The optimal allocation of resources in complex environments—like allocation of dynamic wireless spectrum, cloud computing services, and Internet advertising—is computationally challenging even given the true preferences of the participants. In the theory and practice of optimization in complex environments, a wide variety of special and general purpose algorithms have been developed; these algo...

This paper analyzes optimal incentive compatible debt contracts when lenders are risk averse. The decisive factor in this regard is that risk aversion requires to consider further sources of risk the lenders are exposed to. The main results derived in a setting of asymmetric information – the payment obligation of the optimal incentive compatible contract increases due to risk aversion of lende...

A major challenge in combinatorial auctions is to construct payment rules to make a winner-determination algorithm maximally incentive compatible. A general purpose solution is available only when winner case for reasons of computational complexity or other economic considerations. We propose to use structural SVMs for this pricing problem. The decision boundaries for each target class (with a ...

We consider the problem of all-to-one selfish routing in the absence of a payment scheme in wireless sensor networks, where a natural model for cost is the power required to forward, referring to the resulting game as a Locally Minimum Cost Forwarding (LMCF). Our objective is to characterize equilibria and their global costs in terms of stretch and diameter, in particular finding incentive comp...

We consider dual-role exchange markets, where traders can offer to both buy and sell the same commodity in the exchange but, if they transact, they can only be either a buyer or a seller, which is determined by the market mechanism. To design desirable mechanisms for such exchanges, we show that existing solutions may not be incentive compatible, and more importantly, cause the market maker to ...

Within the last decade kidney exchange has become a mainstream paradigm to increase the number of kidney transplants. However, compatible pairs do not participate, and the full benefit from exchange can be realized only if they do. In this paper, we propose a new incentive scheme that relies on incentivizing participation of compatible pairs in exchange via insurance for the patient for a futur...

In the private values single object auction model, we construct a satisfactory mechanism a symmetric, dominant strategy incentive compatible, and budget-balanced mechanism. Our mechanism allocates the object to the highest valued agent with more than 99% probability provided there are at least 14 agents. It is also ex-post individually rational. We show that our mechanism is optimal in a restri...

Existence of ex post incentive compatible mechanisms in models with multi-dimensional signals and interdependent values is possible when there are no consumption externalities. An ex post incentive compatible mechanism is constructed in a model where a single indivisible object is allocated among several buyers with multi-dimensional information and interdependent values. It is the combination ...

We study auctions with additive valuations where agents have a limit on the number of goods they may receive. We refer to such valuations as capacitated and seek mechanisms that maximize social welfare and are simultaneously incentive compatible, envy-free, individually rational, and have no positive transfers. If capacities are infinite, then sequentially repeating the 2nd price Vickrey auctio...

This paper considers the coordinated radio resource allocation problem for users which are simultaneously covered by multiple overlapping heterogeneous wireless networks. As the resource allocation decision depends on the channel measurement and feedback from users, inefficiency and instability arise if a selfish user can manipulate its measured channel state to increase its gain from network. ...