Lecture5:Social Network Analysis-By Dr. Y. Narahari

87
E-Commerce Lab, CSA, IISc 1 Game Theoretic Models for Social Network Analysis Y. NARAHARI April 29, 2011 SILVER JUBILEE OF CS DEPARTMENT, MYSORE UNIVERSITY 150 th BIRTH ANNIVERSARY OF SIR M. VISVESWARAYA E-Commerce Laboratory Computer Science and Automation Indian Institute of Science, Bangalore

Transcript of Lecture5:Social Network Analysis-By Dr. Y. Narahari

Page 1: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc1

Game Theoretic Models for Social Network AnalysisY. NARAHARI

April 29, 2011SILVER JUBILEE OF CS DEPARTMENT, MYSORE

UNIVERSITY

150th BIRTH ANNIVERSARY OF SIR M. VISVESWARAYA

E-Commerce Laboratory

Computer Science and AutomationIndian Institute of Science, Bangalore

Page 2: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc2

OUTLINE

PART 1: SNA: What, Why, and How?

PART 2: Introduction to Relevant Game Theory

PART 3: Community Detection using Nash Equilibrium

PART 4: Discovering Influential NodesUsing Shapley Value

PART 5: Social Network MonitizationUsing Mechanism Design

PART 7: Conclusions, Promising Directions

Page 3: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc3

Today’s Talk is a Tribute to

John von Neumann The Genius who created two intellectual currents in the 1930s, 1940s

Founded Game Theory with Oskar Morgenstern (1928-44)

Pioneered the Concept of a Digital Computer and Algorithms (1930s and 40s)

Page 4: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc4

CENTRAL IDEA

Ramasuri Narayanam. Game Theoretic Models for Social Network Analysis, Ph.D. Dissertation, CSA, IISc, November 2010

Game Theoretic Modelsare very natural for

modeling social networks--------------------------------------Social network nodes are

rational, intelligent--------------------------------------Social networks form in a

decentralized way--------------------------------------

Strategic interactions among social network nodes

---------------------------------------

It would be interestingto explore

Game Theoretic Models for analyzing social networks --------------------------------------

Example 1: DiscoveringCommunities

--------------------------------------Example 2: FindingInfluential Nodes

---------------------------------------Example 3: Monitizing

Social Networks

Page 5: Lecture5:Social Network Analysis-By Dr. Y. Narahari

A Social Structure made up of nodes (Individuals or Organizations or Social Entities) that are tied by one or more specific types of relationships.

Social Networks are ubiquitous and have been existing from times immemorial

• Family Relationship Networks• Education Networks • Professional Networks (Scientists, Doctors, Musicians)

Social Networks have a long history – Sociologists and Psychologists have studied them extensively

Social Networks

Page 6: Lecture5:Social Network Analysis-By Dr. Y. Narahari

A Friendship Network

Credits: google images

Page 7: Lecture5:Social Network Analysis-By Dr. Y. Narahari

A Jazz Musicians Network

Credits: Dataset from MEJ Newmann Homepage

Page 8: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Terrorist Network of 9/11

Page 9: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Why Are Social Networks Important ?

Diffusion of Information and Innovations To understand spread of diseases (Epidemiology) E-Commerce and E-Business (selling patterns,

marketing) Job Finding (through referrals) Determine Influential Players (scientists, innovators,

employees, customers, companies, genes, etc.) Build effective social and political campaigns Predict future events Crack terrorist/criminal networks Track alumni, etc…

Page 10: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Social Network Analysis

Find the structure of social networks Understand the formation of social networks Discover complex communication patterns,

characteristic features Graph theory (random graphs), simulation, have

been extensively used

Social network analysis is crucial for all its applications

Page 11: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Examining the structure is a fairly formidable task because of the scale and complexity

Extensive experimental and simulation based studies have been carried out, leading to some key observations

We are interested in the What, Why, and How of the structure of social networks

Structure of Social Networks

Page 12: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Clustering and Communities

Page 13: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Small World Phenomenon(Low Diameters)

Stanley Milgram

Page 14: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Six Degrees of Freedom

Duncan J. Watts

Duncan J Watts, Six degrees: The Science of a

Connected age, 2004, W.W. Norton and Company

Duncan J Watts, Small worlds: The Dynamics of

Networks between Order and Randomness, 2003,

Princeton University Press

Page 15: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Erdos Number

Paul Erdos

Describes the collaborative

distance between an author and Paul Erdos, celebrated

and prolific mathematician who

has written 1500 papers

Page 16: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Power Law Degree DistributionSocial networks fall into the class of scale-free networks, meaning that they have power-law (or scale-free) degree

distributions.

kdP

kdP

cddP

same the is )(

)(

)(

Page 17: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Question: Do we have analytical models that explain the unique characteristics of social networks satisfactorily?

