Covers all theoretical and applied aspects at the intersection of computer science and game theory, including work in mechanism design, learning in games, and algorithmic game theory.
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In the contest design problem, there are $n$ strategic contestants, each of whom decides an effort level. A contest designer with a fixed budget must then design a mechanism that allocates a prize $p_i$ to the $i$-th rank based on the outcome, to incentivize contestants to exert higher costly efforts and induce high-quality outcomes. In this paper, we significantly deepen our understanding of optimal mechanisms under general settings by considering nonconvex objectives in contestants' qualities. Notably, our results accommodate the following objectives: (i) any convex combination of user welfare (motivated by recommender systems) and the average quality of contestants, and (ii) arbitrary posynomials over quality, both of which may neither be convex nor concave. In particular, these subsume classic measures such as social welfare, order statistics, and (inverse) S-shaped functions, which have received little or no attention in the contest literature to the best of our knowledge. Surprisingly, across all these regimes, we show that the optimal mechanism is highly structured: it allocates potentially higher prize to the first-ranked contestant, zero to the last-ranked one, and equal prizes to the all intermediate contestants, i.e., $p_1 \ge p_2 = \ldots = p_{n-1} \ge p_n = 0$. Thanks to the structural characterization, we obtain a fully polynomial-time approximation scheme given a value oracle. Our technical results rely on Schur-convexity of Bernstein basis polynomial-weighted functions, total positivity and variation diminishing property. En route to our results, we obtain a surprising reduction from a structured high-dimensional nonconvex optimization to a single-dimensional optimization by connecting the shape of the gradient sequences of the objective function to the number of transition points in optimum, which might be of independent interest.
2604.04729We investigate the convexity of cooperative games arising from network flow problems. While it is well-known that flow games are totally balanced, a complete characterization of their convexity has remained an open problem. In this paper, we provide a necessary and sufficient characterization of the networks that induce convex flow games. We show that a flow game is convex if and only if the underlying network is acyclic and admits an arc cover by $s$-$t$ paths that are disjoint at their bottleneck arcs. Specifically, every bottleneck arc must belong to exactly one path, and every non-bottleneck arc must possess sufficient capacity. To derive this characterization, we establish six structural properties of convex flow games. Additionally, we prove that our characterization can be verified efficiently, yielding a polynomial-time algorithm to recognize convex flow games. Since the class of flow games coincides exactly with the class of non-negative totally balanced games, as established by Kalai and Zemel (1982), our structural and algorithmic characterization applies to all such games, provided they are represented in their network form.
We present a telecom-native auction mechanism for allocating bandwidth and time slots across heterogeneous-delay networks, ranging from low-Earth-orbit (LEO) satellite constellations to delay-tolerant deep-space relays. The Lorentz-Invariant Auction (LIA) treats bids as spacetime events and reweights reported values based on the \emph{horizon slack}, a causal quantity derived from the earliest-arrival times relative to a public clearing horizon. Unlike other delay-equalization rules, LIA combines a causal-ordering formulation, a uniquely exponential slack correction implied by a semigroup-style invariance axiom, and a critical-value implementation that ensures truthful reported values once slacks are fixed by trusted infrastructure. We analyze the incentive result in the exogenous-slack regime and separately examine bounded slack-estimation error and endogenous-delay limitations. Under fixed feasible slacks, LIA is individually rational and achieves welfare at least \(e^{-λΔ}\) relative to the optimal feasible allocation, where \(Δ\) is the slack spread. We evaluate LIA on STARLINK-200, INTERNET-100, and DSN-30 across 52,500 baseline instances with market sizes \(n\in\{10,20,30,40,50\}\) and conduct additional robustness sweeps. On Starlink and Internet, LIA maintains near-efficiency while eliminating measured timing rents. However, on DSN, welfare is lower in thin markets but improves with depth. We also distinguish winner-determination time from the background cost of maintaining slack estimates and study robustness beyond independent and identically distributed (iid) noise through error-spread bounds and structured (distance-biased and subnetwork-correlated) noise models. These results suggest that causal-consistent mechanism design offers a practical non-buffering alternative to synchronized delay equalization in heterogeneous telecom infrastructures.
