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Social Network Games Krzysztof R. Apt CWI and University of Amsterdam Based on joint works with Evangelos Markakis and Sunil Simon

Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

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Page 1: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Social Network Games

Krzysztof R. Apt

CWI and University of Amsterdam

Based on joint works withEvangelos Markakis

andSunil Simon

Page 2: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Social Networks

Facebook,

Hyves,

LinkedIn,

Nasza Klasa,

. . .

Krzysztof R. Apt Social Network Games

Page 3: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

But also . . .

An area with links to

sociology (spread of patterns of social behaviour)

economics (effects of advertising, emergence of ‘bubbles’ in financialmarkets, . . .),

epidemiology (epidemics),

computer science (complexity analysis),

mathematics (graph theory).

Krzysztof R. Apt Social Network Games

Page 4: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Example

(From D. Easley and J. Kleinberg, 2010).

Collaboration of mathematicians centered on Paul Erdos.Drawing by Ron Graham.

Krzysztof R. Apt Social Network Games

Page 5: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Social networks

Essential components of our model

Finite set of agents.

Influence of “friends”.

Finite product set for each agent.

Resistance level in (threshold for) adopting a product.

Krzysztof R. Apt Social Network Games

Page 6: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Social networks

Essential components of our model

Finite set of agents.

Influence of “friends”.

Finite product set for each agent.

Resistance level in (threshold for) adopting a product.

4

1

3 2

0.4

0.5

0.3

0.6

Krzysztof R. Apt Social Network Games

Page 7: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Social networks

Essential components of our model

Finite set of agents.

Influence of “friends”.

Finite product set for each agent.

Resistance level in (threshold for) adopting a product.

4{•}

1{•, •}

3

{•, •}

2

{•, •}

0.4

0.5

0.3

0.6

Krzysztof R. Apt Social Network Games

Page 8: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Social networks

Essential components of our model

Finite set of agents.

Influence of “friends”.

Finite product set for each agent.

Resistance level in (threshold for) adopting a product.

4{•} 0.5

1 0.3{•, •}

3

{•, •}

0.2 2

{•, •}

0.4

0.4

0.5

0.3

0.6

Krzysztof R. Apt Social Network Games

Page 9: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

The model

Social network [Apt, Markakis 2011]

Weighted directed graph: G = (V ,→,w), whereV : a finite set of agents,wij ∈ (0, 1]: weight of the edge i → j .

Products: A finite set of products P.

Product assignment: P : V → 2P \ {∅};assigns to each agent a non-empty set of products.

Threshold function: θ(i , t) ∈ (0, 1], for each agent i and productt ∈ P(i).

Neighbours of node i : {j ∈ V | j → i}.

Source nodes: Agents with no neighbours.

Krzysztof R. Apt Social Network Games

Page 10: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

The associated strategic gameInteraction between agents: Each agent i can adopt a product from theset P(i) or choose not to adopt any product (t0).

Social network games

Players: Agents in the network.

Strategies: Set of strategies for player i is P(i) ∪ {t0}.

Payoff: Fix c > 0.Given a joint strategy s and an agent i ,

Krzysztof R. Apt Social Network Games

Page 11: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

The associated strategic gameInteraction between agents: Each agent i can adopt a product from theset P(i) or choose not to adopt any product (t0).

Social network games

Players: Agents in the network.

Strategies: Set of strategies for player i is P(i) ∪ {t0}.

Payoff: Fix c > 0.Given a joint strategy s and an agent i ,

◮ if i ∈ source(S), pi (s) =

{

0 if si = t0

c if si ∈ P(i)

Krzysztof R. Apt Social Network Games

Page 12: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

The associated strategic gameInteraction between agents: Each agent i can adopt a product from theset P(i) or choose not to adopt any product (t0).

Social network games

Players: Agents in the network.

Strategies: Set of strategies for player i is P(i) ∪ {t0}.

Payoff: Fix c > 0.Given a joint strategy s and an agent i ,

◮ if i ∈ source(S), pi (s) =

{

0 if si = t0

c if si ∈ P(i)

◮ if i 6∈ source(S), pi (s) =

0 if si = t0∑

j∈N ti(s)

wji − θ(i , t) if si = t, for some t ∈ P(i)

N ti (s): the set of neighbours of i who adopted in s the product t.

Krzysztof R. Apt Social Network Games

Page 13: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Example

4

{•}

1 {•, •}

3{•, •} 2 {•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Threshold is 0.3 for all the players.

