Title: Preference%20Elicitation%20in%20Combinatorial%20Auctions
1Preference Elicitation in Combinatorial Auctions
- Tuomas Sandholm
- Carnegie Mellon University
- Computer Science Department
- (papers on this topic available via
www.cs.cmu.edu/sandholm)
2Outline
- Combinatorial auctions for multi-item auctions
- The revelation problem
- Previous approaches
- Our approach Elicitor agent
- Topological observations that motivate
elicitation - Different elicitation queries
- Policy dependent elicitor algorithms
- General policy independent elicitor framework
(with data structures assimilation algorithms)
specific elicitor algorithms - Making the elicitor incentive compatible
3Combinatorial auction
- Can bid on combinations of items Rassenti,Smith
Bulfin 82... - Bidders perspective
- Allows bidder to express what she really wants
- Avoids exposure problems
- No need for lookahead / counterspeculationing of
items - Auctioneers perspective
- Automated optimal bundling
- Binary winner determination problem
- Label bids as winning or losing so as to maximize
sum of bid prices - Each item can be allocated to at most one bid
- NP-complete Rothkopf et al 98 using Karp 72
- Inapproximable Sandholm IJCAI-99, AIJ-02 using
Hastad 99
4Another complex problem in combinatorial
auctions Revelation problem
- In direct-revelation mechanisms (e.g. VCG),
bidders bid on all 2items combinations - Need to compute the valuation for exponentially
many combination - Each valuation computation can be NP-complete
- For example if a carrier company bids on trucking
tasks TRACONET Sandholm AAAI-93 - Need to communicate the bids
- Need to reveal the bids
- Loss of privacy strategic info
5Revelation problem
- Agents need to decide what to bid on
- Waste effort on counter-speculation
- Waste effort making losing bids
- Fail to make bids that would have won
- Reduces economic efficiency revenue
6What info is needed from an agent depends on what
others have revealed
Elicitor
Clearing algorithm
Elicitor decides what to ask next based on
answers it has received so far
Conen S. IJCAI-01 workshop on Econ. Agents,
Models Mechanisms, ACMEC-01
7Elicitor Conen Sandholm 2001
- Have auctioneer incrementally elicit information
from bidders - based on the info received from bidders so far
8Elicitation
- Goal minimize elicitation
- Regardless of computational / storage cost
- (Future work explore tradeoffs across these)
- Approach
- At each phase
- Elicitor decides what to ask (and from which
bidder) - Elicitor asks that and propagates the answer in
its data structures - Elicitor checks whether the auction can already
be cleared optimally given the information in hand
9Setting
- Combinatorial auction m items for sale
- Private values auction, no allocative
externalities - Each bidder i has value function, vi 2m ? R
- Unique valuations (to ease presentation)
10Terminology
- (X1,...,Xbidders) is a collection
- Bundle Xi is earmarked for agent i
- An allocation is a feasible collection (i.e.,
collection where Xis dont overlap in items) - Objectives (1) Find Pareto efficient
allocation(s) (2) Find social welfare
maximizing allocation(s)
11Outline
- Query policy dependent ( rank lattice based)
elicitor algorithms - Policy independent elicitor algorithms
- Note Private values model
12Rank lattice
Bundle Ø A B AB Rank for Agent 1
4 2 3 1 Rank for Agent 2 4 3
2 1
1,1
1,2
2,1
3,1
2,2
1,3
2,3
3,2
1,4
4,1
2,4
3,3
4,2
3,4
4,3
4,4
Infeasible
Feasible
Dominated
13A search algorithm for the rank lattice
- Algorithm PAR PAReto optimal
- OPEN ? (1,...,1)
- while OPEN ? do
- Remove(c,OPEN) SUC ? suc(c)
- if Feasible(c) then
- PAR ? PAR ? c Remove(SUC,OPEN)
- else foreach node ? SUC do
- if node ? OPEN and Undominated(node,PAR)
- then Append(node,OPEN)
- Thrm. Finds all feasible Pareto-undominated
allocations (if bidders utility functions are
injective) - Welfare maximizing solution(s) can be selected as
a post-processor by evaluating those allocations
