An equivalence between wagering and fair-division mechanisms

Rupert Freeman, David M. Pennock, Jennifer Wortman Vaughan

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

We draw a surprising and direct mathematical equivalence between the class of allocation mechanisms for divisible goods studied in the context of fair division and the class of weakly budget-balanced wagering mechanisms designed for eliciting probabilities. The equivalence rests on the intuition that wagering is an allocation of financial securities among bettors, with a bettor's value for each security proportional to her belief about the likelihood of a future event. The equivalence leads to theoretical advances and new practical approaches for both fair division and wagering. Known wagering mechanisms based on proper scoring rules yield fair allocation mechanisms with desirable properties, including the first strictly incentive compatible fair-division mechanism. At the same time, allocation mechanisms make for novel wagering rules, including one that requires only ordinal uncertainty judgments and one that outperforms existing rules in a range of simulations.

Original languageEnglish (US)
Title of host publication33rd AAAI Conference on Artificial Intelligence, AAAI 2019, 31st Innovative Applications of Artificial Intelligence Conference, IAAI 2019 and the 9th AAAI Symposium on Educational Advances in Artificial Intelligence, EAAI 2019
PublisherAAAI press
Pages1957-1964
Number of pages8
ISBN (Electronic)9781577358091
StatePublished - 2019
Externally publishedYes
Event33rd AAAI Conference on Artificial Intelligence, AAAI 2019, 31st Annual Conference on Innovative Applications of Artificial Intelligence, IAAI 2019 and the 9th AAAI Symposium on Educational Advances in Artificial Intelligence, EAAI 2019 - Honolulu, United States
Duration: Jan 27 2019Feb 1 2019

Publication series

Name33rd AAAI Conference on Artificial Intelligence, AAAI 2019, 31st Innovative Applications of Artificial Intelligence Conference, IAAI 2019 and the 9th AAAI Symposium on Educational Advances in Artificial Intelligence, EAAI 2019

Conference

Conference33rd AAAI Conference on Artificial Intelligence, AAAI 2019, 31st Annual Conference on Innovative Applications of Artificial Intelligence, IAAI 2019 and the 9th AAAI Symposium on Educational Advances in Artificial Intelligence, EAAI 2019
Country/TerritoryUnited States
CityHonolulu
Period1/27/192/1/19

All Science Journal Classification (ASJC) codes

  • Artificial Intelligence

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