Cost and Complexity of Harnessing Games with Payments
This article studies how a mechanism designer can influence games by promising payments to the players depending on their mutual choice of strategies. First, we investigate the cost of implementing a desirable behavior and present algorithms to compute this cost. Whereas a mechanism designer can decide efficiently whether strategy profiles can be implemented at no cost at all our complexity analysis indicates that computing an optimal implementation is generally NP-hard. Second, we introduce and analyze the concept of leverage in a game. The leverage captures the benefits that a benevolent or a malicious mechanism designer can achieve by implementing a certain strategy profile region within economic reason, i.e., by taking the implementation cost into account. Mechanism designers can often manipulate games and change the social welfare by a larger extent than the amount of money invested. Unfortunately, computing the leverage turns out to be intractable as well in the general case.
Top- Eidenbenz, Raphael
- Pignolet, Yvonne-Anne
- Schmid, Stefan
- Wattenhofer, Roger
Category |
Journal Paper |
Divisions |
Communication Technologies |
Subjects |
Informatik Allgemeines |
Journal or Publication Title |
International Game Theory Review |
ISSN |
0219-1989 |
Date |
2011 |
Export |