- Call this hybrid algorithm MPAR (for maximizing
PAR)
14Value-augmented rank lattice
Bundle Ø A B AB Value for Agent 1 0
4 3 8 Value for Agent 2 0 1 6 9
17
1,1
14
13
1,2
2,1
10
12
9
3,1
2,2
1,3
8
9
2,3
3,2
1,4
4,1
2,4
3,3
4,2
3,4
4,3
4,4
15Search algorithm family for the value-augmented
rank lattice
- Algorithm EBF Efficient Best First
- OPEN ? (1,...,1)
- loop
- if OPEN 1 then c ? combination in OPEN
- else
- M ? k ? OPEN v(k) maxnode ? OPEN v(node)
- if M ? 1 ? ?node ? M with Feasible(node) then
return node - else choose c ? M such that c is not dominated
by any node ? M - OPEN ? OPEN \ c
- if Feasible(c) then return c
- else foreach node ? suc(c) do
- if node ? OPEN then OPEN ? OPEN ? node
- From now on, assume quasilinear utility functions
- Thrm. Any EBF algorithm finds welfare maximizing
allocations - Thrm. VCG payments can be determined from the
information already elicited
16Rank lattice based partially-revealing VCG
- Use EBF to explore rank lattice top-down,
best-first - Elicitors queries (start at rank 1)
- tell me the bundle at the current rank (bundle
query), - tell me the value of the bundle at the current
rank (value query), increment rank - Natural sequence from good to bad bundles
- Elicit just the information necessary to find the
best undominated feasible allocation - Thrm. VCG payments can be determined from the
information already obtained
17Best worst case elicitation effort
- Best case rank vector (1,...,1) is feasible
- One bundle query to each agent, no value queries
- (VCG payments 0)
- Thrm. Any EBF algorithm requires at worst
(2items bidders biddersitems)/2 1 value
queries - Proof idea. Upper part of the lattice is
infeasible and not less in value than the
solution - Not surprising because worst-case communication
complexity of the problem is exponential Nisan
01
18EBF minimizes feasibility checks
- Def An algorithm is admissible if it always
finds a welfare maximizing allocation - Def An algorithm is admissibly equipped if it
only has - value queries, and
- a feasibility function on rank vectors, and
- a successor function on rank vectors
- Thrm There is no admissible, admissibly equipped
algorithm that requires fewer feasibility checks
(for every problem instance) than any EBF
algorithm
19Partial-revelation mechanisms Theoretical results
- The EBF-based mechaAn extended EBF algorithm,
RANK, determines an efficient allocation and VCG
payments with no additional queries - A RANK mechanism is incentive-compatible and
economically efficient - Thrm. Let B be the EBF that is used in a specific
RANK mechanism. Then there does not exist any
other mechanism based on an admissible,
admissibly equipped, deterministic algorithm that
requires fewer checks of the feasibility of nodes
for all instances of the allocation problem
20MPAR minimizes value queries
- Thrm. No admissible, admissibly equipped
algorithm (that calls the valuation function for
bundles in feasible rank vectors only) will
require fewer value queries than MPAR
21MPAR minimizes value queries
- Thrm. No admissible, admissibly equipped
algorithm (that calls the valuation function for
bundles in feasible rank vectors only) will
require fewer value queries than MPAR - MPAR requires at most biddersitems value queries
22Differential-revelation
- Extension of EBF
- Information elicited differences between
valuations - Hides sensitive value information
- Motivation max ? vi(Xi) ? min ? vi(r-1(1))
vi(Xi) - Maximizing sum of value ? Minimizing difference
between value of best ranked bundle and bundle in
the allocation - Thrm. Differences suffice for determining welfare
maximizing allocations VCG payments - 2 low-revelation incremental ex post incentive
compatible mechanisms ...
23Differential elicitation ...
- Questions (start at rank 1)
- tell me the bundle at the current rank
- tell me the difference in value of that bundle
and the best bundle - increment rank
- Natural sequence from good to bad bundles
24Differential elicitation ...
