Tradeoffs Between Incentive Mechanisms in Boolean Games

Abstract

Two incentive mechanisms for Boolean games were proposed recently - taxation schemes and side payments. Both mechanisms have been shown to be able to secure a pure Nash equilibrium (PNE) for Boolean games. A complete characterization of outcomes that can be transformed to PNEs is given for each of the two incentive mechanisms. Side payments are proved to be a weaker mechanism in the sense that the outcomes that they can transform to PNEs are a subset of those transformable by taxation. A family of social-network-based Boolean games, which demonstrates the differences between the two mechanisms for securing a PNE, is presented. A distributed search algorithm for finding the side payments needed for securing a PNE is proposed. An empirical evaluation demonstrates the properties of the two mechanisms on the family of social-network-based Boolean games.