Repetition-based draw rules in deterministic games like chess ensure termination but introduce strategic artifacts, allowing players to enforce draws independent of positional value. We propose an asymmetric modification: threefold repetition results in a loss for White if it is responsible for initiating it. This rule directly targets the persistent first-move advantage and removes low-effort draw strategies available to White. The new rule is expected to reduce draw rates, re-balance first-move advantage, and promote exploration in both human and artificial play. We outline a computational framework with existing and newly designed neural-network chess engines for the empirical validation of the proposal and analyze it from the perspectives of game theory and graph dynamics.
2604.03559A virtual power plant (VPP) is operated by an aggregator that acts as a market intermediary, aggregating consumers to participate in wholesale power markets. By setting incentive prices, the aggregator induces consumers to sell energy and profits by providing this aggregated energy to the market. This supply is enabled by consumers' flexibility to adjust electricity consumption in response to market conditions. However, heterogeneity in flexibility means that profit-maximizing VPP pricing can create inequalities in participation and benefit allocation across consumers. In this paper, we develop a fairness-aware pricing framework to analyze how different fairness notions reshape system performance, measured by consumer Nash welfare, total consumer utility, and social welfare. We consider three fairness criteria: energy fairness, which ensures equitable energy provision; price fairness, which ensures similar incentive prices; and utility fairness, which ensures comparable levels of consumer utility. We model the aggregator-consumer interaction as a Stackelberg game and derive consumers' optimal responses to incentive prices. Using a stylized model, we show that profit-only pricing systematically disadvantages less flexible consumers. We further show that energy fairness can either improve or worsen all performance measures, and gains across most measures arise only at moderate fairness levels. Surprisingly, price fairness never benefits less flexible consumers, even when it reduces price disparities. By contrast, utility fairness protects less flexible consumers without benefiting more flexible ones. We validate our findings using data from an experiment in Norway under a tiered pricing scheme. Our results provide regulators and VPP operators with a systematic map linking fairness definitions and enforcement levels to operational and welfare outcomes.
2604.03434We present a formal treatment of provenance trees, directed acyclic graphs of artifact registrations anchored immutably on a public blockchain, and introduce the operator trust problem: when a single privileged operator submits all on-chain registrations on behalf of users, the on-chain record alone cannot distinguish user-initiated registrations from unilateral operator actions. We resolve this through a dual-layer cryptographic commitment scheme in which two commitments derived from a single client-side secret key, binding the key to the tree root and to each unique registration identifier, make false attribution claims strictly dominated strategies. We prove correctness under standard cryptographic assumptions and establish honest behavior as the unique Nash equilibrium without relying on operator trust. We further introduce and analyze the tree poisoning problem: adversarial attacks on users' provenance trees via fraudulent root registration, malicious child attachment, and tree identity spoofing. We characterize the closure properties of each attack variant and prove that a complete provenance tree integrity model requires three distinct mechanisms: cryptographic priority, governance cascade, and contract enforcement, each necessary and none individually sufficient. The construction is deployed on Base (Ethereum L2) as AnchorRegistry, an immutable on-chain provenance registry. We provide gas complexity analysis demonstrating O(1) cost invariant to registry scale, and a trustless reconstruction algorithm recovering the complete registry from public event logs alone.
In this paper, we study how a budget-constrained bidder should learn to bid adaptively in repeated first-price auctions to maximize cumulative payoff. This problem arises from the recent industry-wide shift from second-price auctions to first-price auctions in display advertising, which renders truthful bidding suboptimal. We propose a simple dual-gradient-descent-based bidding policy that maintains a dual variable for the budget constraint as the bidder consumes the budget. We analyze two settings based on the bidder's knowledge of future private values: (i) an uninformative setting where all distributional knowledge (potentially non-stationary) is entirely unknown, and (ii) an informative setting where a prediction of budget allocation is available in advance. We characterize the performance loss (regret) relative to an optimal policy with complete information. For uninformative setting, we show that the regret is ~O(sqrt(T)) plus a Wasserstein-based variation term capturing non-stationarity, which is order-optimal. In the informative setting, the variation term can be eliminated using predictions, yielding a regret of ~O(sqrt(T)) plus the prediction error. Furthermore, we go beyond the global budget constraint by introducing a refined benchmark based on a per-period budget allocation plan, achieving exactly ~O(sqrt(T)) regret. We also establish robustness guarantees when the baseline policy deviates from the planned allocation, covering both ideal and adversarial deviations.
