The algorithmic economics seminar takes place at Carnegie Mellon University, and is generously supported by Yahoo! Academic Relations. The seminar's goal is to bring together computer scientists, economists, and social scientists (from Carnegie Mellon and the University of Pittsburgh) who are interested in research at the intersection of these disciplines. Each semester, three distinguished speakers are invited to speak at the seminar.

The seminar is organized by Ariel Procaccia. It generally takes place every few weeks on Tuesday at noon (please see the schedule below). Lunch is served before every talk.

To receive announcements about the seminar, please join the mailing list.

Feb 28, 2012 @ noon, Newell Simon Hall (NSH) 3305
Michael Kearns, prof. of computer and information science, University of Pennsylvania
Behavioral Experiments in Networked Trading

I will describe recent human-subject experiments in a detailed microeconomic model of trading in networks. Players are divided into two types with symmetric incentives that create mutual interest in trade, and are arranged in bipartite networks with varying topologies that create potential asymmetries in negotiating power. Players can only trade with their immediate neighbors, via a local limit order mechanism that permits partial executions of orders.
An interesting aspect of this model is that it has a detailed equilibrium theory in which any variation in individual wealth is directly related to global network structure. This permits comparison between equilibrium and human subject wealth at the individual and collective levels. We describe these findings along with a number of other analyses.
Joint work with Stephen Judd.

Mar 13, 2012 @ noon, Newell Simon Hall (NSH) 3305
Michael Wellman, prof. of computer science and engineering, University of Michigan
Empirical Game-Theoretic Analysis for Canonical Auction Games

Some canonical auction scenarios -- involving simultaneous markets or dynamic trading, for example -- are descriptively simple yet resist analytical game-theoretic solution. We gain traction on such problems by combining simulation, search, and machine learning with game-theoretic reasoning, in an approach we call "empirical game-theoretic analysis". EGTA studies have produced strategic insights and improved strategies for simultaneous ascending auctions and continuous double auctions, as well as the more complex domains presented by a series of Trading Agent Competition events. Our most recent investigation, of simultaneous one-shot auctions, demonstrates the utility of EGTA for suggesting and evaluating theoretical characterizations of equilibrium bidding strategies.

April 3, 2012 @ noon, Hamburg Hall (HBH) 1000 [joint with the iLab seminar]
Duncan Watts, principal research scientist, Yahoo! Research
Using the Web to do Social Science

Social science is often concerned with the emergence of collective behavior out of the interactions of large numbers of individuals, but in this regard it has long suffered from a severe measurement problem—namely that interactions between people are hard to observe, especially at scale, over time, and at the same time as observing behavior. In this talk, I will argue that the technological revolution of the Internet is beginning to lift this constraint. To illustrate, I will describe several examples of internet-based research that would have been impractical to perform until recently, and that shed light on some longstanding sociological questions. Although internet-based research still faces serious methodological and procedural obstacles, I propose that the ability to study truly “social” dynamics at individual-level resolution will have dramatic consequences for social science.