The communication cost of selfishness: ex post implementation

  • Authors:
  • Ronald Fadel;Ilya Segal

  • Affiliations:
  • Stanford University, Stanford, CA;Stanford University, Stanford CA

  • Venue:
  • TARK '05 Proceedings of the 10th conference on Theoretical aspects of rationality and knowledge
  • Year:
  • 2005

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Abstract

We consider the communication complexity of implementing a given decision rule when the protocol must also calculate payments to motivate the agents to be honest in an ex post equilibrium (agents' payoffs are assumed to be quasi-linear in such payments). We find that the communication cost of selfishness when measured with the average-case communication complexity may be arbitrarily large. For the worst-case communication complexity measure, we provide an exponential upper bound on the communication cost of selfishness. Whether this bound is ever achieved remains an open question. We examine several special cases in which the communication cost of selfishness proves to be very low. These include cases where we want to implement efficiency or where we have only two agents, and the precision of agents' utilities is fixed.