arXiv subjects

Diodato Ferraioli

Publications and source records attributed to Diodato Ferraioli.

At least 19 recordsLinked to original sources

arXiv2025

Algorithmic Monetary Policies for Blockchain Participation Games

A central challenge in blockchain tokenomics is aligning short-term performance incentives with long-term decentralization goals. We propose a framework for algorithmic monetary policies that navigates this tradeoff in repeated participation games. Agents, characterized by type (capability) and stake, choose to participate or abstain at each round; the policy (probabilistically) selects high-type agents for task execution (maximizing throughput) while distributing rewards to sustain decentralization. We analyze equilibria under two agent behaviors: myopic (short-term utility maximization) and foresighted (multi-round planning). For myopic agents, performance-centric policies risk centralization, but foresight enables stable decentralization with some volatility to the token value. We further discuss virtual stake--a hybrid of type and stake--as an alternative approach. We show that the initial virtual stake distribution critically impacts long-term outcomes, suggesting that policies must indirectly manage decentralization.

cs.GT↗

arXiv2025

Non-Obvious Manipulability in Additively Separable and Fractional Hedonic Games

In this work, we consider the design of Non-Obviously Manipulable (NOM) mechanisms, mechanisms that bounded rational agents may fail to recognize as manipulable, for two relevant classes of succinctly representable Hedonic Games: Additively Separable and Fractional Hedonic Games. In these classes, agents have cardinal scores towards other agents, and their preferences over coalitions are determined by aggregating such scores. This aggregation results in a utility function for each agent, which enables the evaluation of outcomes via the utilitarian social welfare. We first prove that, when scores can be arbitrary, every optimal mechanism is NOM; moreover, when scores are limited in a continuous interval, there exists an optimal mechanism that is NOM. Given the hardness of computing optimal outcomes in these settings, we turn our attention to efficient and NOM mechanisms. To this aim, we first prove a characterization of NOM mechanisms that simplifies the class of mechanisms of interest. Then, we design a NOM mechanism returning approximations that asymptotically match the best-known approximation achievable in polynomial time. Finally, we focus on discrete scores, where the compatibility of NOM with optimality depends on the specific values. Therefore, we initiate a systematic analysis to identify which discrete values support this compatibility and which do not.

cs.GT↗

arXiv2024

Stochastic Multi-round Submodular Optimization with Budget

In this work, we study the Stochastic Budgeted Multi-round Submodular Maximization (SBMSm) problem, where we aim to adaptively maximize the sum, over multiple rounds, of a monotone and submodular objective function defined on subsets of items. The objective function also depends on the realization of stochastic events, and the total number of items we can select over all rounds is bounded by a limited budget. This problem extends, and generalizes to multiple round settings, well-studied problems such as (adaptive) influence maximization and stochastic probing. We show that, if the number of items and stochastic events is somehow bounded, there is a polynomial time dynamic programming algorithm for SBMSm. Then, we provide a simple greedy $1/2(1-1/e-ε)\approx 0.316$-approximation algorithm for SBMSm, that first non-adaptively allocates the budget to be spent at each round, and then greedily and adaptively maximizes the objective function by using the budget assigned at each round. Finally, we introduce the {\em budget-adaptivity gap}, by which we measure how much an adaptive policy for SBMSm is better than an optimal partially adaptive one that, as in our greedy algorithm, determines the budget allocation in advance. We show that the budget-adaptivity gap lies between $e/(e-1)\approx 1.582$ and $2$.

cs.DS↗

arXiv2024

An Algorithmic Theory of Simplicity in Mechanism Design

A growing body of work in economics and computation focuses on the trade-off between implementability and simplicity in mechanism design. The goal is to develop a theory that not only allows to design an incentive structure easy to grasp for imperfectly rational agents, but also understand the ensuing limitations on the class of mechanisms that enforce it. In this context, the concept of OSP mechanisms has assumed a prominent role since they provably account for the absence of contingent reasoning skills, a specific cognitive limitation. For single-dimensional agents, it is known that OSP mechanisms need to use certain greedy algorithms. In this work, we introduce a notion that interpolates between OSP and SOSP, a more stringent notion where agents only plan a subset of their own future moves. We provide an algorithmic characterization of this novel class of mechanisms for single-dimensional domains and binary allocation problems, that precisely measures the interplay between simplicity and implementability. We build on this to show how mechanisms based on reverse greedy algorithms (a.k.a., deferred acceptance auctions) are algorithmically more robust to imperfectly rationality than those adopting greedy algorithms.

