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Collaboration is crucial for reaching collective goals. However, its effectiveness is often undermined by the strategic behavior of individual agents -- a fact that is captured by a high Price of Stability (PoS) in recent literature [Blum et al., 2021]. Implicit in the traditional PoS analysis is the assumption that agents have full knowledge of how their tasks relate to one another. We offer a new perspective on bringing about efficient collaboration among strategic agents using information design. Inspired by the growing importance of collaboration in machine learning (such as platforms for collaborative federated learning and data cooperatives), we propose a framework where the platform has more information about how the agents' tasks relate to each other than the agents themselves. We characterize how and to what degree such platforms can leverage their information advantage to steer strategic agents toward efficient collaboration. Concretely, we consider collaboration networks where each node is a task type held by one agent, and each task benefits from contributions made in their inclusive neighborhood of tasks. This network structure is known to the agents and the platform, but only the platform knows each agent's real location -- from the agents' perspective, their location is determined by a random permutation. We employ private Bayesian persuasion and design two families of persuasive signaling schemes that the platform can use to ensure a small total workload when agents follow the signal. The first family aims to achieve the minmax optimal approximation ratio compared to the optimal collaboration, which is shown to be Θ(n‾√) for unit-weight graphs, Θ(n2/3) for graphs with constant minimum edge weights, and O(n3/4) for general weighted graphs. The second family ensures per-instance strict improvement compared to full information disclosure.
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Counterfactuals with Latent Information
We describe a methodology for making counterfactual predictions in settings where the information held by strategic agents and the distribution of payoff-relevant states of the world are unknown. The analyst observes behavior assumed to be rationalized by a Bayesian model, in which agents maximize expected utility, given partial and differential information about the state. A counterfactual prediction is desired about behavior in another strategic setting, under the hypothesis that the distribution of the state and agents’ information about the state are held fixed. When the data and the desired counterfactual prediction pertain to environments with finitely many states, players, and actions, the counterfactual prediction is described by finitely many linear inequalities, even though the latent parameter, the information structure, is infinite dimensional. (JEL D44, D82, D83)
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- Award ID(s):
- 2049754
- PAR ID:
- 10337509
- Date Published:
- Journal Name:
- American Economic Review
- Volume:
- 112
- Issue:
- 1
- ISSN:
- 0002-8282
- Page Range / eLocation ID:
- 343 to 368
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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Collaboration is crucial for reaching collective goals. However, its effectiveness is often undermined by the strategic behavior of individual agents -- a fact that is captured by a high Price of Stability (PoS) in recent literature [Blum et al., 2021]. Implicit in the traditional PoS analysis is the assumption that agents have full knowledge of how their tasks relate to one another. We offer a new perspective on bringing about efficient collaboration among strategic agents using information design. Inspired by the growing importance of collaboration in machine learning (such as platforms for collaborative federated learning and data cooperatives), we propose a framework where the platform has more information about how the agents' tasks relate to each other than the agents themselves. We characterize how and to what degree such platforms can leverage their information advantage to steer strategic agents toward efficient collaboration. Concretely, we consider collaboration networks where each node is a task type held by one agent, and each task benefits from contributions made in their inclusive neighborhood of tasks. This network structure is known to the agents and the platform, but only the platform knows each agent's real location -- from the agents' perspective, their location is determined by a random permutation. We employ private Bayesian persuasion and design two families of persuasive signaling schemes that the platform can use to ensure a small total workload when agents follow the signal. The first family aims to achieve the minmax optimal approximation ratio compared to the optimal collaboration, which is shown to be Θ(n‾√) for unit-weight graphs, Θ(n2/3) for graphs with constant minimum edge weights, and O(n3/4) for general weighted graphs. The second family ensures per-instance strict improvement compared to full information disclosure.more » « less
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- Free Publicly Accessible Full Text
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Accepted Manuscript1.0
- Journal Article:
- https://doi.org/10.1257/aer.20210496
