Publication

Robust Market Equilibria with Uncertain Preferences

Conference on Artificial Intelligence (AAAI)


Abstract

The problem of allocating scarce items to individuals is an important practical question in market design. An increasingly popular set of mechanisms for this task uses the concept of market equilibrium: individuals report their preferences, have a budget of real or fake currency, and a set of prices for items and allocations is computed that sets demand equal to supply. An important real world issue with such mechanisms is that individual valuations are often only imperfectly known. In this paper, we show how concepts from classical market equilibrium can be extended to reflect such uncertainty. We show that in linear, divisible Fisher markets a robust market equilibrium (RME) always exists; this also holds in settings where buyers may retain unspent money. We provide theoretical analysis of the allocative properties of RME in terms of envy and regret. Though RME are hard to compute for general uncertainty sets, we consider some natural and tractable uncertainty sets which lead to well behaved formulations of the problem that can be solved via modern convex programming methods. Finally, we show that very mild uncertainty about valuations can cause RME allocations to outperform those which take estimates as having no underlying uncertainty.

Related Publications

All Publications

An Exploration of Embodied Visual Exploration

Santhosh K. Ramakrishnan, Dinesh Jayaraman, Kristen Grauman

arXiv - August 21, 2020

Audio-Visual Waypoints for Navigation

Changan Chen, Sagnik Majumder, Ziad Al-Halah, Ruohan Gao, Santhosh K. Ramakrishnan, Kristen Grauman

arXiv - August 21, 2020

Encoding Physical Constraints in Differentiable Newton-Euler Algorithm

Giovanni Sutanto, Austin S. Wang, Yixin Lin, Mustafa Mukadam, Gaurav S. Sukhatme, Akshara Rai, Franziska Meier

L4DC - June 10, 2020

To help personalize content, tailor and measure ads, and provide a safer experience, we use cookies. By clicking or navigating the site, you agree to allow our collection of information on and off Facebook through cookies. Learn more, including about available controls: Cookies Policy