P = {•, •, •}

Krzysztof R. Apt Social Network Games

Page 14: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Example

4

{•}

1 {•, •}

3{•, •} 2 {•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Threshold is 0.3 for all the players.

P = {•, •, •}

Payoff:

p4(s) = p5(s) = p6(s) = c

Krzysztof R. Apt Social Network Games

Page 15: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Example

4

{•}

1 {•, •}

3{•, •} 2 {•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Threshold is 0.3 for all the players.

P = {•, •, •}

Payoff:

p4(s) = p5(s) = p6(s) = c

p1(s) = 0.4 − 0.3 = 0.1

Krzysztof R. Apt Social Network Games

Page 16: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Example

4

{•}

1 {•, •}

3{•, •} 2 {•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Threshold is 0.3 for all the players.

P = {•, •, •}

Payoff:

p4(s) = p5(s) = p6(s) = c

p1(s) = 0.4 − 0.3 = 0.1

p2(s) = 0.5 − 0.3 = 0.2

p3(s) = 0.4 − 0.3 = 0.1

Krzysztof R. Apt Social Network Games

Page 17: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Social network games

Properties

Graphical game: The payoff for each player depends only on thechoices made by his neighbours.

Join the crowd property: The payoff of each player weakly increases ifmore players choose the same strategy.

Krzysztof R. Apt Social Network Games

Page 18: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Solution concept – Nash equilibrium

Best response

A strategy si of player i is a best response to a joint strategy s−i if for alls ′i , pi(s

′i , s−i) ≤ pi (si , s−i ).

Nash equilibrium

A strategy profile s is a Nash equilibrium if for all players i , si is the bestresponse to s−i .

Krzysztof R. Apt Social Network Games

Page 19: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Does Nash equilibrium always exist?

4

{•}

1 {•, •}

3{•, •} 2 {•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Threshold is 0.3 for all the players.

Krzysztof R. Apt Social Network Games

Page 20: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Does Nash equilibrium always exist?

4

{•}

1 {•, •}

3{•, •} 2 {•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Threshold is 0.3 for all the players.

Observation: No player has theincentive to choose t0.

Source nodes can ensure apayoff of c > 0.

Each player on the cycle canensure a payoff of at least 0.1.

Krzysztof R. Apt Social Network Games

Page 21: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Does Nash equilibrium always exist?

4

{•}

1 {•, •}

3{•, •} 2 {•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Threshold is 0.3 for all the players.

(•, •, •)

Observation: No player has theincentive to choose t0.

Source nodes can ensure apayoff of c > 0.

Each player on the cycle canensure a payoff of at least 0.1.

Krzysztof R. Apt Social Network Games

Page 22: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Does Nash equilibrium always exist?

4

{•}

1 {•, •}

3{•, •} 2 {•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Threshold is 0.3 for all the players.

Best response dynamics

(•, •, •) (•, •, •) (•, •, •)

(•, •, •)(•, •, •)(•, •, •)

Observation: No player has theincentive to choose t0.

Source nodes can ensure apayoff of c > 0.

Each player on the cycle canensure a payoff of at least 0.1.

Reason: Players keep switchingbetween the products.

Krzysztof R. Apt Social Network Games

Page 23: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Nash equilibrium

Question: Given a social network S , what is the complexity of decidingwhether G (S) has a Nash equilibrium?

Krzysztof R. Apt Social Network Games

Page 24: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Nash equilibrium

Question: Given a social network S , what is the complexity of decidingwhether G (S) has a Nash equilibrium?

Answer: NP-complete.

Krzysztof R. Apt Social Network Games

Page 25: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Nash equilibrium

Question: Given a social network S , what is the complexity of decidingwhether G (S) has a Nash equilibrium?

Answer: NP-complete.

The PARTITION problem

Input: n positive rational numbers (a1, . . . , an) such that∑

i ai = 1.

Question: Is there a set S ⊆ {1, 2, . . . , n} such that

i∈S

ai =∑

i 6∈S

ai =1

2.

Krzysztof R. Apt Social Network Games

Page 26: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

HardnessReduction: Given an instance of the PARTITION problemP = (a1, . . . , an), construct a network S(P) such that there is a solutionto P iff there is a Nash equilibrium in S(P).

Krzysztof R. Apt Social Network Games

Page 27: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

HardnessReduction: Given an instance of the PARTITION problemP = (a1, . . . , an), construct a network S(P) such that there is a solutionto P iff there is a Nash equilibrium in S(P).

