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Multi-Sender Persuasion: A Computational Perspective

Safwan Hossain, Tonghan Wang, Tao Lin, Yiling Chen, David C. Parkes, Haifeng Xu

TL;DR

It is proved that finding an equilibrium in general is PPAD-Hard; in fact, even computing a sender's best response is NP-Hard; and a novel differentiable neural network is proposed to approximate this game's non-linear and discontinuous utilities.

Abstract

We consider the multi-sender persuasion problem: multiple players with informational advantage signal to convince a single self-interested actor to take certain actions. This problem generalizes the seminal Bayesian Persuasion framework and is ubiquitous in computational economics, multi-agent learning, and multi-objective machine learning. The core solution concept here is the Nash equilibrium of senders' signaling policies. Theoretically, we prove that finding an equilibrium in general is PPAD-Hard; in fact, even computing a sender's best response is NP-Hard. Given these intrinsic difficulties, we turn to finding local Nash equilibria. We propose a novel differentiable neural network to approximate this game's non-linear and discontinuous utilities. Complementing this with the extra-gradient algorithm, we discover local equilibria that Pareto dominates full-revelation equilibria and those found by existing neural networks. Broadly, our theoretical and empirical contributions are of interest to a large class of economic problems.

Multi-Sender Persuasion: A Computational Perspective

TL;DR

It is proved that finding an equilibrium in general is PPAD-Hard; in fact, even computing a sender's best response is NP-Hard; and a novel differentiable neural network is proposed to approximate this game's non-linear and discontinuous utilities.

Abstract

We consider the multi-sender persuasion problem: multiple players with informational advantage signal to convince a single self-interested actor to take certain actions. This problem generalizes the seminal Bayesian Persuasion framework and is ubiquitous in computational economics, multi-agent learning, and multi-objective machine learning. The core solution concept here is the Nash equilibrium of senders' signaling policies. Theoretically, we prove that finding an equilibrium in general is PPAD-Hard; in fact, even computing a sender's best response is NP-Hard. Given these intrinsic difficulties, we turn to finding local Nash equilibria. We propose a novel differentiable neural network to approximate this game's non-linear and discontinuous utilities. Complementing this with the extra-gradient algorithm, we discover local equilibria that Pareto dominates full-revelation equilibria and those found by existing neural networks. Broadly, our theoretical and empirical contributions are of interest to a large class of economic problems.
Paper Structure (25 sections, 10 theorems, 62 equations, 8 figures, 1 table)

This paper contains 25 sections, 10 theorems, 62 equations, 8 figures, 1 table.

Key Result

Proposition 1

The sender's utility function $\overline{u}_i(\bm \pi)$ is discontinuous and piecewise non-linear in $(\pi_1, \dots, \pi_n)$. Fixing $\bm \pi_{-i}$, $\overline{u}_i(\pi_i, \bm \pi_{-i})$ is discontinuous and piecewise linear in $\pi_i$.

Figures (8)

  • Figure 1: Discontinuous utility functions in a multi-sender persuasion game with 2 senders, 2 signals, 2 actions, and 2 states. In each subplot: the x-axis represents the probability of $\mathtt{Sender 1}$ transmitting $\mathtt{Signal 1}$ at $\mathtt{State 1}$, the y-axis shows the probability of $\mathtt{Sender 2}$ emitting $\mathtt{Signal 1}$ at $\mathtt{State 1}$, and the z-axis quantifies $\mathtt{Sender 2}$'s utility. Signaling strategies of both senders at $\mathtt{State 2}$ are set to $(0.5, 0.5)$ in the top row and to $(0.2, 0.8)$ and $(0.8, 0.2)$ in the bottom row. In each column, we show the groundtruth ex-ante utility, and the approximation results achieved by our method, ReLU, and DeLU wang2023deep networks, respectively.
  • Figure 2: Our method finds better $\epsilon$-local Nash equilibrium than the baseline DeLU wang2023deep and ReLU networks.
  • Figure 3: The $\epsilon$-local Nash equilibria found by our method typically Pareto dominate the full revelation equilibria and improve the random initial policies of extra-gradient by a large margin.
  • Figure 4: Our network achieves lower approximation errors compared to baseline network structures.
  • Figure 5: Our method achieves higher social welfare compared against baselines and full-revelation solutions in games with 4 senders.
  • ...and 3 more figures

Theorems & Definitions (33)

  • Definition 1
  • Definition 2
  • Proposition 1: Discontinuous Utility
  • Proposition 1: Best Response Program
  • Theorem 2: NP-hardness of Best Response
  • Theorem 3: Full-Revelation Equilibrium
  • Theorem 4: PPAD-Hardness
  • Definition 3: $\epsilon$-Local Nash Equilibrium
  • Definition 4: Activation Pattern
  • proof
  • ...and 23 more