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Efficient and incentive compatible exchange of real-time information

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  • William Phan

    (North Carolina State University)

Abstract

We consider the problem of coordinating the exchange of real-time information. For example, a US Department of Transportation pilot program seeks to reduce traffic accidents by allowing each vehicle to transfer crash-relevant information (e.g. position, speed, braking status) to and from neighboring vehicles. Time is of the essence: vehicle information becomes stale quickly. Electronic files are the medium of information and corrupt/useless when partial; hence, we model them as discrete, indivisible objects. Furthermore, each agent may perfectly replicate an object in his possession and transfer it to another agent. However, replication and transfer takes time (e.g. due to bandwidth constraints), and scarcity arises due to fact that information quickly becomes valueless. How should agents transfer such objects? We study efficiency, strategy-proofness, withholding-proofness, and introduce a new axiom based on the concept of reciprocity. Our results are as follows: when each agent owns one object and consumes only one object, we identify a family of rules satisfying all four axioms. If each agent owns a bundle of objects and consumes a bundle, then the four axioms are incompatible. If agents live in a network, then for a large class of incomplete networks, efficiency is only compatible with strategy-proofness.

Suggested Citation

  • William Phan, 2019. "Efficient and incentive compatible exchange of real-time information," International Journal of Game Theory, Springer;Game Theory Society, vol. 48(1), pages 205-242, March.
    • Handle: RePEc:spr:jogath:v:48:y:2019:i:1:d:10.1007_s00182-018-0625-y
    DOI: 10.1007/s00182-018-0625-y
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    References listed on IDEAS

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