I performed a quick little simulation for version 2:

With K options and N voters, I drew the all K*N ratings independently from a standard normal distribution and then applied the method with D=sqrt(N)/2.

However, instead of using all partitions as suggested, I only used N/2D partitions. More precisely, I ordered the ballots in a random way in groups of size D, and then first used groups 1 and 2 as the benchmark and deciding group, afterwards used groups 3 and 4 for this, then used groups 5 and 6, and so on. In other words, the account adjustments were averaged not over all possible partitions but only over these sqrt(N) many groups.

I did this 100 times for each of a number of different pairs (K,N) and evaluated the standard deviation of the individual account adjustments. It turned out that for K=2 this standard deviation was approximately

  0.2 / sqrt(sqrt(N))

and only slightly larger for K=16 or K=128.

Since this is quite small when compared to the standard deviation of the original ratings, which is 1 of course, this averaging in version 2 indeed looks promising! (Without it, the standard deviation of the individual account adjustments would grow not shrink with growing N.)

Jobst


Jobst Heitzig schrieb:
Dear folks,

this night I had two additional ideas for RRVC, so here's two new versions of it.


In the first version, the fee F is determined from the benchmark ballots so that the expected "price" a deciding voter has to "pay" from her voting account is just that voter's rating difference between the winner and the random ballot lottery:


RRVC - New Version 1
--------------------

0. Each voter i is assumed to have a "voting account" whose balance is denoted C(i).

1. All N voters fill in a range ballot and additionally mark their favourite in case of a top-rating tie. Voter i can use ratings 0...C(i) only. If C(i) is negative, she can use the rating 0 only (but still mark her favourite). Let R(X,i) be the rating voter i gave to option X.

2. Put D = sqrt(N) (rounded up), and draw D "deciding" ballots. For each option X, determine the total rating T(X) these deciding ballots gave to X. The winner W of the decision is that option whose total rating is maximal, i.e. that option W for which T(W)>T(X) for all X other than W.

3. From the remaining ballots, draw D "benchmark" ballots. For each option X, determine the total rating B(X) these benchmark ballots gave to X, and determine the probability P(X) that X is the favourite on a ballot drawn randomly from these benchmark ballots. (I.e., P(X) is the fraction of benchmark ballots favouring X). Let Z be that option whose total rating is maximal in this group, i.e. that option Z for which B(Z)>B(X) for all X other than Z.

4. For each voter i whose ballot is amoung the deciding ballots, add the following amount to her voting account C(i):

   deltaC(i) := sum { P(X)*( B(X)-T(X,i) ) : X } + T(W,i)-B(Z),

where the sum is over all options  X, and where
   T(X,i) = T(X)-R(X,i)
is the total rating of X amoung all deciding ballots of voters other than i.

5. The remaining N-2D voters are the "compensating" voters. For each compensating voter j, add the following to her voting accout C(j):

   deltaC(j) := - sum { deltaC(i) : i } / (N-2D),

where the sum is over all deciding voters  i.


Remarks for version 1:

Since the deciding and benchmark groups are of equal size, the expected values of T(X) and R(X) are the same, and it is also likely that Z=W. This implies that the expected value of deltaC(i) given that i is a deciding voter and all voters report sincere ratings, is just

   sum { P(X)*R(X,i) : X } - R(W,i).

In other words, when ratings are sincere a deciding voter can expect to "pay" exactly her rating difference between the winner and the Random Ballot lottery. (This is a major difference to the Clarke tax where this "take Random Ballot as a benchmark" philosophy is not incorporated). Also note that the standard deviation of deltaC(i) under these assumptions is of an order somewhere between O(sqrt(D)) and O(D), depending on how correlated the individual voters' ratings are.

Still, the actual price payed by voter i is independent of her ratings as long as she does not manage to change the winner. Hence there is still no incentive to bargain for a lower price by misrepresenting my ratings.