In this paper, we study a network formation game in which agents seek to maximize their influence by allocating constrained resources to choose connections with other agents. In particular, we use Katz centrality to model agents' influence in the network. Allocations are restricted to neighbors in a given unweighted network encoding topological constraints. The allocations by an agent correspond to the weights of its outgoing edges. Such allocation by all agents thereby induces a network. This models a strategic-form game in which agents' utilities are given by their Katz centralities. We characterize the Nash equilibrium networks of this game and analyze their properties. We propose a sequential best-response dynamics (BRD) to model the network formation process. We show that it converges to the set of Nash equilibria under very mild assumptions. For complete underlying topologies, we show that Katz centralities are proportional to agents' budgets at Nash equilibria. For general underlying topologies in which each agent has a self-loop, we show that hierarchical networks form at Nash equilibria. Finally, simulations illustrate our findings.
This paper investigates strategic interactions within a three party deception security game involving a defender, an insider, and external attackers. We propose a robust deception mechanism where the leader manipulates game parameters perceived by followers to enhance defense performance when followers operate under misperceived and uncertain observation. Specifically, we propose a unified three party leader follower game framework and introduce the concepts of Deception Stackelberg equilibria (DSE) and Hyper Nash equilibria (HNE), which generalize classical two-player Stackelberg and deception games. We develop necessary and sufficient conditions for the consistency between DSE and HNE, ensuring that the defender's utility remains invariant when the hierarchical structure degenerates into a simultaneous-move scenario. Moreover, we propose a scalable hypergradient-based algorithm with established convergence guarantees for seeking DSE, efficiently addressing the computational challenges posed by non-smooth and set-valued best-response mappings. Finally, we apply theoretical analysis to practical scenarios in secure wireless communication and defense against insider-assisted false data injection attacks.
We study a single-buyer pricing problem with unreliable side information, motivated by the increasing use of AI-assisted decision-making and LLM-based predictions. The seller observes a private sample that may be either accurate (coinciding with the buyer's valuation), or hallucinatory (an independent draw from the prior), without knowing which case has realized. The buyer does not observe the realized signal, yet knows whether it is accurate or hallucinatory. This creates a higher-order informational asymmetry: the seller is uncertain about the reliability of his own side information, while the buyer has private information about that reliability. Adopting a consistency-robustness framework, we characterize the exact Pareto frontier of tradeoffs between consistency (performance under an accurate signal) and robustness (performance under a hallucinatory signal). We show that keeping the unreliable signal private generates substantial value, yielding tradeoffs that strictly dominate any public-signal benchmark. We further show that perfect consistency does not preclude meaningful protection against hallucination: for every prior, there exists a mechanism achieving perfect consistency together with a nontrivial robustness guarantee of $\frac{1}{2}$. Moreover, if the prior has an infinite mean or a mean of at most its monopoly price, we provide a mechanism that is simultaneously 1-consistent and 1-robust. Our results illustrate a new mechanism design paradigm: rather than relying only on information directly possessed by the designer, mechanisms can be built to leverage the other side's knowledge about the reliability of the designer's information.
Citizens' assemblies are a form of democratic innovation in which a randomly selected panel of constituents deliberates on questions of public interest. We study a novel goal for the selection of panel members: maximizing the entropy of the distribution over possible panels. We design algorithms that sample from maximum-entropy distributions, potentially subject to constraints on the individual selection probabilities. We investigate the properties of these algorithms theoretically, including in terms of their resistance to manipulation and transparency. We benchmark our algorithms on a large set of real assembly lotteries in terms of their intersectional diversity and the probability of satisfying unseen representation constraints, and we obtain favorable results on both measures. We deploy one of our algorithms on a website for citizens' assembly practitioners.
