Refined Mechanism Design for Approximately Structured Priors via Active Regression

We consider the problem of a revenue-maximizing seller with a large number of items $m$ for sale to $n$ strategic bidders, whose valuations are drawn independently from high-dimensional, unknown prior distributions. It is well-known that optimal and even approximately-optimal mechanisms for this setting are notoriously difficult to characterize or compute, and, even when they can be found, are often rife with various counter-intuitive properties. In this paper, following a model introduced recently by Cai and Daskalakis~\cite{cai2022recommender}, we consider the case that bidders' prior distributions can be well-approximated by a topic model. We design an active learning component, responsible for interacting with the bidders and outputting low-dimensional approximations of their types, and a mechanism design component, responsible for robustifying mechanisms for the low-dimensional model to work for the approximate types of the former component. On the active learning front, we cast our problem in the framework of Randomized Linear Algebra (RLA) for regression problems, allowing us to import several breakthrough results from that line of research, and adapt them to our setting. On the mechanism design front, we remove many restrictive assumptions of prior work on the type of access needed to the underlying distributions and the associated mechanisms. To the best of our knowledge, our work is the first to formulate connections between mechanism design, and RLA for active learning of regression problems, opening the door for further applications of randomized linear algebra primitives to mechanism design.

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Peer review

Reviewer mHuT7/10 · confidence 3/52023-07-01

Summary

This paper demonstrates that results qualitatively similar to [CD'22] can hold under considerably weaker considers on the latent-factor matrix A, by using randomized linear algebra and a modified mechanism design to circumvent prior restrictions. EDIT: The rebuttal convinced me of the significance of the work and its contribution, and I have raised my score accordingly.

Strengths

1. This paper substantially weakens the requirements on the design matrix A required by CD22 2. The mechanism design argument based on translating Prokhorov distance into TV distance via rounding seems novel and more broadly useful. 3. This paper makes an interesting connection between randomized linear algebra and mechanism design that is relatively new to the statistical learning community. 4. The comparison to past work is thoroughly explained. 5. The notation table was much appreciated.

Weaknesses

1. It seems that there is quite a lot of notational overheard, and quite a few assumptions. There are many notions of error and approximation floating around and it would be beneficial to try and streamline some of them. For example, having a recapitulation of assumptions in the appendix would be helpful. 2. At times, it feels like the paper is making an incremental contribution to a rather niche setting. Correct me if I'm wrong but it seems that the techniques for RLA are fundamentally standard, even if the notion of approximation is specific to this setting. 3. The authors should try to explain what if any contributions they make to mechanism design / Econ+ML more broadly. One can always imagine defining newer settings with more minutiae. Why is this the "right one"? In summary, my main concern is whether or not this particular set of assumptions is more "fundamental" than CD'22, and whether the techniques here (esp. in rounding for Mechanism Design), are more broadly useful.

Questions

Are there other Mechanism Design arguments based on Prokhorov's Distance in the literature? Could the results of CD22 be improved or simplified using your proof techniques? In Defn 4, the authors assume access to "elements of t_i + epsilon_...". Do they mean "entries of"?

Rating

7: Accept: Technically solid paper, with high impact on at least one sub-area, or moderate-to-high impact on more than one areas, with good-to-excellent evaluation, resources, reproducibility, and no unaddressed ethical considerations.

Confidence

3: You are fairly confident in your assessment. It is possible that you did not understand some parts of the submission or that you are unfamiliar with some pieces of related work. Math/other details were not carefully checked.

Soundness

4 excellent

Presentation

3 good

Contribution

3 good

Limitations

The setting is somewhat niche. In particular, the RLA model assumes queries of the elements of valuation vectors up to noise. This requires that the principal can elicit somewhat truthful valuations of items from the agent. This assumption is treated non-economically; i.e, the agent is assumed to be at most "epsilon_nq"-strategic. I think the authors should comment on why it is realistic to assume not only query access, but access to (approximately truthful) queries!

Reviewer RniX6/10 · confidence 3/52023-07-04

Summary

The paper studies Bayesian approximate mechanism design in a structured world, where each bidder's preferences can be roughly captured by a "topic model", i.e., the true valuation function is close to a linear combination of a few representative valutions. Inspired by prior work, the paper follows a two-stage design: the seller first "queries" each bidder and tries to recover the bidder's latent valuation (i.e., coefficients corresponding to the representative valuations) Then, with the recovered approximate latent valuations, the seller constructs a mechanism by placing blackbox queries to a good mechanism in the latent space. (Importantly, it is assumed that we already know a good mechanism in the latent space.) The main result is a design that requires much milder regularity conditions on the representative valuations, which also requires less communication with bidders. The new design works for metrics induced by $\ell_p$ norms for $p \in [1, \infty)$ whereas prior work focuses on the $\ell_\infty$ norm.