- Variation Bitwise decrement mechanism
- Is the difference in value between the best
bundle and the bundle at the current rank greater
than d? - if yes increment d, requires min. Increment
- allows establishing a bit stream (yes/no
answers)
25Differential-revelation Algorithm
- Like EBF algorithms, except in step 3,
determination of the set of combinations that are
considered for expansion - M k?OPEN Tight(k) ? ?k ?d for all d with
Tight(d) ? ?k lt ?d for all d with Not(Tight(d))
26Differential-revelation Theoretical results
- Any algortihm of the modified EBF family finds a
welfare-maximizing feasible allocation - Given an arbitrary subset of rank lattice nodes,
the set M is the same whether the original EBF or
the differential-revelation EBF is used - No additional revelation is needed to determine
the VCG payments - The differential-revelation mechanisms are
incentive compatible and economically efficient
27Policy independent elicitor algorithms
28Some of our elicitors query types
- Order information Which bundle do you prefer, A
or B? - Value information What is your valuation for
bundle A? (Answer Exact or Bounds) - Rank information
- What is the rank of bundle b?
- What bundle is at rank x?
- Given bundle b, what is the next lower (higher)
ranked bundle?
29Interrogation An Example
Questions of the Auctioneer Answers of the
Agents
- a1,a2 Give me your highest ranking bundle
- a1,a2 Give me your next best bundle
- a1 Give me your valuation for AB and Aa2 Give
me your valuation for AB and B
- a1 AB, a2 AB(not feasible)
- a1 A, a2 B(feasible)
- a1 vAB8, vA4a2 vAB9, vB6
30General Algorithmic Framework for Elicitation
Algorithm Solve(Y,G) while not Done(Y,G) do o
SelectOp(Y,G) ? Choose question I
PerformOp(o,N) ? Ask bidder G Propagate(I,G) ?
Update data structures with answer Y
Candidates(Y,G) ? Curtail set of candidate
allocations
Output Y set of optimal allocations Input Y
set of candidate allocations (some may turn
out infeasible, some suboptimal) G partially
augmented order graph
31General Task of the Procedures
- Done checks if the topological structure has
been sufficiently explored to exclude
existence of better solutions - In SelectOp, a Policy determines which questions
to ask next - PerformOp asks the questions and obtains
answers - Propagate will update the augmented order graph
- Candidates will determine a new set of potential
solutions based on the update graph
32(Partially) Augmented Order Graph
8
8
8
8
8
8
Ø
B
A
AB
Agent1
A
Ø
0
0
0
0
gt
Allocations
B
B
4
0
3
6
2
6
1
9
Ø
A
B
AB
Agent2
1
1
0
0
1
6
1,1
1,2
2,1
Rank
Upper Bound
3,1
2,2
1,3
1
9
2,3
3,2
1,4
1,4
AB
6
2,4
3,3
4,2
3,4
4,3
Lower Bound
4,4
Some interesting procedures for combining
different types of info
33Storing the answer
- Interval constraint networks, 1 per agent
- Nodes store upper/lower bounds on value of
bundle - Edge (b,b) means vi(b) ? vi(b)
- At start create all nodes, add edges for free
disposal
34Constraint Network
111
1 per agent
110
101
011
100
010
001
000
35Constraint Network
0,?
111
Upper bound
0,?
0,?
0,?
110
101
011
Lower bound
0,?
0,?
0,?
100
010
001
0
000
36Constraint Propagation
0,?
111
vi(110)5
0,?
0,?
5
110
101
011
0,?
0,?
0,?
100
010
001
0
000
37Constraint Propagation
0,?
111
vi(110)5
0,?
0,?
5
110
101
011
0,?
0,?
0,?
100
010
001
0
000
38Constraint Propagation
5,?
111
vi(110)5
0,?
0,?
5
110
101
011
0,5
0,5
0,?
100
010
001
0
000
39Constraint Propagation
5,?
111
vi(110)5
0,?
0,?
5
110
101
011
0,5
0,5
0,?
100
010
001
0
000
40Constraint Propagation
5,?
111
vi(110)5
0,?
0,?
5
110
101
011
0,5
0,5
0,?
100
010
001
0 ,5
000
000
Additional edges from order queries
41Constraint propagation
- Davis87 shows propagation is
- complete for assimilation (values for UB, LB are
as tight as they can be made) - incomplete for inference (cannot always use
values to infer vi(b) ? vi(b)) - Need to use both values and network topology
during inference
42Are we done yet?