Such models will be useful in many ways: - understand information diffusion - predict future events - determine influential players - build effective social campaigns

Models of Social Network Formation

Page 18: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Provide a natural model for analysis of networks that form when links are chosen by agents- game theory can model choice; random graphs only model chance

Appropriate because the agents in a social network are rational and intelligent - strategic actors who are discreet in choosing the relationships

Game Theoretic Models

Page 19: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc19

Game Theory

Mathematical framework for rigorous study of conflict and cooperation among rational, intelligent agents

Market

Buying Agents (rational and intelligent)

Selling Agents (rational and intelligent)

Social Planner

In the Internet Era, Game Theory has become a valuable tool for analysis and design

Page 20: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc20

Microeconomics, Sociology, Evolutionary Biology

Auctions and Market Design: Spectrum Auctions, Procurement Markets, Double Auctions

Industrial Engineering, Supply Chain Management, E-Commerce, Resource Allocation

CS: Algorithmic Game Theory, Internet and Network Economics, Protocol Design, etc.

---------------------------------------------------------------------There has been a surge of interest in applying

Game Theory to SNA and KDD Problems

Applications of Game Theory

Page 21: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc21

GAME THEORY IN SNA: TWO VIEWPOINTS

Game Theoretic Modelsare very natural for

many SNA problems (Rationality of Internet Users)

--------------------------------------Example 1: Social Network

Formation--------------------------------------

Example 2: Modeling Incentives

---------------------------------------Example 3: ExtractingKnowledge Accurately

Game Theoretic SolutionConcepts Lead to

More Efficient Algorithms --------------------------------------

Example 1: MiningInfluential Nodes

--------------------------------------Example 2: Clustering

Large Data Sets---------------------------------------

Example 3: DiscoveringCommunities

Page 22: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc22

Strategic Form Games (Normal Form Games)

S1

Sn

U1 : S R

Un : S R

N = {1,…,n}

Players

S1, … , Sn

Strategy Sets

S = S1 X … X Sn

Payoff functions

(Utility functions)

Page 23: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc23

Example 1: Coordination Game

B

A

IISc MG Road

IISc 100,100 0,0

MG Road 0,0 10,10

Models the strategic conflict when two players have to choose their priorities

Page 24: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc24

Example 2: Prisoner’s Dilemma

No Confess

NCConfess

C

No Confess

NC - 2, - 2 - 10, - 1

Confess

C -1, - 10 - 5, - 5

Page 25: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc25

Pure Strategy Nash Equilibrium

A profile of strategies is said to be

a pure strategy Nash Equilibrium if is a best

response strategy against *is ni ,...,2,1

**2

*1 ,...,, nsss

*is

A Nash equilibrium profile is robust to unilateral deviations and captures a stable, self-enforcing

agreement among the players

Page 26: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc26

Nash Equilibria in Coordination Game

B

A

IISc MG Road

IISc 100,100 0,0

MG Road 0,0 10,10

Two pure strategy Nash equilibria: (IISc, IISc) and (MG Road, MG Road);