4{•}

1 {•, •}

3{•, •}

2

{•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

4′ {•′}

1′ {•′, •′}

3′{•′, •′}

2′{•′, •′}

6′

{•′}

5′

{•′}

0.5

0.5

0.5

0.4

0.4 0.4

Krzysztof R. Apt Social Network Games

Page 28: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

HardnessReduction: Given an instance of the PARTITION problemP = (a1, . . . , an), construct a network S(P) such that there is a solutionto P iff there is a Nash equilibrium in S(P).

i1

{•, •′}

i2

{•, •′}

· · · in

{•, •′}

4{•}

1 {•, •}

3{•, •}

2

{•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

4′ {•′}

1′ {•′, •′}

3′{•′, •′}

2′{•′, •′}

6′

{•′}

5′

{•′}

0.5

0.5

0.5

0.4

0.4 0.4

Krzysztof R. Apt Social Network Games

Page 29: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

HardnessReduction: Given an instance of the PARTITION problemP = (a1, . . . , an), construct a network S(P) such that there is a solutionto P iff there is a Nash equilibrium in S(P).

a1

a1

i1

{•, •′}

i2

{•, •′}

· · · in

{•, •′}

4{•}

1 {•, •}

3{•, •}

2

{•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

4′ {•′}

1′ {•′, •′}

3′{•′, •′}

2′{•′, •′}

6′

{•′}

5′

{•′}

0.5

0.5

0.5

0.4

0.4 0.4

Krzysztof R. Apt Social Network Games

Page 30: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

HardnessReduction: Given an instance of the PARTITION problemP = (a1, . . . , an), construct a network S(P) such that there is a solutionto P iff there is a Nash equilibrium in S(P).

a1

a1

a2a2

i1

{•, •′}

i2

{•, •′}

· · · in

{•, •′}

4{•}

1 {•, •}

3{•, •}

2

{•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

4′ {•′}

1′ {•′, •′}

3′{•′, •′}

2′{•′, •′}

6′

{•′}

5′

{•′}

0.5

0.5

0.5

0.4

0.4 0.4

Krzysztof R. Apt Social Network Games

Page 31: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

HardnessReduction: Given an instance of the PARTITION problemP = (a1, . . . , an), construct a network S(P) such that there is a solutionto P iff there is a Nash equilibrium in S(P).

θ(4) = θ(4′) = 12 .

a1

a1

a2a2

an

an

i1

{•, •′}

i2

{•, •′}

· · · in

{•, •′}

4{•}

1 {•, •}

3{•, •}

2

{•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

4′ {•′}

1′ {•′, •′}

3′{•′, •′}

2′{•′, •′}

6′

{•′}

5′

{•′}

0.5

0.5

0.5

0.4

0.4 0.4

Krzysztof R. Apt Social Network Games

Page 32: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Nash equilibrium

Recall the network with no Nash equilibrium:

4

{•}

1 {•, •}

3{•, •}

2

{•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Theorem. If there are at most two products, then a Nash equilibriumalways exists and can be computed in polynomial time.

Krzysztof R. Apt Social Network Games

Page 33: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Nash equilibrium

4

{•}

1 {•, •}

3{•, •}

2

{•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Properties of the underlying graph:

Krzysztof R. Apt Social Network Games

Page 34: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Nash equilibrium

4

{•}

1 {•, •}

3{•, •}

2

{•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Properties of the underlying graph:

Contains a cycle.

Krzysztof R. Apt Social Network Games

Page 35: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Nash equilibrium

4

{•}

1 {•, •}

3{•, •}

2

{•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Properties of the underlying graph:

Contains a cycle.

Contains source nodes.

Krzysztof R. Apt Social Network Games

Page 36: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Nash equilibrium

4

{•}

1 {•, •}

3{•, •}

2

{•, •}

6

{•}

5

{•}

0.5

0.5

0.5

0.4

0.4 0.4

Properties of the underlying graph:

Contains a cycle.

Contains source nodes.

Question: Does Nash equilibrium always exist in social networks when theunderlying graph

is acyclic?

has no source nodes?

Krzysztof R. Apt Social Network Games

Page 37: Social Network Gameshomepages.cwi.nl/~apt/slides/hongkong13-sli.pdf · Nasza Klasa,... Krzysztof R.Apt SocialNetworkGames. Butalso... An area with links to sociology (spread of patterns

Directed acyclic graphs

A Nash equilibrium s is non-trivial if there is at least one player i suchthat si 6= t0.

Theorem. In a DAG, a non-trivial Nash equilibrium always exists.

