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26 nips-2003-An MDP-Based Approach to Online Mechanism Design


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Author: David C. Parkes, Satinder P. Singh

Abstract: Online mechanism design (MD) considers the problem of providing incentives to implement desired system-wide outcomes in systems with self-interested agents that arrive and depart dynamically. Agents can choose to misrepresent their arrival and departure times, in addition to information about their value for diļ¬€erent outcomes. We consider the problem of maximizing the total longterm value of the system despite the self-interest of agents. The online MD problem induces a Markov Decision Process (MDP), which when solved can be used to implement optimal policies in a truth-revealing Bayesian-Nash equilibrium. 1


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