one mixed strategy Nash equilibrium

Page 27: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc27

Nash Equilibrium in Prisoner’s Dilemma

No Confess

NCConfess

C

No Confess

NC - 2, - 2 - 10, - 1

Confess

C -1, - 10 - 5, - 5

(C,C) is a Nash equilibrium

Page 28: Lecture5:Social Network Analysis-By Dr. Y. Narahari

45C

2

45

x/100

x/100

B

D

A

SourceDestination

Example 3: Traffic Routing Game

N = {1,…,n}; S1 = S2 = … = Sn = {C,D}

Page 29: Lecture5:Social Network Analysis-By Dr. Y. Narahari

45C

2

45

x/100

x/100

B

D

A

SourceDestination

Traffic Routing Game: Nash Equilibrium

Assume n = 4000

U1 (C,C, …, C) = - (40 + 45) = - 85

U1 (D,D, …, D) = - (45 + 40) = - 85

U1 (D,C, …, C) = - (45 + 0.01) = - 45.01

U1 (C, …,C;D, …,D) = - (20 + 45) = - 65

Any Strategy Profilewith 2000 C’s and 2000 D’s is a Nash Equilibrium

Page 30: Lecture5:Social Network Analysis-By Dr. Y. Narahari

45C

2

45

x/100

x/100

B

D

A

SourceDestination

Traffic Routing Game: Braess’ Paradox

Assume n = 4000

S1 = S2 = … = Sn = {C,CD, D}

U1 (CD,CD, …, CD) = - (40+0+40) = - 80

U1 (C,CD, …, CD) = - (40+45) = - 85

U1 (D,CD, …, CD) = - (45+40) = - 85

Strategy Profile with 4000 CD’s is the uniqueNash Equilibrium

0

Page 31: Lecture5:Social Network Analysis-By Dr. Y. Narahari

21

Example 4: Network Formation

21

21

21

N = {1,2} ; S1 = {null, 2}; S2 = {null, 1}

s1 = s2 = nullU1 = 0; U2 = 0NE if b <= c

s1 = 2; s2 = nullU1 = b - c; U2 = 0NE if b = c

s1 = null; s2 = 1U1 = 0; U2 = b - c NE if b = c

s1 = 2; s2 = 1U1 = b - c; U2 = b – cNE if b >= c

Page 32: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc32

Mixed strategy of a player ‘i’ is a probability distribution on Si .

is a mixed strategy Nash equilibrium if

is a best response against ,

Nash’s Theorem

Every finite strategic form game has at least one mixed strategy Nash

equilibrium

*i *

i

**2

*1 ,...,, n

ni ,...,2,1

Page 33: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc33

Relevance/Implications of Nash Equilibrium

Players are happy the way they are;Do not want to

deviate unilaterally

Stable, self-enforcing,self-sustaining

agreement

Provides a principled way of predicting a

steady-state outcome of a dynamic

Adjustment process

Need not correspondto a socially optimal or

Pareto optimalsolution

Page 34: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Community Detection using Nash Stable Partitions

Page 35: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc35

Community Detection Problem

• Discover natural components such that connections within a component are dense and across components are sparse

• Important for social campaigns, viral marketing, search, and a variety of applications

• Extensively investigated problem

• Communities could be overlapping or non-overlapping. We are interested in non-overlapping communities.

Page 36: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc36

Community Detection: Relevant WorkOptimization based approaches using global

objective based on centrality based measuresMEJ Newman. Detecting Community Structure in Networks.

European Physics Journal. 2004.

Spectral methods, Eigen vector based methodsMEJ Newman. Finding community structure in networks using eigen vectors,

Physical Review-E, 2006

Multi-level ApproachesB. Hendrickson and R. Leland. A multi-level algorithm for partitioning graphs.

1993.

State-of-the-Art ReviewJ. Lescovec et al. Empirical comparison of algorithms for community detection.

WWW 2010

Page 37: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc37

Existing Algorithms for Community Detection: A Few Issues

Most of these work with a global objective such asmodularity, conductance, etc.

Do not take into account the strategic natureof the players and their associations

Invariably require the number of communitiesTo be provided as an input to the algorithm

Page 38: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc38

Our Approach

We use a strategic form game to model theformation of communities

We view detection of non-overlapping communitiesas a graph partitioning problem and set up a

graph partitioning game

Only relevant existing workW. Chen et al. A game theoretic framework to identify overlapping

Communities in social networks. DMKD, 2010.

Page 39: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc39

Community Detection and Graph Partitioning

•Non-overlapping community detection can be viewed as a graph partitioning problem

Page 40: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc40

Graph Partitioning: Applications

1. VLSI circuit design2. Resource allocation in parallel computing3.Graph visualization and summarization4.Epidemiology5.Social Network Analysis

Page 41: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc41

Email Network – Visualization and Summarization

Page 42: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc42

Graph Partitioning Game

Nodes in the network are the players Strategy of a node is to choose its community Utilities to be defined to reflect the network structure and the problem setting; preferably should use only local information

