Communication Requirements for Individual Agents in Networks and Hierarchies

Stanley Reiter has been a pioneer in studying the informational requirements of resource allocation mechanisms. Reiter and Hurwicz were the first to show us how to work with one important measure of a mechanism’s informational cost, namely the number of variables communicated, or— more generally—the size of the mechanism’s message space (Hurwicz, 1972, 1977; Mount and Reiter, 1974). They developed techniques for determining the minimal message-space size if the mechanism’s outcome is to meet a specified standard. The techniques remain fundamental. The present paper, for example, is strongly influenced by them.1

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