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Multiagent Systems July 2, 2014 10. Coalition Formation Multiagent Systems 10. Coalition Formation B. Nebel, C. Becker-Asano, S. Wöl Albert-Ludwigs-Universität Freiburg July 2, 2014 10.1 Motivation 10.2 Terminology 10.3 Basics 10.4 10.5 10.6 Summary B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 1 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 2 / 30 10.1 Motivation Motivation Motivation Motivation Remember the prisoner's dilemma with the following payo matrix: Player 2 C D Player 1 C 2, 2 0, 3 D 3, 0 1, 1 In games like this one cooperation is prevented, because: Binding agreements are not possible Utility is given directly to individuals as the result of individual action How about real world situations? B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 2 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 3 / 30

Motivation Terminology Prisoner's dilemma & the real world 10.2 Terminology Theoretical problems: Binding agreements are not possible Utility is given directly to individuals as the result of individual action Real world situation: Contracts can form binding agreements Utility is given to organizations/groups of people and not to individuals Under these circumstances cooperation becomes both possible and rational. Cooperative game theory asks which contracts are meaningful solutions among self-interested agents. B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 4 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 5 / 30 Terminology I Setting: Terminology Ag = {1,..., n} agents (nite, typically n > 2) Any subset C of Ag is called a coalition C = Ag is the grand coalition A cooperative game is a pair G = Ag, ν ν : 2 Ag R is the characteristic function of the game ν(c) is the maximum utility C can achieve, regardless of the remaining agents' behaviors (outside of coalition C ) A coalition with only one agent is a singleton coalition Finally: individual actions, utilities, and the origin of ν do not matter, i.e. they are assumed to be given. Example: A game with Ag = {1, 2} Singleton coalitions ν({1}) = 5 and ν({2}) = 5 Grand coalition ν({1, 2}) = 20 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 6 / 30 Terminology II A simple coalition game: Terminology value of any coalition is either 0 (`loosing') or 1 (`winning') voting systems can be understood in terms of simple games General questions now: 1. Which coalitions might be formed by rational agents? 2. How should payo be reasonably divided between members of a coalition? Just as non-cooperative games had solution concepts (Nash-equilibria,... ), cooperative games have theirs as well (,... ). B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 7 / 30

Basics Basics 10.3 Basics Three Stages of Cooperative Action The cooperation lifecycle (Sandholm et al., 1999): Coalition structure generation: Asking which coalitions will form, concerned with stability For example, a productive agent has the incentive to defect from a coalition with a lazy agent Necessary but not sucient condition for establishment of a coalition Solving the optimization problem of each coalition: Decide on collective plans Maximize the collective utility of the coalition Dividing the value of the solution of each coalition: Concerned with fairness of contract How much an agent should receive based on her contribution B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 8 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 9 / 30 Outcome and Objections Basics Question: Which coalitions are stable? An outcome x = x 1,..., x k for a coalition C in game Ag, ν is a distribution of C 's utility to members of C Outcomes must be feasible (don't overspend) and ecient don't underspend) x i C i = ν(c) Example: Ag = {1, 2}, ν({1}) = 5, ν({2}) = 5, and ν({1, 2}) = 20 Possible outcomes for C grand = {1, 2} are 20, 0, 19, 1,..., 1, 19, 0, 20 C (e.g. a singleton coalition) objects to an outcome of a grand coalition (e.g. 1, 19 ), if there is some outcome for C (e.g. ν({1}) = 5) in which all members of C are strictly better o Formally: C Ag object to x = x 1,..., x n for the grand coalition, i there exists some outcome x = x 1,..., x k for C, such that x i > x i for all i C B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 10 / 30 The core Basics Answering the question Is the grand coalition stable? is the same as asking: Is the core non-empty? The core The core of a coalition game is the set of outcomes for the grand coalition to which nobody has an objection. Non-empty core there exists some way that the grand coalition can cooperate and distribute the resulting utility such that no (sub-)coalition could do better by defecting. Previous example? Core contains all outcomes between 15, 5 and 5, 15 inclusive B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 11 / 30