Krzysztof R. Apt Social Network Games

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Graphs with no source nodes

1

{•, •}

3{•, •}

2

{•, •}

4

{•, •}

7{•, •}

5

{•, •}

6

{•, •}

“Circle of friends”: everyone has aneighbour.

Krzysztof R. Apt Social Network Games

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Graphs with no source nodes

1

{•, •}

3{•, •}

2

{•, •}

4

{•, •}

7{•, •}

5

{•, •}

6

{•, •}

“Circle of friends”: everyone has aneighbour.

Observation: t0 is always a Nashequilibrium.

Question: When does a non-trivial Nash equilibrium exist?

Krzysztof R. Apt Social Network Games

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Graphs with no source nodes

1

{•, •}

3{•, •}

2

{•, •}

4

{•, •}

7{•, •}

5

{•, •}

6

{•, •}

0.4

0.4

0.5

0.30.2

0.1

0.2

0.1

0.4

0.2

Threshold=0.3

Self sustaining subgraph

A subgraph Ct is self sustaining forproduct t if it is strongly connected andfor all i in Ct ,

t ∈ P(i)

j∈N (i)∩Ct

wji ≥ θ(i , t)

Krzysztof R. Apt Social Network Games

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Graphs with no source nodes

1

{•, •}

3{•, •}

2

{•, •}

4

{•, •}

7{•, •}

5

{•, •}

6

{•, •}

0.4

0.4

0.5

0.30.2

0.1

0.2

0.1

0.4

0.2

Threshold=0.3

Self sustaining subgraph

A subgraph Ct is self sustaining forproduct t if it is strongly connected andfor all i in Ct ,

t ∈ P(i)

j∈N (i)∩Ct

wji ≥ θ(i , t)

Krzysztof R. Apt Social Network Games

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Graphs with no source nodes

1

{•, •}

3{•, •}

2

{•, •}

4

{•, •}

7{•, •}

5

{•, •}

6

{•, •}

0.4

0.4

0.5

0.30.2

0.1

0.2

0.1

0.4

0.2

Threshold=0.3

Self sustaining subgraph

A subgraph Ct is self sustaining forproduct t if it is strongly connected andfor all i in Ct ,

t ∈ P(i)

j∈N (i)∩Ct

wji ≥ θ(i , t)

Theorem. There is a non-trivial Nash equilibrium iff there exists a productt and a self sustaining subgraph Ct for t.Corollary. An algorithm with a running time O(|P| · n3).

Krzysztof R. Apt Social Network Games

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Finite Improvement Property

Fix a game.

Profitable deviation: a pair (s, s ′) such that s ′ = (s ′i , s−i) for some s ′iand pi(s

′) > pi (s).

Improvement path: a maximal sequence of profitable deviations.

A game has the FIP if all improvement paths are finite.

Krzysztof R. Apt Social Network Games

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FIP

Theorem. Every two players social network game has the FIP.

A generalization

Theorem. Consider a finite two players game G such that

pi(s) := fi (si) + ai(si = s−i),where fi : Si → R, ai > 0 and

(si = s−i ) :=

{

1 if si = s−i

0 otherwise

Then G has the FIP.

Intuition: ai is a bonus for player i for coordinating with his opponent.

Krzysztof R. Apt Social Network Games

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Summary of results

arbitrary DAG simple cycle no sourcegraphs nodes

NE NP-complete always exists always exists always exists

Non-trivial NE NP-complete always exists O(|P| · n) O(|P| · n3)

Determined NE NP-complete NP-complete O(|P| · n) NP-complete

Krzysztof R. Apt Social Network Games

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Summary of results

arbitrary DAG simple cycle no sourcegraphs nodes

NE NP-complete always exists always exists always exists

Non-trivial NE NP-complete always exists O(|P| · n) O(|P| · n3)

Determined NE NP-complete NP-complete O(|P| · n) NP-complete

FIP co-NP-hard yes ? co-NP-hard

FBRP co-NP-hard yes O(|P| · n) co-NP-hard

Uniform FIP co-NP-hard yes yes co-NP-hard

Weakly acyclic co-NP-hard yes yes co-NP-hard

Krzysztof R. Apt Social Network Games

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Summary of results

arbitrary DAG simple cycle no sourcegraphs nodes

NE NP-complete always exists always exists always exists

Non-trivial NE NP-complete always exists O(|P| · n) O(|P| · n3)

Determined NE NP-complete NP-complete O(|P| · n) NP-complete

FIP co-NP-hard yes ? co-NP-hard

FBRP co-NP-hard yes O(|P| · n) co-NP-hard

Uniform FIP co-NP-hard yes yes co-NP-hard

Weakly acyclic co-NP-hard yes yes co-NP-hard

FBRP: all improvement paths, in which only best responses are used, are finite.

