mlsanityData to 14 Oct 2026

Subsidy design for better social outcomes

arXiv 2409.03129 ↗First posted 4 Sep 2024cs.GT cs.LGcited by 1

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Abstract (arXiv)

Overcoming the impact of selfish behavior of rational players in multiagent systems is a fundamental problem in game theory. Without any intervention from a central agent, strategic users take actions in order to maximize their personal utility, which can lead to extremely inefficient overall system performance, often indicated by a high Price of Anarchy. Recent work (Lin et al. 2021) investigated and formalized yet another undesirable behavior of rational agents, that of avoiding freely available information about the game for selfish reasons, leading to worse social outcomes. A central planner can significantly mitigate these issues by injecting a subsidy to reduce certain costs associated with the system and obtain net gains in the system performance. Crucially, the planner needs to determine how to allocate this subsidy effectively. We formally show that designing subsidies that perfectly optimize the social good, in terms of minimizing the Price of Anarchy or preventing the information avoidance behavior, is computationally hard under standard complexity theoretic assumptions. On the positive side, we show that we can learn provably good values of subsidy in repeated games coming from the same domain. This data-driven subsidy design approach avoids solving computationally hard problems for unseen games by learning over polynomially many games. We also show that optimal subsidy can be learned with no-regret given an online sequence of games, under mild assumptions on the cost matrix. Our study focuses on two distinct games: a Bayesian extension of the well-studied fair cost-sharing game, and a component maintenance game with engineering applications.

Key facts. Cited by 1 paper in the map (data through 14 Oct 2026). Builds on 12 of its 50 references that are in the map. First posted on arXiv 4 Sep 2024.

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12 of 50 references.

References · 12

  1. 2015A PAC Approach to Application-Specific Algorithm Selectioncited by 58
  2. 2017Dispersion for Data-Driven Algorithm Design, Online Learning, and Private Optimizationcited by 37
  3. 2016Learning-Theoretic Foundations of Algorithm Configuration for Combinatorial Partitioning Problemscited by 30
  4. 2018Data-Driven Clustering via Parameterized Lloyd's Familiescited by 17
  5. 2019Semi-bandit Optimization in the Dispersed Settingcited by 14
  6. 2021Data driven semi-supervised learningcited by 14
  7. 2022Provably tuning the ElasticNet across instancescited by 14
  8. 2020An Analysis of Robustness of Non-Lipschitz Networkscited by 12
  9. 2022Accelerating ERM for data-driven algorithm design using output-sensitive techniquescited by 8
  10. 2020Inducing Equilibria in Networked Public Goods Games through Network Structure Modificationcited by 5
  11. 2021The Effectiveness of Subsidies and Tolls in Congestion Gamescited by 3
  12. 2024Learning accurate and interpretable tree-based modelscited by 3

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