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There has been substantial recent concern that automated pricing algorithms might learn to collude Supra-competitive prices can emerge as a Nash equilibrium of repeated pricing games, in which sellers play strategies which threaten to punish their competitors if they ever defect from a set of supra-competitive prices, and these strategies can be automatically learned. But threats are anti-competitive on their face. In fact, a standard economic intuition is that supra-competitive prices emerge from either the use of threats, or a failure of one party to correctly optimize their payoff. Is this intuition correct? Would explicitly preventing threats in algorithmic decision-making prevent supra-competitive prices when sellers are optimizing for their own revenue? No. We show that supra-competitive prices can robustly emerge even when both players are using algorithms which do not explicitly encode threats, and which optimize for their own revenue. Since deploying an algorithm is a form of commitment, we study sequential Bertrand pricing games (and a continuous variant) in which a first mover deploys an algorithm and then a second mover optimizes within the resulting environment. We show that if the first mover deploys any algorithm with a no-regret guarantee, and then the second mover even approximately optimizes within this now static environment, monopoly-like prices arise. The result holds for any no-regret learning algorithm deployed by the first mover and for any pricing policy of the second mover that obtains them profit at least as high as a random pricing would - and hence the result applies even when the second mover is optimizing only within a space of non-responsive pricing distributions which are incapable of encoding threats. In fact, there exists a set of strategies, neither of which explicitly encode threats that form a Nash equilibrium of the simultaneous pricing game in algorithm space, and lead to near monopoly prices. This suggests that the definition of algorithmic collusion; may need to be expanded, to include strategies without explicitly encoded threats. 

We study the problem of online prediction, in which at each time step t, an individual xt arrives, whose label we must predict. Each individual is associated with various groups, defined based on their features such as age, sex, race etc., which may intersect. Our goal is to make predictions that have regret guarantees not just overall but also simultaneously on each sub-sequence comprised of the members of any single group. Previous work such as [Blum & Lykouris] and [Lee et al] provide attractive regret guarantees for these problems; however, these are computationally intractable on large model classes. We show that a simple modification of the sleeping experts technique of [Blum & Lykouris] yields an efficient reduction to the well-understood problem of obtaining diminishing external regret absent group considerations. Our approach gives similar regret guarantees compared to [Blum & Lykouris]; however, we run in time linear in the number of groups, and are oracle-efficient in the hypothesis class. This in particular implies that our algorithm is efficient whenever the number of groups is polynomially bounded and the external-regret problem can be solved efficiently, an improvement on [Blum & Lykouris]'s stronger condition that the model class must be small. Our approach can handle online linear regression and online combinatorial optimization problems like online shortest paths. Beyond providing theoretical regret bounds, we evaluate this algorithm with an extensive set of experiments on synthetic data and on two real data sets -- Medical costs and the Adult income dataset, both instantiated with intersecting groups defined in terms of race, sex, and other demographic characteristics. We find that uniformly across groups, our algorithm gives substantial error improvements compared to running a standard online linear regression algorithm with no groupwise regret guarantees. 

We present a stylized model with feedback loops for the evolution of a population's wealth over generations. Individuals have both talent and wealth: talent is a random variable distributed identically for everyone, but wealth is a random variable that is dependent on the population one is born into. Individuals then apply to a downstream agent, which we treat as a university throughout the paper (but could also represent an employer) who makes a decision about whether to admit them or not. The university does not directly observe talent or wealth, but rather a signal (representing e.g. a standardized test) that is a convex combination of both. The university knows the distributions from which an individual's type and wealth are drawn, and makes its decisions based on the posterior distribution of the applicant's characteristics conditional on their population and signal. Each population's wealth distribution at the next round then depends on the fraction of that population that was admitted by the university at the previous round. We study wealth dynamics in this model, and give conditions under which the dynamics have a single attracting fixed point (which implies population wealth inequality is transitory), and conditions under which it can have multiple attracting fixed points (which implies that population wealth inequality can be persistent). In the case in which there are multiple attracting fixed points, we study interventions aimed at eliminating or mitigating inequality, including increasing the capacity of the university to admit more people, aligning the signal generated by individuals with the preferences of the university, and making direct monetary transfers to the less wealthy population. 

xisting network switches implement scheduling disciplines such as FIFO or deficit round robin that provide good utilization or fairness across flows, but do so at the expense of leaking a variety of information via timing side channels. To address this privacy breach, we propose a new scheduling mechanism for switches called indifferent-first scheduling (IFS). A salient aspect of IFS is that it provides privacy (a notion of strong isolation) to clients that opt-in, while preserving the (good) performance and utilization of FIFO or round robin for clients that are satisfied with the status quo. Such a hybrid scheduling mechanism addresses the main drawback of prior proposals such as time-division multiple access (TDMA) that provide strong isolation at the cost of low utilization and increased packet latency for all clients. We identify limitations of modern programmable switches which inhibit an implementation of IFS without compromising its privacy guarantees, and show that a version of IFS with full security can be implemented at line rate in the recently proposed push-in-first-out (PIFO) queuing architecture. 

We introduce the \emph{pipeline intervention} problem, defined by a layered directed acyclic graph and a set of stochastic matrices governing transitions between successive layers. The graph is a stylized model for how people from different populations are presented opportunities, eventually leading to some reward. In our model, individuals are born into an initial position (i.e. some node in the first layer of the graph) according to a fixed probability distribution, and then stochastically progress through the graph according to the transition matrices, until they reach a node in the final layer of the graph; each node in the final layer has a \emph{reward} associated with it. The pipeline intervention problem asks how to best make costly changes to the transition matrices governing people's stochastic transitions through the graph, subject to a budget constraint. We consider two objectives: social welfare maximization, and a fairness-motivated maximin objective that seeks to maximize the value to the population (starting node) with the \emph{least} expected value. We consider two variants of the maximin objective that turn out to be distinct, depending on whether we demand a deterministic solution or allow randomization. For each objective, we give an efficient approximation algorithm (an additive FPTAS) for constant width networks. We also tightly characterize the "price of fairness" in our setting: the ratio between the highest achievable social welfare and the highest social welfare consistent with a maximin optimal solution. Finally we show that for polynomial width networks, even approximating the maximin objective to any constant factor is NP hard, even for networks with constant depth. This shows that the restriction on the width in our positive results is essential. 

This paper introduces a new cryptographic primitive called a private resource allocator (PRA) that can be used to allocate resources (e.g., network bandwidth, CPUs) to a set of clients without revealing to the clients whether any other clients received resources. We give several constructions of PRAs that provide guarantees ranging from information-theoretic to differential privacy. PRAs are useful in preventing a new class of attacks that we call allocation-based side-channel attacks. These attacks can be used, for example, to break the privacy guarantees of anonymous messaging systems that were designed specifically to defend against side-channel and traffic analysis attacks. Our implementation of PRAs in Alpenhorn, which is a recent anonymous messaging system, shows that PRAs increase the network resources required to start a conversation by up to 16× (can be made as low as 4×in some cases), but add no overhead once the conversation has been established.