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- W2307094671 abstract "It is a well known phenomenon that communication between a group ofplayers affects the set of equilibria of a repeated game. This communicationcan be costly. Its cost may be measured in terms of complexity, or payoffs.In particular, a payoff cost of communication occurs when players communicatethrough their actions, and one is interested in characterizing the optimalcommunication.We study a class of games that models the communication cost of onlinecoordination. For example: A sequence X = (X(t)) of zeroes and ones is chosenat random, and announced to a player, the seer, but not to his teammate, thefollower. A repeated game then proceeds in which the follower and the seerchoose actions Y (t) and Z(t) in {0, 1} at stage t, and their (common) stagepayoff is 1 whenever X(t) = Y (t) = Z(t).We address the question of the optimal communication level from the seerto the follower in order to maximize payoffs. We characterize this level usingthe notion of entropy, and provide construction of optimal strategies for theteam: the seer and the follower. In particular, we prove that against a familyof i.i.d. random variables (1/2, 1/2), the maximum expected payoff v to theteam is the solution of the equationH(x) + log(3) (1 - x) = 1;where H is the entropy function and log is taken in basis 2. Moreover, we provethe existence of pure strategies of the prophet and the seer that guarantee vagainst all sequences X = X(t). Hence, the zero-sum game in which player Iis the Team (no correlation is allowed between its members), player II is theopponent, and the payoff to I is as above, has a value, and this equals v. Ourresult has direct implications for repeated games played by finite automata, orby players with bounded recall." @default.
- W2307094671 created "2016-06-24" @default.
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- W2307094671 date "2002-01-01" @default.
- W2307094671 modified "2023-10-17" @default.
- W2307094671 title "The economics of information transmission" @default.
- W2307094671 hasPublicationYear "2002" @default.
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