CS 1699 / CS 3150 Fall 2014

**Phone
: 412-624-8844
**

* *

* In recent
years there has been a growing public fascination with the
complex "connectedness" of modern society. This
connectedness is found in many incarnations: in the rapid
growth of the Internet and the Web, in the ease with which
global communication now takes place, and in the ability of
news and information as well as epidemics and financial
crises to spread around the world with surprising speed and
intensity. These are phenomena that involve networks,
incentives, and the aggregate behavior of groups of people;
they are based on the links that connect us and the ways in
which each of our decisions can have subtle consequences for
the outcomes of everyone else. *

Networks, Crowds, and Markets combines different scientific perspectives in its approach to understanding networks and behavior. Drawing on ideas from economics, sociology, computing and information science, and applied mathematics, it describes the emerging field of study that is growing at the interface of all these areas, addressing fundamental questions about how the social, economic, and technological worlds are connected.

**Prerequisites:**

Technically, the
prerequisite is consent of the instructor. Ideally I would like
students to have done reasonably well (say a grade of B or
better) in CS 1502 or some class involving mathematical proofs,
and who are enthusiastic about learning. If you would like
permission to register for the course, send me an email with:

- A statement that you wish to register for the class
- A copy of your
academic transcript. An informal version from my.pitt.edu is
fine.

- If you are not a computer science student, some explanation of your background/training in doing mathematical proofs
- A brief (a few sentences) statement of why you want to take the class, and what you hope to gain from the class

**Schedule:
**

**Monday August 25 (Class 1):****Read chapter 1. Quiz at the start of class.****Lecture: Standard game theory solution concepts**

**Wednesday August 27 (Class 2):****Read chapter 2 and chapter 6. Quiz at the start of class, which will concentrate on the advanced material section.**

**Homework: Chapter 6, problems 1, 2, and 6.****Lecture:Proof of existence of (mixed) Nash Equilibrium via Brouwer's fixed point and Sperner's lemmas (source). End-of-line and PPAD-completeness. Approximate Nash in PPAD.**

**Friday August 29 (Class 3)**

**Read chapter 3. Quiz covering this at the start of class. Skim overview of PPAD-completeness of Nash.****Join the Google group https://groups.google.com/forum/#!forum/pitt_cs_1699_fall2014**

**Homework: Chapter 2 problem 2. Chapter 6 problem 15.**

**Start perusing papers from the ACM Conference on Economics and Computation (EC) in 2014, 2013 and 2012. Your goal is to find a few theoretically oriented papers (with nontrivial proofs) that are related to the course and that you find interesting. Post your first choice of paper to give a talk on to https://groups.google.com/forum/#!forum/pitt_cs_1699_fall2014****(which you will have to join). Include the following information:****title, authors, and abstract (which all should be cut and paste), (If you don't think the abstract is sufficiently descriptive) another paragraph elaborating on the contributions of the paper, a paragraph explaining what you think the paper is interesting, and a one sentence statement of what you think the take away message is for the paper. Before you post, check that no one else has picked that paper. So first come first served.**

**Lecture: NP-hardness of 2-Nash (Source). Hints of the proof of****PPAD-hardness of Nash.****Wednesday September 3 (Class 4)****Read chapter 7.****Quiz covering this at the start of class.****Homework: chapter 3 problem 5.****Lecture: Evolutionary stable strategies using the Hawk-Dove game as a running example**

**Friday September 5 (Class 5):**

**Read chapter 4 and chapter 8 except for the advanced material section. Quiz covering this at the start of class. Skim the advanced material section.**

**Homework: chapter 7 problems 3 and 4.**

**Lecture: Advanced material section of chapter 8. 4/3 bound on the price of anarchy. Primary Source. Secondary source and example of what slides for a talk in this area might look like.**

**Monday September 8 (Class 6):**

**Read chapter 5 except for the advanced material section. Quiz covering this at the start of class. Skim the advanced material section.****Homework: Chapter 4 problem 4. Chapter 8 problem 4.**

**Lecture: Advanced material section of chapter 5****Wednesday September 10 (Class 7):**

**Read chapter 9 except for the advanced material section. Quiz covering this at the start of class. Skim the advanced material section.****Homework: Chapter 5 problem 4.****Deadline for picking first EC paper to speak about.**

**Lecture: Advanced material from chapter 9****Friday September 12 (Class 8)****Read Chapter 10 up through section 10.3.****Quiz covering this at the start of class. Skim chapter 10.4.**

**Homework: Chapter 9 problem 11. Give a formal proof for part b if you can reasonably do so.**

**Lecture: Section 10.4, an algorithm for constructing market clearing pricing**

**Monday September 15 (Class 9)****Read Chapter 11****. Quiz covering this at the start of class.****Homework: Chapter 10 problem 15**