cs.GT↗

arXiv2023

Election Manipulation in Social Networks with Single-Peaked Agents

Several elections run in the last years have been characterized by attempts to manipulate the result of the election through the diffusion of fake or malicious news over social networks. This problem has been recognized as a critical issue for the robustness of our democracy. Analyzing and understanding how such manipulations may occur is crucial to the design of effective countermeasures to these practices. Many studies have observed that, in general, to design an optimal manipulation is usually a computationally hard task. Nevertheless, literature on bribery in voting and election manipulation has frequently observed that most hardness results melt down when one focuses on the setting of (nearly) single-peaked agents, i.e., when each voter has a preferred candidate (usually, the one closer to her own belief) and preferences of remaining candidates are inversely proportional to the distance between the candidate position and the voter's belief. Unfortunately, no such analysis has been done for election manipulations run in social networks. In this work, we try to close this gap: specifically, we consider a setting for election manipulation that naturally raises (nearly) single-peaked preferences, and we evaluate the complexity of election manipulation problem in this setting: while most of the hardness and approximation results still hold, we will show that single-peaked preferences allow to design simple, efficient and effective heuristics for election manipulation.

cs.GT↗

arXiv2023

On the Connection between Greedy Algorithms and Imperfect Rationality

The design of algorithms or protocols that are able to align the goals of the planner with the selfish interests of the agents involved in these protocols is of paramount importance in almost every decentralized setting (such as, computer networks, markets, etc.) as shown by the rich literature in Mechanism Design. Recently, huge interest has been devoted to the design of mechanisms for imperfectly rational agents, i.e., mechanisms for which agents are able to easily grasp that there is no action different from following the protocol that would satisfy their interests better. This work has culminated in the definition of Obviously Strategyproof (OSP) Mechanisms, that have been shown to capture the incentives of agents without contingent reasoning skills. Without an understanding of the algorithmic nature of OSP mechanisms, it is hard to assess how well these mechanisms can satisfy the goals of the planner. For the case of binary allocation problems and agents whose private type is a single number, recent work has shown that a generalization of greedy completely characterizes OSP. In this work, we strengthen the connection between greedy and OSP by providing a characterization of OSP mechanisms for all optimization problems involving these single-parameter agents. Specifically, we prove that OSP mechanisms must essentially work as follows: they either greedily look for agents with ``better'' types and allocate them larger outcomes; or reverse greedily look for agents with ``worse'' types and allocate them smaller outcomes; or, finally, split the domain of agents in ``good'' and ``bad'' types, and subsequently proceed in a reverse greedy fashion for the former and greedily for the latter. We further demonstrate how to use this characterization to give bounds on the approximation guarantee of OSP mechanisms for the well known scheduling related machines problem.

cs.GT↗

arXiv2022

On the Impact of Social Media Recommendations on Opinion Consensus

We consider a discrete opinion formation problem in a setting where agents are influenced by both information diffused by their social relations and from recommendations received directly from the social media manager. We study how the "strength" of the influence of the social media and the homophily ratio affect the probability of the agents of reaching a consensus and how these factors can determine the type of consensus reached. In a simple 2-symmetric block model we prove that agents converge either to a consensus or to a persistent disagreement. In particular, we show that when the homophily ratio is large, the social media has a very low capacity of determining the outcome of the opinion dynamics. On the other hand, when the homophily ratio is low, the social media influence can have an important role on the dynamics, either by making harder to reach a consensus or inducing it on extreme opinions. Finally, in order to extend our analysis to more general and realistic settings we give some experimental evidences that our results still hold on general networks.