Uniform FIP: all improvement paths that respect a scheduler are finite.

Weakly acyclic: from every joint strategy there is a finite improvement path thatstarts at it.Krzysztof R. Apt Social Network Games

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Paradox of Choice (B. Schwartz, 2005)

[Gut Feelings, G. Gigerenzer, 2008]

The more options one has, the more possibilities for experiencing conflictarise, and the more difficult it becomes to compare the options. There is apoint where more options, products, and choices hurt both seller andconsumer.

Krzysztof R. Apt Social Network Games

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Paradox 1

Adding a product to a social network can trigger a sequence of changesthat will lead the agents from one Nash equilibrium to a new one that isworse for everybody.

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Example

1{•} 2 {•, •}

3{•, •} 4 {•}

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•}

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is a Nash equilibrium. The payoff to each player is 0.1 − θ > 0.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•} •

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•} •

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•} •

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•} •

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•} •

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•} •

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•} •

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•} •

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•} •

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•} •

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1{•} 2 {•, •}

3{•, •} 4 {•} •

5{•, •} 6 {•}

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.1

0.2

Cost θ is constant, 0 < θ < 0.1.

This is a Nash equilibrium. The payoff to each player is 0.

Krzysztof R. Apt Social Network Games

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Paradox 2

Removing a product from a social network can result in a sequence ofchanges that will lead the agents from one Nash equilibrium to a new onethat is better for everybody.

Krzysztof R. Apt Social Network Games

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Example

1

{•}

2{•} 3

{•, •}

4 {•, •}

w

w

w w

ww

w

w

Cost θ is product independent.

The weight of each edge is w , where w > θ.

Note Each node has two incoming edges.

Krzysztof R. Apt Social Network Games

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Example

1

{•}

2{•} 3

{•, •}

4 {•, •}

w

w

w w

ww

w

w

Cost θ is product independent.

The weight of each edge is w , where w > θ.

This is a Nash equilibrium. The payoff to each player is w − θ.

Krzysztof R. Apt Social Network Games

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Example

1

{•}

2{•} 3

{•}

4 {•, •}

w

w

w w

ww

w

w

Cost θ is product independent.

The weight of each edge is w , where w > θ.

This is not a legal joint strategy.

Krzysztof R. Apt Social Network Games

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Example

1

{•}

2{•} 3

{•}

4 {•, •}

w

w

w w

ww

w

w

Cost θ is product independent.

The weight of each edge is w , where w > θ.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1

{•}

2{•} 3

{•}

4 {•, •}

w

w

w w

ww

w

w

Cost θ is product independent.

The weight of each edge is w , where w > θ.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1

{•}

2{•} 3

{•}

4 {•, •}

w

w

w w

ww

w

w

Cost θ is product independent.

The weight of each edge is w , where w > θ.

This is not a Nash equilibrium.

Krzysztof R. Apt Social Network Games

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Example

1

{•}

2{•} 3

{•}

4 {•, •}

w

w

w w

ww

w

w

Cost θ is product independent.

The weight of each edge is w , where w > θ.

This is a Nash equilibrium. The payoff to each player is 2w − θ.

Krzysztof R. Apt Social Network Games

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When the paradoxes cannot occur

TheoremParadox 1 cannot arise when

the graph has no source nodes,

each Nash equilibrium uses at most one product.

Krzysztof R. Apt Social Network Games

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Final remarks

Needed: Identify other conditions that guarantee that these paradoxescannot arise.

Open problem:Does a social network exist that exhibits paradox 1 for every triggeredsequence of changes?

Alternative approach:Obligatory product selection (no t0).In this setup the above problem has an affirmative answer.

Krzysztof R. Apt Social Network Games

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References

K.R. Apt and E. Markakis, Social Networks with Competing

Products. Fundamenta Informaticae. To appear.

S. Simon and K.R. Apt, Social Network Games. Journal of Logic andComputation. To appear.

K.R. Apt, E. Markakis and S. Simon, Paradoxes in Social Networks

with Multiple Products. Submitted.

K.R. Apt and S. Simon, Social Network Games with Obligatory

Product Selection. Proc. 4th International Symposium on Games,Automata, Logics and Formal Verification (Gandalf 2013). EPTCS.To appear.

Krzysztof R. Apt Social Network Games

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Thank you

Krzysztof R. Apt Social Network Games