- Need to stop when enough information has been
gathered - Store list of possible allocations (candidates)
C - After each phase, eliminate allocations that
cannot be optimal v(c) ? v(c) - Stop when C 1
43We present algorithms that use any combination of
value, order rank queries
- If value queries are used, all social welfare
maximizing allocations are guaranteed to be found - Otherwise, all Pareto efficient allocation are
guaranteed to be found - We propose several query policies that are geared
toward reducing the number of queries needed
44What to query should the elicitor ask (next) ?
- Simplest answer value query
- Ask for the value of a bundle vi(b)
- How to pick b, i?
- First try Randomly (subject to not asking
queries whose answer can be inferred from info
already elicited)
45Random elicitation with value queries only
- Thrm. If the full-revelation (direct) mechanism
makes Q value queries and the best
value-elicitation policy makes q queries, we
make value queries - Proof idea We have q red balls, and the
remaining balls are blue how many balls do we
draw before removing all q red balls? - Universal revelation reducer
- Is it tight? Run experiments
46Experimental setup for all graphs in this talk
- Simulations
- Draw agents valuation functions from a random
distribution where free disposal is honored - Run the auction auctioneer asks queries of
agents, agents look up answer from a file - Each point on plots is average of 10 runs
47Random elicitation
- Not much better than theoretical bound
queries
queries
2 agents
4 items
80
1000
60
Full revelation
100
Queries
40
10
20
1
9
2
2
3
4
5
6
3
4
5
6
7
8
10
agents
items
48Querying random allocatable bundle-agent pairs
only
- Bundle-agent pair (b,i) is allocatable if some
yet potentially optimal allocation allocates
bundle b to agent i - How to pick (b,i)?
- Pick a random allocatable one
- Asking only allocatable bundles means throwing
out some queries - Thrm. This restriction causes the policy to make
at worst twice as many expected queries as the
unrestricted random elicitor. (Tight) - Proof idea These ignored queries are either
- Not useful to ask, or
- Useful, but we would have had low probability of
asking it, so no big difference in expectation
49Querying random allocatable bundle-agent pairs
only
- Much better
- Almost (items / 2) fewer queries than
unrestricted random - Vanishingly small fraction of all queries asked !
- Subexponential number of queries
queries
queries
80
1000
60
Full revelation
100
40
Queries
10
20
1
2
3
4
5
6
3
4
5
6
7
8
9
2
10
agents
items
50Best value query elicitation policy so far
Focus on allocations that have highest upper
bound. Ask a (b,i) that is part of such an
allocation and among them, pick the one that
affects (via free disposal) the largest number
of bundles in such allocations.
Fraction of values queried before optimal
allocation found proven
Number of items for sale
51Order queries
- Order query agent i, is bundle b worth more to
you than bundle b ? - Motivation Often easier to answer than value
queries - Order queries are insufficient for determining
welfare maximizing allocations - How to interleave order, value queries?
- How to choose i, b, b ?
52Value and order queries
- Interleave
- 1 value query (of random allocatable agent-bundle
pair) - 1 order query (pick arbitrary allocatable i, b,
b ) - To evaluate, in the graphs we have
- value query costs 1
- order query costs 0.1
53Value and order queries
- Elicitation cost reduced compared to value
queries only - Cost reduction depends on relative costs of order
value queries
54Rank lattice based elicitation
- Go down the rank lattice in best-first order (
EBF) - Performance not as good as value-based why?
- nodes in rank lattice is 2bidders items
- feasible nodes is only biddersitems
queries
queries
80
1000
Full revelation
60
100
40
Queries
10
20
1
2
3
4
5
6
4
6
8
2
10
12
agents
items
55Bound-approximation queries
- Often bidders can determine their valuations more
precisely by allocating more time to deliberation
S. AAAI-93, ICMAS-95, ICMAS-96, IJEC-00 Larson
S. TARK-01, AGENTS-01 workshop, SITE-02 Parkes
IJCAI workshop-99 - Get better bounds UBi(b) and LBi(b) with more
time spent deliberating - Idea dont ask for exact info if it is not
necessary - Query agent i, hint spend t time units
tightening the upper (lower) bound on b - How to choose i, b, t, UB or LB ?