cs.SI↗

arXiv2022

Efficiency of Ad Auctions with Price Displaying

Most of the economic reports forecast that almost half of the worldwide market value unlocked by AI over the next decade (up to 6 trillion USD per year) will be in marketing&sales. In particular, AI will enable the optimization of more and more intricate economic settings, in which multiple different activities need to be jointly automated. This is the case of, e.g., Google Hotel Ads and Tripadvisor, where auctions are used to display ads of similar products or services together with their prices. As in classical ad auctions, the ads are ranked depending on the advertisers' bids, whereas, differently from classical settings, ads are displayed together with their prices, so as to provide a direct comparison among them. This dramatically affects users' behavior, as well as the properties of ad auctions. We show that, in such settings, social welfare maximization can be achieved by means of a direct-revelation mechanism that jointly optimizes, in polynomial time, the ads allocation and the advertisers' prices to be displayed with them. However, in practice it is unlikely that advertisers allow the mechanism to choose prices on their behalf. Indeed, in commonly-adopted mechanisms, ads allocation and price optimization are decoupled, so that the advertisers optimize prices and bids, while the mechanism does so for the allocation, once prices and bids are given. We investigate how this decoupling affects the efficiency of mechanisms. In particular, we study the Price of Anarchy (PoA) and the Price of Stability (PoS) of indirect-revelation mechanisms with both VCG and GSP payments, showing that the PoS for the revenue may be unbounded even with two slots, and the PoA for the social welfare may be as large as the number of slots. Nevertheless, we show that, under some assumptions, simple modifications to the indirect-revelation mechanism with VCG payments achieve a PoS of 1 for the revenue.

cs.GT↗

arXiv2021

Belief-Invariant and Quantum Equilibria in Games of Incomplete Information

Drawing on ideas from game theory and quantum physics, we investigate nonlocal correlations from the point of view of equilibria in games of incomplete information. These equilibria can be classified in decreasing power as communication equilibria, belief-invariant equilibria, and correlated equilibria, all of which contain the familiar Nash equilibria. The notion of belief-invariant equilibrium appeared in game theory in the 90s. However, the class of non-signalling correlations associated to belief-invariance arose naturally already in the 80s in the foundations of quantum mechanics. In the present work, we explain and unify these two origins of the idea and study the above classes of equilibria, together with quantum correlated equilibria, using tools from quantum information but the language of (algorithmic) game theory. We present a general framework of belief-invariant communication equilibria, which contains correlated equilibria and quantum correlated equilibria as special cases. Our framework also contains the theory of Bell inequalities and their violations due to non-locality, which is a question of intense interest in the foundations of quantum mechanics, and it was indeed the original motivation for the aforementioned studies. Moreover, in our framework we can also model quantum games where players have conflicting interests, a recent developing topic in physics. We then use our framework to show new results related to the social welfare of equilibria. Namely, we exhibit a game where belief-invariance is socially better than any correlated equilibrium, and a game where all non-belief-invariant communication equilibria have a suboptimal social welfare. We also show that optimal social welfare can sometimes be achieved by quantum mechanical correlations, which do not need an informed mediator to be implemented, and go beyond the classical shared randomness approach.

cs.GT↗

arXiv2020

Two-way Greedy: Algorithms for Imperfect Rationality

The realization that selfish interests need to be accounted for in the design of algorithms has produced many contributions in computer science under the umbrella of algorithmic mechanism design. Novel algorithmic properties and paradigms have been identified and studied. Our work stems from the observation that selfishness is different from rationality; agents will attempt to strategize whenever they perceive it to be convenient according to their imperfect rationality. Recent work has focused on a particular notion of imperfect rationality, namely absence of contingent reasoning skills, and defined obvious strategyproofness (OSP) as a way to deal with the selfishness of these agents. Essentially, this definition states that to care for the incentives of these agents, we need not only pay attention about the relationship between input and output, but also about the way the algorithm is run. However, it is not clear what algorithmic approaches must be used for OSP. In this paper, we show that, for binary allocation problems, OSP is fully captured by a combination of two well-known algorithmic techniques: forward and reverse greedy. We call two-way greedy this algorithmic design paradigm. Our main technical contribution establishes the connection between OSP and two-way greedy. We build upon the recently introduced cycle monotonicity technique for OSP. By means of novel structural properties of cycles and queries of OSP mechanisms, we fully characterize these mechanisms in terms of extremal implementations. These are protocols that ask each agent to consistently separate one extreme of their domain at the current history from the rest. Through the connection with the greedy paradigm, we are able to import a host of approximation bounds to OSP and strengthen the strategic properties of this family of algorithms. Finally, we begin exploring the power of two-way greedy for set systems.

