Cost And Complexity Of Harnessing Games With Payments
AbstractThis 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.
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Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Game Theory Review.
Volume (Year): 13 (2011)
Issue (Month): 01 ()
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Web page: http://www.worldscinet.com/igtr/igtr.shtml
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