Page 43: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc43

Proposed Utility Function

Ui (S) is the sum of number of neighbours of node iin the community plus a normalized value of the

neighbours who are themselves connected

The proposed utility function captures theDegree of connectivity of the node and also the

density of its neighbourhood

A Nash Stable Partition is one in which no node has incentive to defect to any other community

Page 44: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc44

Nash Stable Partition: An Example

u1(S1) = 3; u1(S2) = 0;

u2(S1) = 8; u2(S2) = 0;

u3(S1) = 8; u3(S2) = 0;

u4(S1) = 6; u4(S2) = 0;

u5(S1) = 7; u5(S2) = 1;

u6(S1) = 1; u6(S2) = 1;

u7(S2) = 7; u7(S1) = 3;

u8(S2) = 6; u8(S1) = 0;

u9(S2) = 8; u9(S1) = 0;

u10(S2) = 8; u10(S1) = 0;

u11(S2) = 3; u11(S1) = 0;

Page 45: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc45

SCoDA: Stable Community Detection Algorithm

Start with an initial partition where each community hasa small number of nodes

Choose nodes in a non-decreasing order of degreesand investigate if it is better to defect to a neighbouring

community

The algorithm terminates in a Nash stable partition

Page 46: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc46

Comparison of SCoDA with other Algorithms

Girvan and Newman M Girvan and MEJ Newman. PNAS 2002

Greedy AlgorithmMEJ Newman. Physical Review E, 2004

Spectral AlgorithmMEJ Newman. PNAS 2006

RGT AlgorithmW. Chen et al. DMKD, 2010

Page 47: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc47

Performace Metrics

COVERAGEFraction of edges which are of intra-community type

MODULARITYNormalized fraction of difference of intra-community edges

In the given graph and a random graph

Page 48: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc48

DATASETS

Data Set Nodes Edges Triangles

Karate 34 78 45Dolphins 62 318 95Les Miserables 77 508 467Political Books 105 882 560Football 115 1226 810Jazz Musicians 198 274 17899Email 1133 5451 10687Yeast 2361 6913 5999

Page 49: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc49

SOME INSIGHTS

SCoDA has comparable computational complexityand running time

SCoDA maintains a good balance betweenCoverage and modularity

SCoDA uses only local information

Game theory helps solve certain KDD problems withIncomplete information

Page 50: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc50

POSSIBLE EXTENSIONS

Extend to weighted graphs, directed graphs,overlapping communities

There could be multiple Nash stablePartitions – choosing the best one is

highly non-trivial

Page 51: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Discovering Influential Nodes using Shapley Value

Page 52: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc52

Solution Concepts in Cooperative Game Theory

Solution Concepts in Non-cooperative Game Theory Nash Equilibrium, Strong Nash Equilibrium

Dominant Strategy EquilibriumSubgame Perfect Equilibrium, etc.

Solution Concepts in Cooperative Game Theory The Core

Shapley Value, Myerson Value,The Kernel, Nucleolus, etc.

Page 53: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Cooperative Game with Transferable Utilities

coalitions possible 12 are There

. a called is

0)( 2:

},...,2,1{

),(

||

N

N

NC

vv

nN

vNT

coalition

; functionsticcharacteri

players of set

Page 54: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Divide the Dollar GameThere are three players who have to share 300 dollars. Each one proposes a particular allocation of dollars to

players.

}300

;0;0;0:),,{(

}3,2,1{

321

3213

321321

xxx

xxxxxxSSS

N

Page 55: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Divide the Dollar : Version 1

The allocation is decided by what is proposed by player 0

Characteristic Function

300})3,2,1({})3,1({})2,1({

0})3,2({})3({})2({

300})1({

vvv

vvv

v

otherwise 0

),,( if ),,( 3211321

xxxsxsssu ii

Page 56: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Divide the Dollar : Version 2

It is enough 1 and 2 propose the same allocation

Players 1 and 2 are equally powerful; Characteristic Function is:

300})3,2,1({

0})3,2({})3,1({

300})2,1({

0})3({})2({})1({

v

vv

v

vvv

otherwise 0

),,( if ),,( 32121321

xxxssxsssu ii

Page 57: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Divide the Dollar : Version 3

Either 1 and 2 should propose the same allocation or 1 and 3

should propose the same allocation

Characteristic Function

300})3,2,1({})3,1({})2,1({

0})3,2({})3({})2({})1({

vvv

vvvv

otherwise 0

),,(or ),,( if ),,( 3213132121321

xxxssxxxssxsssu ii

Page 58: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Divide the Dollar : Version 4

