Department of Computer Science | Institute of Theoretical Computer Science

CADMO - Center for Algorithms, Discrete Mathematics and Optimization

Algorithmic Game Theory

Short course description


Game theory provides a good model for the behavior and interaction
of the selfish users and programs in large-scale distributed computer
systems without central control. The course discusses algorithmic
aspects of game theory, such as a general introduction to game theory,
auctions, mechanisms, the costs of a central control optimum versus
those of an equilibrium under selfish agents, and algorithms and
complexity of computing equilibria.

Alternatively, you can also have a look at the course page in the ETH course catalog (VVZ)

Weekly schedule

Lectures

weekly on Mondays, 9-12, in CAB G51 by

Problem Classes

weekly on Mondays, 15-17, in CAB G59 and in CAB G56

Topics

Literature

There are no lecture notes for the course. Taking your own notes is advisable. Some of the material presented in the lecture can be found in the following books:

Problem Classes

There will be weekly exercise assignments. They will appear every Tuesday noon on this web page. You are encouraged to hand in solutions to the problems on Monday during the (following) lecture or at the beginning of the (same day) problem class. The (handed in) solutions will be looked at and returned with comments in the subsequent week.

Exam/Grades

There will be a written exam in the exam session. The exact date will be announced later by the examination office. It will take 3 hours. It will be a closed-book examination.

Following the new D-INFK guidelines for doctoral studies, PhD students get credit points according to the same rules that apply for Bachelor or Master students. That is, with a final grade of at least 4
doctoral students will receive 7KE, and 0KE otherwise.

What are the "sixth hour" in the Course Catalogue and the seventh credit point supposed to mean?

Apart from three regular lecture (V) hours and two hour of exercises (U), this course comes with one extra sixth hour of independent work (A); this makes 7 credit points. You will deserve the credits for the A-unit by independent work, i.e. studying and learning material (also prerequisites) on your own. Details will be announced at the beginning of the course the latest.

Schedule and Weekly Exercises

Date

Topic

Exercise Sheets

References

Sep 23

Introduction; Sharing the Cost of a Multicast Transmission; Auctions; Social Choice

Sheet 1

partially chapter 14 of AGT; in detail this paper; also, chapter 9.3 of AGT

Sep 30

Prisoner's Dilemma, Pollution Game; Strategic Games; Dominant-Strategy Equilibrium, Dominance Principle, Iterative Elimination of Dominated Strategies, Nash Equilibrium; Extensive Games, Game Trees, Backward Induction

Sheet 2

Chapters 1.1 to 1.3.3, 3.7, and 3.8 in AGT

Oct 07

Mixed Strategies, Mixed Strategy Nash Equilibrium, Best Response Characteristics;
Sperner Lemma, Brouwer's Fixed Point Theorem, Nash Theorem

Sheet 3

Chapter 3.2 and 3.9 in AGT, Chapters 3 and 7 in GTS; this short note

Oct 14

Congestion and Potential Games; Best and Better Response Dynamics;
Rosenthal's Potential Function; Class PLS; Hardness of Finding NE in
Congestion Games

Sheet 4

Chapters 19.3, 19.3.2, and 19.3.4 in AGT

Oct 21

Inefficency of Equilibria: Price of Anarchy and Price of Stability. Load Balancing Games, Selfish Routing Games, Pigou's Example, Braess paradox, Wardrop Theorem

Sheet 5

Lecture notes of Chekuri's course; Sections 17.1, 17.2.1, 17.2.2, 17.2.3 and Chapter 18 in AGT
PoA in nonatomic routing games

Oct 28

Network Formation Games: Global Connection Games (Network Design Games), and Local Connection Games (Network Creation Games)

Sheet 6

Chapters 19.1, 19.2, and 19.3 in AGT

Nov 4

Introduction to Mechanism Design; Voting Methods; Arrow's and Gibbard-Satterthwaite's Impossibility Theorems

Sheet 7

Chapters 9.1 and 9.2 in AGT

Nov 11

Mechanisms without Money: The House Allocation Problem; Stable Matchings

Sheet 8

Chapters 10.3 and 10.4 in AGT (Please note that the TTCA algorithm in the book is wrong!)

Nov 18

Mechanisms with Money: VCG Mechanisms, Job Scheduling on Related Parallel Machines

Sheet 9

Chapters 9.3, 9.4, 9.5 and 12.2 in AGT

Nov 25

Generalized Auctions: Combinatorial Auctions; Computational Complexity, Communication Complexity; LOS Mechanism

Sheet 10

Chapters 11.1 and 11.2 in AGT

Dec 2

Matching Markets, Market-Clearing Prices; Sponsored Search, Generalized Second Price Auction

Sheet 11

Chapters 28.1, 28.2, 28.3.1 in AGT. Chapters about matching markets and sponsored search in the book "Networks, Crowds, and Markets:
Reasoning About a Highly Connected World" by D. Easley and J. Kleinberg

Dec 09

Spreading Influence/Information in Social Networks. Cascading Behavior

Sheet 12

Selected sections of Chapter 24 (24.1, 24.2, 24.4, plus the definitions of 24.3 needed in 24.4)

Dec 16

Myerson's Lemma; Knapsack Auctions

No Sheet

Lecture notes of Lectures 3 and 4 of the AGT course by Tim Roughgarden