Assuming the true value of W for voter i is U(A,i)=R(W,i), the net outcome for i is

  U(W,i) + deltaC(i)
  = sum { P(X)*( B(X)-T(X,i) ) : X } + T(W)-B(Z).

Now assume voter i thinks about changing the winner to A, originally having a total of T(A)<T(W). Since this manipulation does not change the values T(X,i), the net outcome for i after this manipulation would be

  U(A,i) + sum { P(X)*( B(X)-T(X,i) ) : X } + T(A,i)-B(Z)
  = sum { P(X)*( B(X)-T(X,i) ) : X } + T(A)-B(Z).

Since this differs from the first outcome only in that it has T(A) instead of T(W), it is obviously smaller since T(A)<T(W). So after all, i has no incentive to manipulate the outcome because she would have to pay more than she gains from this.

Actually, since voter i cannot know who are the deciding, benchmark, or compensating voters, she cannot base her strategic considerations on the actual value of W and deltaC(i), but only on their expected values in the random process of drawing the three voter groups.

The latter observation motivates a second version of the method. In this version, the winner is determined as before, but the account adjustments deltaC(i) are averaged over all possible configurations of the three voter groups. This has the advantage that because of this averaging, the standard deviation of deltaC(i) will become much smaller than in the previous versions, and hence the actual value of deltaC(i) will be quite close to the "fair" price sum { P(X)*R(X,i) : X } - R(W,i).

Unfortunately, the precise method is a bit technical:


RRVC - New Version 2
--------------------

0.-2. as above.

3. For each possible partition S of the N voters into disjoint sets SD,SB,SC of sizes D,D,N-2D, and for each option X, do the following:

a) Determine the total rating  T(X,S)  the ballots in  SD  gave to  X.
b) Determine the total rating  B(X,S)  the ballots in  SB  gave to  X.
c) Determine the probability P(X,S) that X is the favourite on a ballot drawn randomly from SB.

4. For each such partition  S, let...

a)  W(S)  be that  W  with  T(W,S)>T(X,S)  for all  X  other than  W.
b)  Z(S)  be that  Z  with  B(Z,S)>B(X,S)  for all  X  other than  Z.

5. For each such partition  S  and each voter  i,  put...

a)  alphaC(i,S) := 0  if  i  is not in  SD,  otherwise
    alphaC(i,S) :=
      sum { P(X,S)*( B(X,S)-T(X,i,S) ) : X } + T(W,i,S)-B(Z,S),
    where  T(X,i,S) = T(X,S)-R(X,i).

b)  gammaC(i,S) := 0  if  i  is not in  SC,  otherwise
    gammaC(i,S) := - sum { alphaC(i,S) : i } / (N-2D),
    where the sum is over all voters  i  in SD.

6. Finally, for each voter i, add the following amount to her voting account C(i):

    deltaC(i) := sum { alphaC(i,S)+gammaC(i,S) : S } / sum { 1 : S }

where the sums are over all partitions  S.


I have not yet calculated by what factor the variance of deltaC(i) will shrink because of the averaging. That might be a bit difficult since the values of alphaC(i,S) are not independent for different S. My guess, however, is that the averaging will lead to the standard deviation having an order of at most O(1) instead of O(sqrt(D)) or even O(D).

Perhaps someone can analyse this averaging in more detail and come up with am estimation of that standard deviation?


Yours, Jobst


Jobst Heitzig schrieb:
Another small remark:

With N voters total and B benchmark voters, the size D of the deciding group should probably be O(sqrt(N-B)).

This is because the amount transferred to an individual deciding voter's account is roughly proportional to D times a typical individual rating difference, hence the total amount transferred to the deciding group is proportional to D² times a typical individual rating difference. The same total amount is payed by the group of at most N-B-D compensating voters. Each of them should not be required to pay more than a constant multiple of a typical individual rating difference, hence D²/(N-B-D) should be O(1).

Jobst

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