cs.GT↗

arXiv2020

Election Manipulation on Social Networks: Seeding, Edge Removal, Edge Addition

We focus on the election manipulation problem through social influence, where a manipulator exploits a social network to make her most preferred candidate win an election. Influence is due to information in favor of and/or against one or multiple candidates, sent by seeds and spreading through the network according to the independent cascade model. We provide a comprehensive study of the election control problem, investigating two forms of manipulations: seeding to buy influencers given a social network, and removing or adding edges in the social network given the seeds and the information sent. In particular, we study a wide range of cases distinguishing for the number of candidates or the kind of information spread over the network. Our main result is positive for democracy, and it shows that the election manipulation problem is not affordable in the worst-case except for trivial classes of instances, even when one accepts to approximate the margin of victory. In the case of seeding, we also show that the manipulation is hard even if the graph is a line and that a large class of algorithms, including most of the approaches recently adopted for social-influence problems, fail to compute a bounded approximation even on elementary networks, as undirected graphs with every node having a degree at most two or directed trees. In the case of edge removal or addition, our hardness results also apply to the basic case of social influence maximization/minimization. In contrast, the hardness of election manipulation holds even when the manipulator has an unlimited budget, being allowed to remove or add an arbitrary number of edges.

cs.AI↗

arXiv2019

Election Manipulation on Social Networks with Messages on Multiple Candidates

We study the problem of election control through social influence when the manipulator is allowed to use the locations that she acquired on the network for sending \emph{both} positive and negative messages on \emph{multiple} candidates, widely extending the previous results available in the literature that study the influence of a single message on a single candidate. In particular, we provide a tight characterization of the settings in which the maximum increase in the margin of victory can be efficiently approximated and of those in which any approximation turns out to be impossible. We also show that, in simple networks, a large class of algorithms, mainly including all approaches recently adopted for social-influence problems, fail to compute a bounded approximation even on very simple networks, as undirected graphs with every node having a degree at most two or directed trees. Finally, we investigate various extensions and generalizations of the model.

cs.GT↗

arXiv2018

On the approximation guarantee of obviously strategyproof mechanisms

Catering to the incentives of people with limited rationality is a challenging research direction that requires novel paradigms to design mechanisms and approximation algorithms. Obviously strategyproof (OSP) mechanisms have recently emerged as the concept of interest to this research agenda. However, the majority of the literature in the area has either highlighted the shortcomings of OSP or focused on the "right" definition rather than on the construction of these mechanisms. We here give the first set of tight results on the approximation guarantee of OSP mechanisms for scheduling related machines and a characterization of optimal OSP mechanisms for set system problems. By extending the well-known cycle monotonicity technique, we are able to concentrate on the algorithmic component of OSP mechanisms and provide some novel paradigms for their design.

cs.GT↗

arXiv2018

Probabilistic Verification for Obviously Strategyproof Mechanisms

Obviously strategyproof (OSP) mechanisms maintain the incentive compatibility of agents that are not fully rational. They have been object of a number of studies since their recent definition. A research agenda, initiated in [Ferraioli&Ventre, AAAI 2017], is to find a small (possibly, the smallest) set of conditions allowing to implement an OSP mechanism. To this aim, we define a model of probabilistic verification wherein agents are caught misbehaving with a certain probability, and show how OSP mechanisms can implement every social choice function at the cost of either imposing very large fines for lies or verifying a linear number of agents.