Strengths

The paper is fairly well organized. In particular, the authors clearly explain their technical contributions in the main paper without giving too much detail, which I appreciate very much. The paper studies a sensible and well recognized problem and makes solid progress. Conceptually, I like the "observation" that designing the query scheme is really closely related to central problems in numerical linear algebra, which indeed enables the authors to borrow ideas from that extremely rich body of research. Technically, the authors give a good overview of their approach, and I'm convinced that there are nontrivial ideas involved.

Weaknesses

The paper is (unavoidably) a bit dense with heavy notation, etc. I think it would help to use a simple running example to illustrate how things work. The mechanism is also a bit complex, which is not ideal but perhaps hard to avoid too.

Questions

(Also including detailed comments here) Line 42, "... often depende on the number of items m, which could be prohibitively large ...": while this claim is largely true, I wonder to what extent this is because of the intrinsic richness of information induced by heterogeneous items. E.g., if all items are the same then at least the amount of communication needed shouldn't depend on m. Can you comment on this? Line 69, conditions on A: do you mean "(i), (ii), *or* (iii)"? Line 149, $v_i: \mathbb{R}^d \times [0, 1])^m \to \mathbb{R}_+$: so the allocation of a mechanism is one number between [0, 1] for each item? Is this general enough when bidders have non-additive valuations (e.g., a randomized mechanism may need to specify how items correlate in addition to the marginal probabilities)? Or do you really mean $\{0, 1\}^m$? Line 154, "$x: \mathbb{R}_+^{nd} \to [0, 1]^{nm}$": again, why output only the marginal probabilities here? Line 219, "we don't have bounds of the form ...": this is a bit confusing at this point because Definitions 3 and 5 both talk about bounds precisely of this form. Can you clarify? Line 323, Theorem 2: here you do write "$v_i: \mathbb{R}^d \times 2^{[n]}$". Would be nice to be consistent (also see earlier comments).

Rating

6: Weak Accept: Technically solid, moderate-to-high impact paper, with no major concerns with respect to evaluation, resources, reproducibility, ethical considerations.

Confidence

3: You are fairly confident in your assessment. It is possible that you did not understand some parts of the submission or that you are unfamiliar with some pieces of related work. Math/other details were not carefully checked.

Soundness

4 excellent

Presentation

3 good

Contribution

3 good

Limitations

n/a

Reviewer wo8x5/10 · confidence 2/52023-07-06

Summary

This paper presents an intriguing correlation between mechanism design and randomized linear algebra within regression problems. I find the parallel drawn between the approximation error in active learning for regression issues and $(\epsilon, \delta)$-Bayesian incentive compatibility in mechanism design particularly insightful. The authors further demonstrate, through the delegation of results from the active learning for regression problem, the possibility of creating a higher-dimensional mechanism from a lower-dimensional one.

Strengths

This paper appears to bridge the gap between two previously disconnected problems. This represents a highly intriguing venture in terms of enhancing our understanding of diverse issues and facilitating cross-domain learning. The potential for knowledge transfer and interdisciplinary insights is certainly commendable in this work.

Weaknesses

While this paper tackles potentially insightful ideas, I found it somewhat challenging to follow the authors' explanations. It seems that the essence of their contributions could be further highlighted and articulated. I encourage the authors to strive for greater clarity and more effective communication of their key points to enhance the overall readability and impact of their work.

Questions

I must commend the authors for these novel observations. However, I feel that the paper heavily leans on results already established in the literature, with less emphasis on clarifying the newly introduced correlation. I must confess that I found sections of the paper challenging to grasp. While the contributions of the paper could indeed be noteworthy, they would certainly benefit from improved elucidation. Please consider enhancing the presentation to ensure a more comprehensive understanding for readers.

Rating

5: Borderline accept: Technically solid paper where reasons to accept outweigh reasons to reject, e.g., limited evaluation. Please use sparingly.

Confidence

2: You are willing to defend your assessment, but it is quite likely that you did not understand the central parts of the submission or that you are unfamiliar with some pieces of related work. Math/other details were not carefully checked.

Soundness

2 fair

Presentation

1 poor

Contribution

2 fair

Limitations

NA

Reviewer Nu2U7/10 · confidence 4/52023-07-11

Summary

In this paper, the authors extend the model proposed by [CD22] to a more general setting and incorporate the techniques from Randomized Linear Algebra (RLA) for active learning literature with revenue-maximizing multi-item mechanism design. Compared with [CD22], this paper extends the infinity norm to any l_p norm when measuring the approximation of query protocol so that the RLA for active learning techniques can be applied to improve the accuracy of the query protocol. In terms of the mechanism design front, the authors relax many restrictive assumptions in [CD22]. This paper seems the first paper utilizing RLA for active learning of regression problems to mechanism design.