- For simplicity, in the experiment graph, fix t
0.2 time units (1 unit gives exact)
56Bound-approx query policy
This slide is hidden later, it should replace
the next slide.
- For simplicity, fix t 0.2 units (1 unit gives
exact) - Can choose randomly.
- More complicated policy does slightly better
- Choose query that will change the bounds on
allocatable bundles the most - Dont know how much bounds will change
- Will try 3 policies
- Compute expectation (assume uniform distribution)
- Be optimistic assume most possible change
- Be pessimistic assume least possible change
57Bound-approximation query policy
- Could choose the query randomly
- More sophisticated policy does slightly better
- Choose query that will change the bounds on
allocatable bundles the most - Dont know exactly how much bounds will change
- Assume all legal answers equiprobable, sample to
get expectation
58Bound-approximation queries
- This policy does quite well
- Future work try other related policies
queries
queries
160
1000
Full revelation
120
100
Query cost
80
10
40
1
9
2
2
3
4
5
6
3
4
5
6
7
8
10
agents
items
59Bound-approximation a note
- To choose which query to ask, we calculated the
expected change it makes - But what is change from ? ?
- Policy actually is ask everyone for an UB on the
grand bundle first - After that, we neednt worry about ?
- Thrm. Upper bound on value of grand bundle is
needed for all but one agent - Thrm. With more than one bidder, eliciting the
grand bundle from every agent cannot increase the
length of the shortest elicitation certificate
60Supplementing bound-approximation queries with
order queries
- Integrated as before
- Computationally more expensive
queries
queries
160
1000
Full revelation
120
Total cost
100
80
Order cost
10
Value cost
40
1
2
3
4
5
6
3
4
5
6
7
8
9
2
10
agents
items
61A potentially better policy
- Assume auctioneer has an oracle that says which
allocation is optimal. How to verify? - To prove optimality, need to
- Prove sufficiently tight LB on optimal
- Prove sufficiently tight UB on all others
- Indicates a strategy when oracle is missing
- Usually ask queries that reduce UB
- But, need to sometimes raise LB
62Incentive compatibility
- Elicitors questions leak information about
others preferences - Can be made ex post incentive compatible
- Ask enough questions to determine VCG prices
- Worst approach bidders1 elicitors
- Could interleave these extra questions with
real questions - To avoid lazyness Not necessary from an
incentive perspective - Agents dont have to answer the questions may
answer questions that were not asked - Unlike in price feedback (tatonnement)
mechanisms Bikhchandani-Ostroy, Parkes-Ungar,
Wurman-Wellman, Ausubel-Milgrom,
Bikhchandani-deVries-Schummer-Vohra, - Push-pull mechanism
63Universal revelation reducers
64Universal revelation reducer
- Def. A universal revelation reducer is an
elicitor that will ask less than everything
whenever the shortest certificate includes less
than all queries - Thrm Hudson Sandholm 03 No determionistic
universal revelation reducer exists - A randomized one exists
- (E.g., the one that asks random unknown value
queries)
65Elicitation where worst-case number of queries is
polynomial in items
66Read-once valuations
- Thrm. If an agent has a read-once valuation
function, the number of queries needed to elicit
the function is polynomial in items - Thrm. If an agents valuation function is
approximable by a read-once function (with only
MAX and PLUS nodes), elicitor finds an
approximation in a polynomial number of queries
Zinkevich, Blum, Sandholm ACMEC-03
67Toolbox valuations
- Items are viewed as tools
- Agent can accomplish multiple goals
- Each goal has a value requires some subset of
tools - Agents valuation for a package of items is the
sum of the values of the goals that those tools
allow the agent to accomplish - E.g. items medical patents, goals medicines
- Thrm. If an agent has a toolbox valuation
function, it can be elicited in O(items ?
goals) queries
682-wise dependent valuations
- Thrm. If an agent has a 2-wise dependent
valuation function, elicitor finds it in n(n1)/2
queries - Thrm. If an agents valuation function is
approximately 2-wise dependent, elicitor finds an
approximation in n(n1)/2 queries - Thrm. Every super-additive valuation function is
approximately 2-wise dependent - Thrm. These results generalize to k-wise
dependent valuations
69Towards a broad polytime elicitor
- Thrm. If agents valuation function is in
- Read-once valuations (with SUM and MAX gates
only) - Toolbox valuations
- 2-wise dependent valuations
- then elicitor can learn the function using
- O(items2 items ? goals) queries
?
