani.
In Proc.
WINE 2005
In this paper, we define a network service provider game. We show that
the price of anarchy of the defined game can be bounded by analyzing
a local search heuristic for a related facility location
problem called the $k$-facility location problem. As a result, we show
that the $k$-facility location problem has a locality gap of 5. This
result is of interest on its own. Our result gives evidence to the
belief that the price of anarchy of certain games are related to
analysis of local search heuristics.
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On the complexity of Hilbert's 17th
problem
[pdf | Show/Hide Abstract]
with Richard J. Lipton and Nisheeth Vishnoi.
In Proc.
FSTTCS 2004.
Hilbert posed the following problem as the 17th in the list of 23 problems in his famous 1900 lecture:
Given a
multivariate polynomial that takes only non-negative values over
the reals, can it be represented as a sum of squares of rational
functions?
In 1927, E.~Artin gave an affirmative answer to this question.
His result guaranteed the existence of such a finite representation and
raised the following important question:
What is the {\bf minimum number} of rational functions needed to represent
any non-negative $n$-variate, degree $d$ polynomial?
In 1967, Pfister proved that any $n$-variate non-negative
polynomial over the reals can be written as sum of squares of at most $2^n$ rational functions.
In spite of a considerable effort by
mathematicians for over 75 years, it is not known
whether $n+2$ rational functions are sufficient!
In lieu of the lack of progress towards the resolution of this question, we initiate the study of Hilbert's 17th problem from the point
of view of Computational Complexity.
In this setting, the following question is a natural relaxation:
What is the {\bf descriptive complexity} of the sum of squares representation (as rational functions) of
a non-negative, $n$-variate, degree $d$ polynomial?
We consider arithmetic circuits as a natural representation of rational functions.
We are able to show, assuming a standard conjecture in complexity theory, that it is impossible that every non-negative, $n$-variate, degree four
polynomial can be represented as a sum of squares of a small (polynomial in $n$) number of rational functions, each of which has a small size arithmetic circuit (over the rationals) computing it.
Our result points to the direction that it is unlikely
that every non-negative, $n$-variate polynomial over the reals can be written as a sum of squares of a polynomial (in $n$) number of rational functions. Further, relating to standard (and believed to be hard to prove) complexity-theoretic conjectures sheds some light on why it has been difficult for mathematicians to close the $n+2$ and $2^n$ gap. We hope that our line of work will play an important role in the resolution of this question.
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The Spending Constraint Model for Market
Equilibrium: Algorithmic, Existence and Uniqueness results
[pdf | Show/Hide Abstract]
with
Vijay V. Vazirani.
In Proc.
STOC 2004.
The traditional model of market equilibrium supports impressive existence results, including the celebrated
Arrow-Debreu Theorem. However, in this model, polynomial time
algorithms for computing (or approximating) equilibria are
known only for linear utility functions. We present a new,
and natural, model of market equilibrium that not only admits existence and uniqueness results paralleling those for
the traditional model but is also amenable to efficient algorithms.
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An Improved Approximation Scheme for
Computing Arrow-Debreu Prices for the Linear Case
[pdf | Show/Hide Abstract]
with Vijay Vazirani.
In Proc.
FSTTCS 2003.
Recently, Jain, Mahdian and Saberi
had given a FPTAS for the problem of computing a market
equilibrium in the Arrow-Debreu setting, when the utilities are linear functions. Their running
time depended on the size of the numbers representing the
utilities and endowments of the buyers. In this paper, we give a
strongly polynomial time approximation scheme for this problem.
Our algorithm builds upon the main ideas
behind the algorithm in Devanur et. al.
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Strategyproof cost-sharing Mechanisms
for Set Cover and Facility Location Games
[pdf | Show/Hide Abstract]
with Milena Mihail and Vijay Vazirani.
Decision Support Systems 39 (March 2005), pp 11--22.
Prelim. version in Proc.
ACM EC 2003
Strategyproof cost-sharing mechanisms, lying in the core,
that recover $1/\alpha$ fraction of the cost, are
presented for the set cover and facility location games; $\alpha =
O(\log n)$ for the former and 1.861 for the latter. Our mechanisms
utilize approximation algorithms for these problems based
on the method of dual-fitting.
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Market Equilibrium via a Primal-Dual-Type Algorithm
[pdf | Show/Hide Abstract]
with Christos H. Papadimitriou, Amin Saberi and Vijay V.Vazirani.
In The Journal of the ACM, vol. 55, no. 5 (October 2008), pp 1--18.
Prelim version appeared in FOCS 2002.
We give the first polynomial time algorithm for exactly computing an equilibrium
for the linear utilities case of the market model defined by Fisher.
Our algorithm uses the primal-dual paradigm in the enhanced setting of KKT conditions
and convex programs. We pinpoint the added difficulty raised by this setting and the
manner in which our algorithm circumvents it.
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