Strengths

This paper lies in the intersection between game theory and learning algorithms and it should be of interest to many researchers in this field. The paper is well-structured and the authors convey the main contributions of the paper in a very clear way, which is easy to understand as a researcher in the EconCS field. The paper is technically solid and the theoretical results are non-trivial. Even though this paper is regarded as an “incremental” paper built upon [CD22], the technical contribution of this paper is still significant. Overall I like this paper and recommend the acceptance of this work.

Weaknesses

The novelty of this paper is limited, given it follows the exact same setting in [CD22], but I am not too bothered by this. It will be better to state Lemma 2 more explicitly, as it is one of the main technical novelties of this paper.

Questions

The authors mention they can also improve the results in [CD22] for the infinity norm setting. Can you provide more discussions in the main context? What is the improvement? How significant compared with [CD22]. How important is the $l_p$ norm metric in your proof, is all the RLA literature focusing on $l_p$ norm? Is there a way to utilize the techniques there for $l_\infty$ norm. IIUC, the reason you can relax the assumptions (e.g. the relaxed oracle access to the distribution) from [CD22] in the mechanism design front highly depends on $l_p$ norm? Can you provide more discussions regarding this?

Rating

7: Accept: Technically solid paper, with high impact on at least one sub-area, or moderate-to-high impact on more than one areas, with good-to-excellent evaluation, resources, reproducibility, and no unaddressed ethical considerations.

Confidence

4: You are confident in your assessment, but not absolutely certain. It is unlikely, but not impossible, that you did not understand some parts of the submission or that you are unfamiliar with some pieces of related work.

Soundness

4 excellent

Presentation

3 good

Contribution

3 good

Limitations

N/A

Reviewer pEGj7/10 · confidence 1/52023-07-12

Summary

Based on a model by Cai and Daskalakis [CD22], the authors propose a modular approach to design Bayesian Incentive Compatible mechanisms. In step 1, the algorithm learns the agent's type vector which is a very high dimensional vector. In step 2, given a mechanism based on the low-dimensional type learned in step 1, the author propose a way to robustify the mechanism.

Strengths

1. The interaction between linearized linear algebra and mechanism design is explored, which is very exciting.

Weaknesses

see limitations.

Questions

1. What would be the potential challenges if we want to extend the result to other two-sided market models? 1. A key assumption is that the type distribution admits some form of low-dimensional representation. How could one verify this assumption in realistic settings such as ad auctions for e-commerce?

Rating

7: Accept: Technically solid paper, with high impact on at least one sub-area, or moderate-to-high impact on more than one areas, with good-to-excellent evaluation, resources, reproducibility, and no unaddressed ethical considerations.

Confidence

1: Your assessment is an educated guess. The submission is not in your area or the submission was difficult to understand. Math/other details were not carefully checked.

Soundness

3 good

Presentation

3 good

Contribution

3 good

Limitations

The paper is theoretical and brings out the connection between randomized linear algebra and mechanism design. As a non-expert, I did not have the time to check the proof, but in my opinion, the paper adds valuable insights to the field of mechanism design.

Reviewer NuQU3/10 · confidence 2/52023-07-21

Summary

This paper studies mechanism design for auctions. A model of the bidders preferences with a low dimensional latent state is proposed. By interacting with the bidders, the latent state can be estimated with active learning. From here a mechanism design is derived. Disclaimer: I am not an expert in mechanism design, however I have a background in mathematics, computer science and ML. Unfortunately, I found this paper extremely hard to understand despite significant effort.

Strengths

* The paper brings together results from active learning and mechanism designs. * The paper refines and strengthens results from prior work.

Weaknesses

I found this paper really challenging to read. The introduction is long, too formal to provide a mtahematical introduction but not formal enough to make sense to give a complete formal picture. After the introduction the setting is formally introduced, creating redundancy and leaving the reader with 6 pages of setup that is extremely hard to understand without additional background knowledge. I am also missing concrete and simple examples to illustrate the setting, or possible a picture/diagram of the seller/bidder interaction. I cannot evaluate the significance of this work; in my view the work is also not directly related to machine learning (except for invoking some fairly standard results on active learning). Perhaps this paper is better off at a different venue. To make this paper more accessible, I suggest have a less formal, but more complete introduction (in terms of the background); then the formal setting (possibly simplified), explaining the key ideas of the procedure (not just the results). See my questions below. I did not comprehend section 3.2 despite a reasonable effort. Despite myself lacking the relevant background, I think the accessibility of this paper needs to be improved before acceptance. The relevance to the ML community is also not clear.