?
70Combining polynomially elicitable classes
- Thrm. Conitzer, Sandholm, Santi 03 If Class C1
is elicitable in polytime and class C2 is
elicitable in polytime, then C1 U C2 is
elicitable in polytime
71Power of multi-agent elicitation
- Thrm. For some classes of valuation functions,
- eliciting the function requires an exponential
number of queries, - but a polynomial number of queries suffices for
allocating the items optimally among the agents
72Ascending combinatorial auctions
73Demand queries
- If these were the prices, which bundle would you
buy? - A value query can be simulated by a polynomial
number of demand queries - A demand query cannot be simulated in a
polynomial number of value queries Nisan
74Ascending combinatorial auctions
- Increase prices until each item is demanded only
once - Item prices vs. bundle prices
- E.g. where there exist no appropriate item prices
- Discriminatory vs. nondiscriminatory prices
Bundle Bidder 1s valuation Bidder 2s valuation
1 0 2
2 0 2
1,2 3 2
75Competitive equilibrium
- Def. Competitive equilibrium (CE)
- For each bidder, payoff max vi(S) pi(S), 0
- Sellers payoff maxS ? Feasibles ?i pi(S)
- Prices can be on bundles and discriminatory
- Thrm. Allocation S is supported in CE iff it is
an efficient allocation - Thrm Parkes 02 NisanSegal 03. In a
combinatorial auction, the information implied by
best-responses to some set of CE prices is
necessary and sufficient as a certificate for the
optimal allocation
76Communication complexity of ascending auctions
- Exponential in items in the general case
- (like any other preference elicitation scheme)
- If items are substitutes (for each agent), then a
Walrasian equilibrium exists, - i.e., nondiscriminatory per-item prices suffice
for agents to self-select the right items - Number of queries needed to find such prices is
polynomial in items Nisan Segal 03
77Conclusions on preference elicitation in
combinatorial auctions
- Combinatorial auctions are desirable winner
determination algorithms now scale to the large - Another problem The Revelation Problem
- Valuation computation / revelation /
communication - Introduced an elicitor that focuses revelation
- Provably finds the welfare maximizing (or Pareto
efficient) allocations - Policy dependent search algorithms for
elicitation - Based on topological observations
- Optimally effective among admissibly equipped
elicitors - Eliciting value differences suffices
- Policy independent general elicitation framework
- Uses value, order rank queries (etc)
- Bound-approximation queries takes incremental
revelation further - Several algorithms, data structures query
policies in the paper - Only elicits a vanishingly small fraction of the
valuations - Presented a way to make the elicitor incentive
compatible - Yields a push-pull partial-revelation mechanism
78Conclusions on ascending combinatorial auctions
- Demand queries (exponentially more powerful than
value queries) - Per-item prices vs. bundle prices
- Discriminatory vs. nondiscriminatory prices
- Exponential communication complexity, but
polynomial in special classes (e.g., when items
are substitutes) - To allocate optimally, enough info has to be
elicited to determine the minimal competitive
equilibrium prices - Could also use descending prices
79Future research on multiagent preference
elicitation
- Scalable general elicitors (in queries, CPU, RAM)
- Current run-time exp in items, poly in agents
- Current space exp in items, linear in agents
- More powerful queries, e.g. side constraints
- New query policies
- New polynomially elicitable valuation classes
- Using models of how costly it is to answer
different queries Hudson S. AMEC-02 - Decision-theoretic elicitation using priors
- Elicitors for markets beyond combinatorial
auctions - (Combinatorial) reverse auctions exchanges
- (Combinatorial) markets with side constraints
- (Combinatorial) markets with multiattribute
features -
- Other applications (e.g. voting Conitzer S.
AAAI-02)