We propose a novel extension of the Bradley-Terry model to multiplayer games and adapt a recent algorithm by Newman [1] to our model. We demonstrate the use of our proposed method on synthetic datasets and on a real dataset of games of cards.
Coordinating mixed fleets of $10^4$ to $10^5$ vehicles, passenger cars, freight trucks, and autonomous vehicles, under stringent delay constraints is a central scalability bottleneck in next-generation V2X networks. Heterogeneous mean field games (HMFG) offer a principled coordination framework, yet a fundamental design question lacks theoretical guidance: how many agent types $K$ should be used for a fleet of size $N$? The core challenge is a two-sided trade-off that existing theory does not resolve: increasing $K$ reduces type-discretization error but simultaneously starves each class of the samples needed for reliable mean-field approximation. We resolve this trade-off by deriving an explicit $\varepsilon$-Nash error decomposition driven by a Wasserstein-based heterogeneity measure, and prove that the unique error-minimizing type count satisfies $K^*(N)=Θ(N^{1/3})$ in the canonical one-dimensional queue setting. We further establish a heterogeneity-aware convergence condition for G-prox PDHG and extend the framework to temporal-graph LEO satellite backhaul dynamics with provable robustness guarantees. A perhaps surprising consequence is that even for $N=10^5$ vehicles, only about 28 type classes suffice, cube-root compression rather than per-vehicle modeling, so type-granularity selection is largely a set-once design decision. Experiments validate the scaling law, achieve $2.3\times$ faster PDHG convergence at $K=5$, and deliver up to $29.5\%$ lower delay and $60\%$ higher throughput compared with homogeneous baselines.
Chance-constrained correlated equilibrium enables coordination of noncooperative agents under cost uncertainty through probabilistic incentive-compatibility guarantees. However, computing such equilibria becomes intractable in large-scale systems due to the exponential growth of the joint action space. We develop an approximation method for computing chance-constrained correlated equilibria by showing that these equilibria admit a representation as convex combinations of a finite set of chance-constrained pure Nash equilibria, enabling tractable computation without solving the full correlated equilibrium program. Numerical experiments on large-scale multi-airline coordination scenarios demonstrate substantial reductions in computation time while achieving lower system delay costs compared to current operational practice. Under cost uncertainty, the proposed method consistently achieves lower deviation rate compared to the full formulation while achieving comparable coordination performance.
Several recent works investigate the effects of monoculture, the ever increasing phenomenon of (possibly) self-interested actors in a society relying on one common source of advice for decision making, with an archetypal driving example being the growing adoption and predictive power of machine learning models in matching markets, e.g. in hiring. Kleinberg and Raghavan (PNAS, 2021) introduced a model that captures the effects of monoculture in a one-sided matching market with advice, demonstrating that a higher accuracy common signal (such as an algorithmic vendor) might incentivize society as a whole to rationally adopt it, but as a collective it would be better off if each instead adopted less accurate, but private advice. We generalize their model and address the open question of their work in quantifying the social welfare loss. We find that monoculture and more generally decentralized optimization is close to optimal: we show a tight constant bound of 2 on the price of anarchy (and more general notions) for the induced game.
On high-throughput, low-fee blockchains, a qualitatively new form of maximal extractable value (MEV) has emerged: searchers submit large volumes of speculative transactions, whose profitability is resolved only at execution time. We refer to this as spam MEV. On major rollups, it can at times consume more than half of block gas, even though only a small fraction of probes ultimately results in a trade. Despite growing awareness of this phenomenon, there is no principled framework for understanding how blockchain design parameters shape its prevalence and impact. We develop such a framework, modeling spam transactions competing for on-chain opportunities under a competitive equilibrium that drives their profits to zero, and deriving equilibrium spam volumes as a function of block capacity, minimum gas price, and the transaction fee mechanism. Empirical evidence from Base and Arbitrum supports the model: spam grew sharply as block capacity was scaled up and fell when minimum gas prices were introduced. Our analysis yields three main insights. First, spam is always costly: when block capacity is scarce, it displaces users and drives up gas prices; as block capacity grows, it increasingly consumes execution resources, raising network externality, i.e., the cost of provisioning and processing blocks. We show that spam takes an increasing share of each additional unit of block capacity, so capping it before all users are included creates a favorable trade-off: forgoing a small amount of user welfare eliminates disproportionate spam and externality. Second, we extend the analysis to priority fee ordering and show that ordering transactions by gas price helps reduce spam, as spammers must pay more to reach early block positions. Third, as user demand grows and blockspace is scaled accordingly, spam's share of block capacity plateaus rather than growing indefinitely.
