Department of Computer Science

Algorithms, Data Structures, and Applications
Prof. Peter Widmayer
up 
prev
Home
People
Research
Publications
Teaching
    Ottmann-Widmayer
Student Projects
Talks
Open Positions
  Algorithmic Game Theory

Short course description

Game theory provides a good model for the behavior and interaction of the selfish users and programs in large-scale distributed computer systems without central control. The course discusses algorithmic aspects of game theory, such as a general introduction to game theory, auctions, mechanisms, the costs of a central control optimum versus those of an equilibrium under selfish agents, and algorithms and complexity of computing equilibria.

You can also have a look at the course page in the ETHZ Vorlesungsverzeichnis.

Weekly schedule

Lectures take place weekly on Thursdays, 08.15-10.00, in CAB G11, by


Problem classes take place weekly on Fridays, 10.15-12.00 in CAB G57 and 13.15-15.00 in LFW E15

Topics

  • Introduction (algorithmic game theory basics)
  • Basic Concepts of Game Theory (games in strategic form, games in extensive form, pure strategies and mixed strategies in games, solution concepts of games, important games)
  • Computational issues of game solutions
  • Algorithmic Mechanism Design (basic ideas of mechanism design, social welfare and social choice, voting systems, Vickrey's second price auction, VCG mechanisms, dominant strategies and the revelation principle, computational issues, applications)
  • Inefficiency of Equilibria (fundamental network examples, routing games, price of anarchy, price of stability, network creation games)

Literature

  • There are no lecture notes for the course. Taking your own notes is advisable.
  • [AGT] Algorithmic Game Theory, edited by N. Nisan, T. Roughgarden, E. Tardos, and V. Vazirani, Cambridge University Press (to appear in November 2007)
  • Game Theory and Strategy, Philip D. Straffin, The Mathematical Association of America, fifth printing, 2004
    (this book was used in the last year course and is available in the computer science library; its first few chapters cover some of the material of the first few weeks)

Advised Reading

  • The papers that follow are particularly relevant for some topics of the lecture.
  • [1] Vincent Conitzer, Tuomas Sandholm. Complexity Results about Nash Equilibria. In Proceedings of the 18th International Joint Conference on Artificial Intelligence (IJCAI), 2003.
  • [2] Noam Nisan, Amir Ronen. Algorithmic Mechanism Design. In Proceedings of the 31st ACM Symposium on Theory of Computing, pages 129-140, 1999.
  • [3] Aaron Archer, Eva Tardos. Truthful Mechanisms for One-Parameter Agents. In Proceedings of the IEEE Symposium on Foundations of Computer Science, pages 482-491, 2001.
  • [4] Daniel Lehmann, Liadan Ita O'Callaghan, Yoav Shoham. Truth revelation in approximately efficient combinatorial auctions. In Journal of the ACM. Volume 49, Issue 5, pages 577-602, 2002.

Schedule

Date

Topic

Exercise Sheets

Reference [AGT]. pp

Sep 27

Introduction to Algorithmic Game Theory

Oct 4

Strategic Games, domination, Nash equilibrium Exercise Sheet 1

3-13, 30-31

Oct 11

Mixed Strategies, Mixed Nash Equilibrium Exercise Sheet 2

8, 13

Oct 18

Zero-sum Games, Comput. Complexity of NE [1] Exercise Sheet 3

16-18, 30-33

Oct 25

VCG Mechanisms [2], Archer-Tardos one-param. Agents [3] Exercise Sheet 4

216-220

Nov 1

Combinatorial Auctions [4] Exercise Sheet 5
Sol. to ex. 5.2 a)

267-275

Nov 8

Social choice, Elections, Arrow's theorem Exercise Sheet 6

211-215

Nov 15

Gibbard-Satterthwaite Theorem, House Allocation Problem Exercise Sheet 7

215, 253-255

Nov 22

Selfish Routing, the Price of Anarchy Exercise Sheet 8

443-448, 461-467, 472-475

Nov 29

Network Formation Games Exercise Sheet 9

487-494

Dec 6

Global Connection Games, Potential Games Exercise Sheet 10

494-499

Dec 13

Keyword-Based Advertising Markets

699-702

Dec 20

Exam

Exercises

There will be weekly exercise assignments. They will appear on Friday morning in week i, and you are asked to hand in the solutions to the problems on Thursday in week i+1 during the lecture. The solutions to the problems will be discussed in the problem class on Friday in week i+1. The exercises will be corrected and marked as passed or failed.

Exam

There will be a written examination. You need to pass at least half of all (that is, 5 out of 10) exercise assignments to be admitted to the exam. All exercise assignments contribute with a weight of 20 % to the final grade.
The exam will take place on Thursday, December 20, from 8.00 to 10.00. Written notes of any kind will not be permitted.
You may want to have a look at these sample exam questions which give you an idea about the exam.

08-Nov-2007 / webgrpw[at]inf.ethz.ch