cs.GT↗

arXiv2017

Metastability of Logit Dynamics for Coordination Games

Logit Dynamics [Blume, Games and Economic Behavior, 1993] are randomized best response dynamics for strategic games: at every time step a player is selected uniformly at random and she chooses a new strategy according to a probability distribution biased toward strategies promising higher payoffs. This process defines an ergodic Markov chain, over the set of strategy profiles of the game, whose unique stationary distribution is the long-term equilibrium concept for the game. However, when the mixing time of the chain is large (e.g., exponential in the number of players), the stationary distribution loses its appeal as equilibrium concept, and the transient phase of the Markov chain becomes important. It can happen that the chain is "metastable", i.e., on a time-scale shorter than the mixing time, it stays close to some probability distribution over the state space, while in a time-scale multiple of the mixing time it jumps from one distribution to another. In this paper we give a quantitative definition of "metastable probability distributions" for a Markov chain and we study the metastability of the logit dynamics for some classes of coordination games. We first consider a pure $n$-player coordination game that highlights the distinctive features of our metastability notion based on distributions. Then, we study coordination games on the clique without a risk-dominant strategy (which are equivalent to the well-known Glauber dynamics for the Curie-Weiss model) and coordination games on a ring (both with and without risk-dominant strategy).

cs.GT↗

arXiv2017

Obvious Strategyproofness Needs Monitoring for Good Approximations

Obvious strategyproofness (OSP) is an appealing concept as it allows to maintain incentive compatibility even in the presence of agents that are not fully rational, e.g., those who struggle with contingent reasoning [Li, 2015]. However, it has been shown to impose some limitations, e.g., no OSP mechanism can return a stable matching [Ashlagi and Gonczarowski, 2015]. We here deepen the study of the limitations of OSP mechanisms by looking at their approximation guarantees for basic optimization problems paradigmatic of the area, i.e., machine scheduling and facility location. We prove a number of bounds on the approximation guarantee of OSP mechanisms, which show that OSP can come at a significant cost. However, rather surprisingly, we prove that OSP mechanisms can return optimal solutions when they use monitoring -- a novel mechanism design paradigm that introduces a mild level of scrutiny on agents' declarations [Kovacs et al., 2015].

cs.GT↗

arXiv2016

Discrete Preference Games in Heterogeneous Social Networks: Subverted Majorities and the Swing Player

We study discrete preference games in heterogeneous social networks. These games model the interplay between a player's private belief and his/her publicly stated opinion (which could be different from the player's belief) as a strategic game in which the players' strategies are the opinions and the cost of an opinion in a state is a convex combination through a parameter $α\in[0,1]$ of two factors: the disagreement between the player's opinion and his/her internal belief and the number of neighbors whose opinions differ from the one of the player. The parameter $α$ models how stubborn a player is: players with large $α$ change their opinion only if many neighbors disagree with his/her belief. We consider social networks that are heterogeneous in the sense that the parameter $α$ can vary from player to player. We ask if it is possible that the belief shared by the majority of the players does not coincide with the opinion that is publicly announced by the majority of the players in an equilibrium state. Our main result is a characterization of the social networks that admit an initial belief assignment for which there exists a sequence of best response moves that reach an equilibrium in which the initial majority is subverted. Our characterization is effective in the sense that can be tested efficiently and the initial belief assignment that can be subverted can be computed in time polynomial in the number of players. Our result is actually stronger as we show that in each initial belief assignment that can be subverted, subversion is actually obtained in a very strong way: it only takes one move of a single player, the swing player, to lead the social network to a point of no return in which any rational move from any player leads to a subverted majority.

cs.GT↗

arXiv2015

Minority Becomes Majority in Social Networks

It is often observed that agents tend to imitate the behavior of their neighbors in a social network. This imitating behavior might lead to the strategic decision of adopting a public behavior that differs from what the agent believes is the right one and this can subvert the behavior of the population as a whole. In this paper, we consider the case in which agents express preferences over two alternatives and model social pressure with the majority dynamics: at each step an agent is selected and its preference is replaced by the majority of the preferences of her neighbors. In case of a tie, the agent does not change her current preference. A profile of the agents' preferences is stable if the preference of each agent coincides with the preference of at least half of the neighbors (thus, the system is in equilibrium). We ask whether there are network topologies that are robust to social pressure. That is, we ask if there are graphs in which the majority of preferences in an initial profile always coincides with the majority of the preference in all stable profiles reachable from that profile. We completely characterize the graphs with this robustness property by showing that this is possible only if the graph has no edge or is a clique or very close to a clique. In other words, except for this handful of graphs, every graph admits at least one initial profile of preferences in which the majority dynamics can subvert the initial majority. We also show that deciding whether a graph admits a minority that becomes majority is NP-hard when the minority size is at most 1/4-th of the social network size.

cs.GT↗