**Deadline for picking second EC paper to speaker about.****Post your choice of paper to give a talk on to https://groups.google.com/forum/#!forum/pitt_cs_1699_fall2014****(which you will have to join). Include the following information:****title, authors, and abstract (which all should be cut and paste), (If you don't think the abstract is sufficiently descriptive) another paragraph elaborating on the contributions of the paper, a paragraph explaining what you think the paper is interesting, and a one sentence statement of what you think the take away message is for the paper. Before you post, check that no one else has picked that paper. So first come first served.****Lecture: Finding market clearing prices via convex programming (source). Top trading cycle one sided preference algorithm and Gale-Shapley two sided preference matching algorithm (notes)**

**Wednesday September 17 (Class 10)****Read Chapter 12 except for advanced material section.****Quiz covering this at the start of class. Skim the advanced material section.****Homework: Chapter 11 problem 7**

**Lecture: Advanced material section: A game-theoretic derivation of the Nash-bargaining solution**

**Friday September 19 (Class 11)****Read Chapter 13, and Chapter 14, except for the advanced material section of chapter 14.****Quiz covering this at the start of class. Skim the advanced material section.****Homework: Chapter 12 problem 6**

**Lecture: Advanced material section of chapter 14: spectral analysis of Hubs and Authorities and Pagerank, and relation of Pagerank to random walks**

**Monday September 22 (Class 12)****Read Chapter 15 sections 1 and 2. Quiz covering this at the start of class. Skim sections 3 and 4.****Homework: Chapter 13 problem 1. Chapter 14 problem 6.**

**Deadline for preparation of presentation (powerpoint or whatever) of your first 25 minute talk****Lecture: Sections 3 and 4: VCG and proof that it is a truthful for combinatorial auctions. LOS mechanism, greedy approximation algorithm for assignment, and truthful analysis, for single-minded bidders combinatorial auctions (notes I believe originally from Tim Roughgarden).**

**Wednesday September 24 (Class 13)**

**Read Chapter 15 sections 5 to 8.****Quiz covering this at the start of class. Skim the advanced material section.****Homework: Chapter 15 problem 5****Lecture: Advanced material section of chapter 15: proof VCG gives market clearing prices****Friday September 26 (Class 14)****Read Chapter 17 through section 17.5. Quiz covering this at the start of class. Skim chapter 16.**

**Homework: Chapter 15 problem 6****Lecture: Chapter 16 on Information cascades and Bayes rule****Monday September 29 (Class 15)****Read Chapter 18 except for advanced material section.****Quiz covering this at the start of class. Skim the advanced material section.****Homework: Chapter 17 problem 4.****Lecture: Advanced material section: Analysis of rich-get-richer process**

**Wednesday October 1 (Class 16)**

**Read Chapter 19 except for advanced material section. Quiz covering this at the start of class. Skim the advanced material section.**

**Homework: Chapter 16 problem 6. Chapter 18 problem 1****Lecture: Advanced material section. Analysis of cascade capacity****Friday October 3 (Class 17)****Read Chapter 20 except for advanced material section. Quiz covering this at the start of class. Skim the advanced material section.****Homework: Chapter 19 problem 7**

**Lecture: Advanced material section. Analysis of decentralized search****Monday October 6 (Class 18)****Read Chapter 21 except for advanced material section. Quiz covering this at the start of class. Skim the advanced material section.****Deadline for preparation of presentation (powerpoint or whatever) of your second 25 minute talk**

**Homework: Chapter 20 problem 3****Lecture: Advanced material section, analysis of branching and coalescent processes****Wednesday October 8 (Class 19)****Read Chapter 22 except for advanced material section. Quiz covering this at the start of class. Skim the advanced material section.****Homework: Chapter 21 problem 3****Lecture: Advanced material section, wealth dynamics in markets****Friday October 10 (Class 20)****Read Chapter 23 up through section 23.6 inclusive. Quiz covering this at the start of class. Skim the advanced material section.**

**Homework: Chapter 22 problem 7**

**Lecture: Advanced material section. proof of Arrow's impossibility theorem****Tuesday October 14 (Class 21)****Read Chapter 23 from 23.7 through 23.10 inclusive. Chapter 24. Quiz covering this at the start of class.****Homework: Chapter 23 problem 3. Chapter 24 problem 2.**

**Lecture: Statement and proof of Gibbard-Satterthwaite theorem (source)**

**Wednesday October 15 (No class)****Friday October 17 (No class)****Monday October 20 (Class 22)**

**Neal's Talk****Mike's Talk****Wednesday October 22 (Class 23)**

**Salim's talk****Vineet's talk****Friday October 24 (Class 24)**

**Ben's talk****Zach's talk****Monday October 27 (Class 25)****Neal's talk****Mike's talk****Wednesday October 29 (Class 26)****Salim's talk****Vineet's talk****Friday October 31****No class**

**Monday November 3 (Class 27)**

**Ben's talk****Zach's talk**