It is enough any pair of players has the same proposal

Also called the Majority Voting Game

Characteristic Function

300})3,2,1({})3,2({})3,1({})2,1({

0})3({})2({})1({

vvvv

vvv

otherwise 0

),,(or

),,(or

),,( if ),,(

32132

32131

32121321

xxxss

xxxss

xxxssxsssu ii

Page 59: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Shapley Value of a Cooperative Game

Captures how competitive forces influence the outcomes of a game

Describes a reasonable and fair way of dividing the gains from cooperation given the strategic realities

Shapley value of a player finds its average marginal contribution across all permutation orderings

Unique solution concept that satisfies symmetry, preservation of carrier, additivity, and Pareto optimality

E-Commerce Lab, CSA, IISc59

Lloyd Shapley

Page 60: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Shapley Value : A Fair Allocation Scheme

Provides a unique payoff allocation that describes a fair way

of dividing the gains of cooperation in a game (N, v)

iNCi

n

CviCvN

CNCv

vvv

)}(}){({|!|

)!1|||(||!|)(

))(),...,(()( 0

where

Page 61: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Shapley Value: Examples

Version of Divide-the-Dollar Shapley Value

Version 1

Version 2

Version 3

Version 4

(150, 150, 0)

(300, 0, 0)

(200, 50, 50)

(100, 100, 100)

Page 62: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Example: Information Diffusion Game

• Consider each individual node in the social network as a player n nodes n players

• Assume that the influence probabilities are known.

• For each subset C of N that is chosen as a target set, define

v(C) = Expected number of active nodes at the end of the

information diffusion process

• The Shapley value of a player now gives the marginal contribution of the player to the information diffusion activity

E-Commerce Lab, CSA, IISc62

Page 63: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc63

Top-10 Influential Nodes in Jazz Musicians Data Set

Top-10 Influential Nodes in NIPS Co-authorship Network

Page 64: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Monitization of Social Networks

Page 65: Lecture5:Social Network Analysis-By Dr. Y. Narahari

DARPA Red Balloon Contest

E-Commerce Lab, CSA, IISc65

Mechanism Design Meets Computer Science, Communications of the ACM, August 2010

Page 66: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Amazon Mechanical Turk

A Plea to Amazon: Fix Mechanical Turk! Noam Nisan’s Blog – October 21, 2010

Page 67: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc67

Mechanism Design

Game Theory involves analysis of games – computing equilibria and

analyzing equilibrium behaviour

Mechanism Design is the design of games orreverse engineering of games; could be called

Game Engineering

Involves inducing a game among the players such that in some equilibrium of the game,

a desired social choice function is implemented

Page 68: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc68

Page 69: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Mechanism Design: Example 1 Fair Division of a Cake

MotherSocial PlannerMechanism Designer

Kid 1Rational and Intelligent

Kid 2Rational and Intelligent

Page 70: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Mechanism Design: Example 2 Truth Elicitation through an Indirect Mechanism

Tenali Rama(Birbal)Mechanism Designer

Mother 1Rational and Intelligent Player

Mother 2Rational and Intelligent Player

Baby

Page 71: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc71

William Vickrey(1914 – 1996 )

Nobel Prize: 1996

Winner = Winner = 4 Price = 4 Price =

6060

11

22

33

44

4400445566008800

BuyersBuyers

11

Mechanism Design: Example 3 Vickrey Auction

Page 72: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc72

Vickrey-Clarke-Groves (VCG) Mechanisms

Only mechanisms under a quasi-linear setting satisfyingAllocative Efficiency

Dominant Strategy Incentive Compatibility

Vickrey Clarke Groves

Page 73: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc73

Robert AumannNobel 2005

Recent Excitement : Nobel Prizes for Game Theory and Mechanism Design

The Nobel Prize was awarded to two Game Theorists in 2005

The prize was awarded to three mechanism designers in 2007 Thomas Schelling

Nobel 2005

Leonid HurwiczNobel 2007

Eric MaskinNobel 2007

Roger MyersonNobel 2007

Page 74: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc74

PROPERTIES OF SOCIAL CHOICE FUNCTIONS

DSIC (Dominant Strategy

Incentive Compatibility)Reporting Truth is always good

BIC (Bayesian NashIncentive Compatibility)