Questions

General questions: * On a high level, what is the goal and what is optimized? i.e. what are the actions of the seller and the bidders, and what's the interaction/information exchange protocol? * What is the significance of having n bidders? It seems to me that there is no structure shared between the bidders, so the procedure is applied to each bidder i independently. line 25: what is "willingness to pay"? is this simply the maximal price the bidder is willing to pay for a subset of items? line 48/64: Here A \in R^(m times k) but later we have that A \in R^(d times k). This is very confusing. What is the interpretation of the vector Az_i? Are those prices the bidder i is willing to pay? line 66: "communication-efficient query protocol Q for interacting with each bidder". Most terms here have not been introduced nor can be reasonably inferred from the context. line 75-79: This paragraph is impossible to understand just from this paper. E.g. u_i, v_i have not been introduced. It is not explained what a transformation of a mechanism is (nor is it clear what the mechanism itself is). line 101: What is d? Before there was only m, n and k? line 150: What's a randomized subset? What and how is randomized? line 154: Some more intuitive explanation of "mechanism" is needed. What are "reported types" what are "allocations of the items and payments?" What's a valuation profile? line 162-171: What's the relevance of truthful mechanism, and how do we ensure to get a truthful mechanism? Can you explain the equation 166 more intuitively? line 189: What's a bundle? Previous we had "randomized subsets"? At least make the terminology consistent. line 223: What was the reason to introduce the index i in the first place? line 271: What's the protocol "Q"? It seems like the more interesting contributions are left out of the main part of the paper. I would suggest to add some examples to illustrate active learning protocol. line 332: What's an indirect mechanism? Minors: line 24: add range, i.g. "i \in [n]" display above line 87: What's the range of x?

Rating

3: Reject: For instance, a paper with technical flaws, weak evaluation, inadequate reproducibility and incompletely addressed ethical considerations.

Confidence

2: You are willing to defend your assessment, but it is quite likely that you did not understand the central parts of the submission or that you are unfamiliar with some pieces of related work. Math/other details were not carefully checked.

Soundness

2 fair

Presentation

1 poor

Contribution

2 fair

Limitations

see above

Reviewer NuQU2023-08-14

I'd like to thank the authors for the clarification. I still have the following question: Where exactly is it relevant to have more than one bidder $i$ in the context of the contributions of this work? I.e. I understand that the standard mechanism design allows for multiple bidders, but here, as far as I understand, the bidders are treated individually? I agree now that this work is within the scope of NeurIPS, as also pointed out by the AC. However the concerns about accessibility as well as organization of the paper (i.e. presenting the main algorithm) remain. In particular, I believe that this paper requires a major revision, and needs to be re-evaluated based on the changes. For this reason, I will keep my score at 3 ("Reject"). I'd also like to point out that other reviewers seem to share these concerns, despite better final evaluation, in particular w.r.t. presentation (wo8x, RniX, mHuT) and also unclear contributions.

Authorsrebuttal2023-08-15

Thank you for your comment. Regarding presentation, part of the complexity comes from needing to use technical language from two, previously disjoint areas. As we already mentioned in the global response, we will do our best to improve the presentation of our work, by including figures and addressing reviewer comments/misunderstandings (so, please give us more concrete feedback if you have any). Regarding your question about where it's relevant to have more bidders, our entire reduction/mechanism design component needs to take care of the existence of multiple bidders. This heavily complicates arguing about incentives, since the BIC constraint is a statement about an expectation over other agents' types (drawn from a distribution not known to the mechanism). See, e.g., the proof of Lemmas 3, 4, and 5 in Appendix C.2.

Reviewer mHuT2023-08-14

Thank you for the rebuttal!

I would like to begin by apologizing if I seemed to imply that online auctions is "niche" :). My concern was that, the specific combination of assumptions, criteria and query started to feel somewhat arbitrary. But, upon reading the rebuttal, I am convinced of the novelty of this work. In my first review, I missed the restriction of CD22 to additive valuations, which seems incredibly limiting. Weakening assumptions on the design matrix would make me less enthusiastic, but together with removing additivity I am pleased. I also appreciate the explanation of the robustness of queries from the perspective of approximate truthfulness. I am raising my score to a 7.

Reviewer Nu2U2023-08-14

Thanks for the response. My score remains the same.

Reviewer wo8x2023-08-20

After carefully reading through the feedback from all reviewers, as well as revisiting the paper, I note that a majority of reviewers—4 out of 6—believe the paper successfully bridges two fields and offers significant contributions. In light of this consensus, I am inclined to concur with my esteemed colleagues that the paper merits acceptance. Therefore, I would like to formally recommend the paper for acceptance.

Program Chairsdecision2023-09-21

Decision

Accept (poster)

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