Basics The core: problems 10.4 Despite the usefulness of the concept of the core, some problems arise: Sometimes the core is empty and to detect this all possible coalitions need to be enumerated with n agents, 2 n 1 subsets / coalitions need to be checked! Fairness is not considered, e.g. 5, 15 core, but all surplus goes to one agent alone Solution to second problem is considered next. B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 12 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 13 / 30 (preliminaries) Idea: To eliminate unfair outcomes, try to divide surplus according to each agent's contribution Dene marginal contribution of i to C : Marginal contribution The marginal contribution µ i (C) of agent i to coalition C is dened as: µ i (C) = ν(c {i}) ν(c) Axioms any fair distribution should satisfy: Symmetry: if two agents contribute the same, then they should receive same payo (they are interchangeable) Dummy player: agents not adding any value to any coalition should receive what they earn on their own Additivity: if two games are combined, then the value a player gets should equal the sum of the values it receives in the individual games B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 14 / 30 The sh i for agent i is dened as: sh i = 1 Ag! o (Ag) µ i (C i (o)) (Ag) denotes the set of all possible orderings, i.e. permutations, for example, with Ag = {1, 2, 3}: (Ag) = {(1, 2, 3), (1, 3, 2), (2, 1, 3),...}) C i (o) denotes the set containing only those agents that appear before agent i in o, for example, with o = {3, 1, 2): C 3 (o) = and C 2 (o) = {1, 3} Requires that ν( ) = 0 and ν(c C ) ν(c) + ν(c ) if C C = (i.e. ν must be superadditive) B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 15 / 30

: examples : a dummy player example Examples for calculations of the : 1. Consider ν({1}) = 5, ν({2}) = 5, and ν({1, 2}) = 20: Intuition says to allocate 10 to each agent µ 1 ( ) = 5, µ 2 ( ) = 5, µ 1 ({2}) = 15, µ 2 ({1}) = 15 sh 1 = sh 2 = (5 + 15)/2 = 10 (same as intuition) 2. Consider ν({1}) = 5, ν({2}) = 10, and ν({1, 2}) = 20: µ1 ( ) = 5, µ 2 ( ) = 10, µ 1 ({2}) = ν({1, 2}) ν({2}) = 20 10 = 10, µ 2 ({1}) = 20 5 = 15 sh 1 = (5 + 10)/2 = 7.5, sh 2 = (10 + 15)/2 = 12.5 Agent 2 contributes more than agent 1 receives higher payo! Finally, consider Ag = {1, 2, 3}, with ν({1}) = 5, ν({2}) = 5, ν({3}) = 5, ν({1, 2}) = 10, ν({1, 3}) = 10, ν({2, 3}) = 20, and ν({1, 2, 3}) = 25: We have µ 1 ( ) = 5, µ 2 ( ) = 5, µ 3 ( ) = 5, µ 1 ({2}) = 5, µ 1 ({3}) = 5, µ 1 ({2, 3}) = 5, µ 2 ({1}) = 5, µ 2 ({3}) = 15, µ 2 ({1, 3}) = 15, µ 3 ({2}) = 15, µ 3 ({1, 2}) = 15. Agent 1 is a dummy player and its share should be sh 1 = 5 (dummy player axiom) sh 2 = (5 + 5 + 15 + 15)/4 = 10 and similarly sh 3 = 10. Important: The is the only value that satises the fairness axioms B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 16 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 17 / 30 10.5 Induced subgraphs Marginal Contribution Nets Computational and representational issues Consider a naïve representation of a coalition game: 1, 2, 3 1 = 5 2 = 5 3 = 5 1, 2 = 10 1, 3 = 10 2, 3 = 20 1, 2, 3 = 25 This is infeasible, because it is exponential in the size of Ag! succinct representation needed: Modular representations exploit Shapley's axioms directly Basic idea: divide the game into smaller games and exploit additivity axiom B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 18 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 19 / 30