2604.00129A central challenge in mechanism design is to develop truthful trade mechanisms that maximize the expected gains-from-trade (GFT) in two-sided markets with strategic agents. As achieving the full GFT is generally impossible, much of the literature has focused on constant-factor approximations. Existing results, however, are limited to the highly structured settings of bilateral trade and double auctions, in which every buyer can trade with every seller. We consider the significantly more general setting of two-sided matching markets with arbitrary downward-closed constraints on the family of allowed matchings. For this setting, we present a simple randomized truthful mechanism that guarantees a constant-factor approximation to the optimal expected GFT. This result also resolves an open problem posed by Cai, Goldner, Ma, and Zhao (2021).
This paper introduces a performative scenario optimization framework for decision-dependent chance-constrained problems. Unlike classical stochastic optimization, we account for the feedback loop where decisions actively shape the underlying data-generating process. We define performative solutions as self-consistent equilibria and establish their existence using Kakutani's fixed-point theorem. To ensure computational tractability without requiring an explicit model of the environment, we propose a model-free, scenario-based approximation that alternates between data generation and optimization. Under mild regularity conditions, we prove that a stochastic fixed-point iteration, equipped with a logarithmic sample size schedule, converges almost surely to the unique performative solution. The effectiveness of the proposed framework is demonstrated through an emerging AI safety application: deploying performative guardrails against Large Language Model (LLM) jailbreaks. Numerical results confirm the co-evolution and convergence of the guardrail classifier and the induced adversarial prompt distribution to a stable equilibrium.
Purpose: Multiwinner voting rules typically require full knowledge of voter preferences, which becomes impractical in large-scale or attention-limited settings. This paper investigates how accurately a winning committee can be approximated when voter preferences are elicited using a limited budget of structured queries. Methods: We introduce a query-based framework for multiwinner elections in which voter preferences are elicited through refinement queries over subsets of candidates under a limited budget. We analyse several cost functions that model the cognitive effort needed to answer such queries, propose axiomatic properties for evaluating them, and experimentally evaluate simple query-based committee selection rules across multiple election models. Results: Experimental results show that strategies based on recursively splitting candidate sets provide the best trade-off between elicitation cost and committee accuracy. Across several statistical models, these strategies approximate the outcome of k-Borda elections significantly more efficiently than alternative query types. Conclusion: The results demonstrate that well-designed query strategies can substantially reduce the amount of preference information required while still producing high-quality committee outcomes, suggesting that query-based elicitation is a promising approach for scalable multiwinner decision-making.
Sustaining high inter-satellite link (ISL) throughput under intermittent solar harvesting is a fundamental challenge for LEO mega-constellations. Existing frameworks impose static power ceilings that ignore real-time battery state and comprehensive onboard power budgets, causing eclipse-period energy crises. Learning-based approaches capture battery dynamics but lack equilibrium guarantees and do not scale beyond small constellations. We propose the Hierarchical Battery-Aware Game (HBAG) algorithm, a unified game-theoretic framework for ISL power allocation that operates identically across finite and megaconstellation regimes. For finite constellations, HBAG converges to a unique variational equilibrium; as constellation size grows, the same distributed update rule converges to the mean field equilibrium without algorithm redesign. Comprehensive experiments on Starlink Shell A (172 satellites) show that HBAG achieves 100% energy sustainability rate (87.4 percentage points improvement over SATFLOW), eliminates eclipse-period battery depletion, maintains flow violation ratio below the 10% industry tolerance, and scales linearly to 5,000 satellites with less than 75 ms per-slot runtime.