Peer grading systems work well only if users have incentives to grade truthfully. An example of non-truthful grading, that we observed in classrooms, consists in students assigning the maximum grade to all submissions. With a naive grading scheme, such as averaging the assigned grades, all students would receive the maximum grade. In this paper, we develop three grading schemes that provide incentives for truthful peer grading. In the first scheme, the instructor grades a fraction p of the submissions, and penalizes students whose grade deviates from the instructor grade. We provide lower bounds on p to ensure truthfulness, and conclude that these schemes work only for moderate class sizes, up to a few hundred students. To overcome this limitation, we propose a hierarchical extension of this supervised scheme, and we show that it can handle classes of any size with bounded (and little) instructor work, and is therefore applicable to Massive Open Online Courses (MOOCs). Finally, we propose unsupervised incentive schemes, in which the student incentive is based on statistical properties of the grade distribution, without any grading required by the instructor. We show that the proposed unsupervised schemes provide incentives to truthful grading, at the price of being possibly unfair to individual students.
The model described in @cite_1 considers a scenario of rational buyers who report on the quality of products of different types. In the developed payment mechanism the strategy of honest reporting is the only Nash equilibrium. However, the model requires that the prior distribution over product types and condition distributions of qualities is the common knowledge. Such assumptions do not hold in our peer review setting.
@cite_1
1506509256 2084685902 2109741490 1599913669
We commonly use the experience of others when taking decisions. Reputation mechanisms aggregate in a formal way the feedback collected from peers and compute the reputation of products, services, or providers. The success of reputation mechanisms is however conditioned on obtaining true feedback. Side-payments (i.e. agents get paid for submitting feedback) can make honest reporting rational (i.e. Nash equilibrium). Unfortunately, known schemes also have other Nash equilibria that imply lying. In this paper we analyze the equilibria of two incentive-compatible reputation mechanisms and investigate how undesired equilibrium points can be eliminated by using trusted reports. We revisit the classic problem of fair division from a mechanism design perspective and provide an elegant truthful mechanism that yields surprisingly good approximation guarantees for the widely used solution of Proportional Fairness. This solution, which is closely related to Nash bargaining and the competitive equilibrium, is known to be not implementable in a truthful fashion, which has been its main drawback. To alleviate this issue, we propose a new mechanism, which we call the Partial Allocation mechanism, that discards a carefully chosen fraction of the allocated resources in order to incentivize the agents to be truthful in reporting their valuations. This mechanism introduces a way to implement interesting truthful outcomes in settings where monetary payments are not an option. For a multi-dimensional domain with an arbitrary number of agents and items, and for the very large class of homogeneous valuation functions, we prove that our mechanism provides every agent with at least a 1 e ≈ 0.368 fraction of her Proportionally Fair valuation. To the best of our knowledge, this is the first result that gives a constant factor approximation to every agent for the Proportionally Fair solution. To complement this result, we show that no truthful mechanism can guarantee more than 0.5 approximation, even for the restricted class of additive linear valuations. In addition to this, we uncover a connection between the Partial Allocation mechanism and VCG-based mechanism design. We also ask whether better approximation ratios are possible in more restricted settings. In particular, motivated by the massive privatization auction in the Czech republic in the early 90s we provide another mechanism for additive linear valuations that works really well when all the items are highly demanded. We consider the problem of a monopolist seller who wants to sell some items to a set of buyers. The buyers are strategic, unit-demand, and connected by a social network. Furthermore, the utility of a buyer is a decreasing function of the number of neighbors who do not own the item. In other words, they exhibit negative externalities, deriving utility from being unique in their purchases. In this model, any fixed setting of the price induces a sub-game on the buyers. We show that it is an exact potential game which admits multiple pure Nash Equilibria. A natural problem is to compute those pure Nash equilibria that raise the most and least revenue for the seller. These correspond respectively to the most optimistic and most pessimistic revenues that can be raised. We show that the revenues of both the best and worst equilibria are hard to approximate within sub-polynomial factors. Given this hardness, we consider a relaxed notion of pricing, where the price for the same item can vary within a constant factor for different buyers. We show a 4-approximation to the pessimistic revenue when the prices are relaxed by a factor of 4. The interesting aspect of this algorithm is that it uses a linear programming relaxation that only encodes part of the strategic behavior of the buyers in its constraints, and rounds this relaxation to obtain a starting configuration for performing relaxed Nash dynamics. Finally, for the maximum revenue Nash equilibrium, we show a 2-approximation for bipartite graphs (without price relaxation), and complement this result by showing that the problem is NP-Hard even on trees. There are many situations in which a customer's proclivity to buy the product of any firm depends not only on the classical attributes of the product such as its price and quality, but also on who else is buying the same product. We model these situations as games in which firms compete for customers located in a “social network”. Nash Equilibrium (NE) in pure strategies exist and are unique. Indeed there are closed-form formulae for the NE in terms of the exogenous parameters of the model, which enables us to compute NE in polynomial time. An important structural feature of NE is that, if there are no a priori biases between customers and firms, then there is a cut-off level above which high cost firms are blockaded at an NE, while the rest compete uniformly throughout the network. We finally explore the relation between the connectivity of a customer and the money firms spend on him. This relation becomes particularly transparent when externalities are dominant: NE can be characterized in terms of the invariant measures on the recurrent classes of the Markov chain underlying the social network.