Reporting truth is good wheneverothers also report truth

AE (Allocative Efficiency)Allocate items to those who

value them most

BB (Budget Balance)Payments balance receipts and

No losses are incurred

Non-DictatorshipNo single agent is favoured all

the time

Individual RationalityPlayers participate voluntarilysince they do not incur losses

Page 75: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc75

POSSIBILITIES AND IMPOSSIBILITIES - 1

Gibbard-Satterthwaite Theorem When the preference structure is rich,

a social choice function is DSIC iff it is dictatorial

Groves TheoremIn the quasi-linear environment, there exist social

choice functions which are both AE and DSIC

The dAGVA TheoremIn the quasi-linear environment, there exist social

choice functions which are AE, BB, and BIC

Page 76: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc76

POSSIBILITIES AND IMPOSSIBILITIES -2

Green- Laffont TheoremWhen the preference structure is rich, a social

choice function cannot be DSIC and BB and AE

Myerson-Satterthwaite TheoremIn the quasi-linear environment, there cannot exist

a social choice function that isBIC and BB and AE and IR

Myerson’s Optimal MechanismsOptimal mechanisms are possible subject to

IIR and BIC (sometimes even DSIC)

Page 77: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc77

BIC

AE

WBB

IR

SBB

dAGVA

DSIC

EPE

GROVES MYERSON

VDOPT

SSAOPT CBOPT

MECHANISM DESIGN SPACE

Page 78: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc78

Mechanism Design for Social Networks

Social Network Monitization (QA Networks,Query Incentive Networks)

Virus Inoculation Strategies

Crowdsourcing Mechanisms,Mechanical Turk Marketplaces

Page 79: Lecture5:Social Network Analysis-By Dr. Y. Narahari

CONCLUDINGREMARKS

Page 80: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc80

SOME FACTS

Game Theory captures many phenomena in SNA in a natural way and leads to better insights

Many game theory solution concepts (Nash equilibrium, Shapley value, Core, etc.)

have good relevance

The game theoretic approach leads toefficient algorithms in some contexts

Game theory helps solve certain SNA problems withincomplete information

Page 81: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc81

SOME MYTHS

Game theory is a panacea for solving SNA problems

Game theory makes all SNA algorithms much more efficient

Game Theory provides a complete alternative toSNA problem solving

Page 82: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc82

SOME CHALLENGES

Game theory computations are among the hardest;For example, computing NE of even 2 player games

is not even NP-hard!

Deciding when to use a game theoretic approach and mapping the given SNA problem into a

suitable game could be non-trivial

Page 83: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc83

SOME PROMISING DIRECTIONS

Designing scalable approximation algorithmswith worst case guarantees

Explore numerous solution concepts availablein the ocean of game theory literature

Exploit games with special structure such asconvex games, potential games, matrix games, etc.

Problems such as incentive compatiblelearning and social network monitization are at

the cutting edge

Page 84: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc84

SUMMARY

Game Theory imparts more power, moreefficiency, more naturalness, and more glamour

To social network analysis

Sensational new algorithms for SNA problems ?Still a long way to go but the potential is good.

Calls for a much deeper study

Page 85: Lecture5:Social Network Analysis-By Dr. Y. Narahari

Game Theory in SNA is now an Active Area with plenty of promising problems

Matthew O. Jackson. Social and Economic Networks. Princeton University Press, 2008.

Sanjeev Goyal. Connections: An Introduction to the Economics of Networks. Princeton University Press. 2007.

David Easley and Jon Kleinberg. Networks, Crowds, and Markets, Cambridge University Press, 2010

Ramasuri Narayanam, Game Theoretic Models for Social Network Analysis

Page 86: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc86

BEST WISHES TO CS@MysoreUniv

Silver Jubilee is a significant milestone;Question to Ask: Are we in the Top 25 in the World?

IISc CS : Currently we are in 76-100. Our targetis to break into Top 25 in the next 5 years

A good target for CS@MysoreUniv will be to break into top 25 in the world in the next decade

and give IISc a run for its money!

Page 87: Lecture5:Social Network Analysis-By Dr. Y. Narahari

E-Commerce Lab, CSA, IISc87

Questions and Answers …

Thank You …