Induced subgraphs Modular representations Induced subgraphs Idea: dene characteristic function ν(c) by an undirected weighted graph Value of a coalition C Ag : ν(c) = {i,j} C w i,j Example: Two modular representations will be discussed: 1. Induced subgraphs: a succinct, but incomplete representation 2. Marginal contribution nets: generalization of induced subgraphs, complete, but in worst case not succinct 2 A C 3 4 B D 1 5 ν({a, B, C}) = 3 + 2 = 5 ν({d}) = 5 ν({b, D}) = 1 + 5 = 6 ν({a, C}) = 2 Not a complete representation But easy to compute the for a given player in polynomial time: sh i = 1 w 2 j i i,j Checking emptiness of the core is NP-complete, and membership to the core is co-np-complete B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 20 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 21 / 30 Marginal Contribution Nets Marginal Contribution Nets Marginal Contribution Nets I Marginal Contribution Nets II Idea: represent characteristic function as a set of rules 1. Structure of the rules: pattern value pattern is conjunction of agents, e.g. 1 3 1 3 would apply to {1, 3} and {1, 3, 5}, but not to {1} or {8, 12} C = φ: the rule φ x applies to coalition C rs C = {φ x rs C = φ}: the rules that apply to C 2. The characteristic function associated with the ruleset rs: ν rs (C) = x φ x rsc Example: rs 1 = {a b 5, b 2} ν rs1 ({a}) = 0, ν rs1 ({b})) = 2, and ν rs1 ({a, b})) = 7 Extension: Allow negation in rules indicating the absence of agents instead of their presence Example: with rs 2 = {a b 5, b 2, c 4, b c 2} we have ν rs2 ({b}) = 0 (2nd and 4th rule), and ν rs2 ({b, c}) = 6 (2nd and 3rd rule) General properties: can be computed in polynomial time Complete representation, but not necessarily succinct B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 22 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 23 / 30

s for Simple Games Remember: A coalition game is simple, if the value of any coalition is either zero (losing) or one (winning). model yes/no voting systems Y = Ag, W, where W 2 Ag is the set of winning coalitions If C W, coalition C would be able to determine the outcome, `yes' or `no' Important conditions: Non-triviality: W 2 Ag Monotonicity: if C 1 C 2 and C 1 W then C 2 W Zero-sum: if C W then Ag \ C W Empty coalition loses: W Grand coalition wins: Ag W Important: Naïve representation is exponential in the number of agents Weighted Voting Games Weighted voting games are an extension of simple games: For each agent i Ag dene a weight w i Dene an overall quota q A coalition is winning if the sum of their weights exceeds the quota: ν(c) = { 1 if i C w i q 0 otherwise Example: Simple majority voting, w i = 1 and q = Ag +1 2 Succinct (but incomplete) representation: q; w 1,..., w n B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 24 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 25 / 30 Shapley-Shubic power index k-weighted Voting Games The Shapley-Shubic power in index is the in yes/no games: Measures the power of the voter in this case Computation is NP-hard, no reasonable polynomial time approximation Checking emptiness of the core can be done in polynomial time (veto player) It has counter-intuitive properties: In the weighted voting game 100; 99, 99, 1 all three voters have the same power ( 1 3 ) Player with non-zero weight might nevertheless have no power, e.g., in 10; 6, 4, 2 third player is a dummy player But, by adding one player 10; 6, 4, 2, 8 third player's power increases Extension of weighted voting games: k-weighted voting games complete representation (in contrast to weighted voting games) overall game: conjunction k of k dierent weighted voting games Winning coalition: the one that wins in all component games Relation to simple coalition games (Wooldridge, p. 285): Every simple game can be represented by a k-weighted voting game in which k is at most exponential in the number of players. Real world relevance: the voting system of the enlarged European Union is a three-weighted voting game B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 26 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 27 / 30

Summary Summary 10.6 Summary Summary Thanks What we have learned today: Coalition formation The core of a coalition game The Dierent representations for dierent types of games General coalition games: induced subgraphs & marginal contribution nets : (k-)weighted voting games The Shapley-Shubic power index of simple games Next (on Friday!): Coalition Games with Goals & Coalition Structure Formation B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 28 / 30 B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 29 / 30 Summary Thanks Acknowledgments These lecture slides are based on the following resources: Dr. Michael Rovatsos, The University of Edinburgh http://www.inf.ed.ac.uk/teaching/courses/abs/ abs-timetable.html Michael Wooldridge: An Introduction to MultiAgent Systems, John Wiley & Sons, 2nd edition 2009. B. Nebel, C. Becker-Asano, S. Wöl (Universität Freiburg) Multiagent Systems July 2, 2014 30 / 30