@article{aa0b21d120464d268b6dc5c286c83b1e,
title = "Economic efficiency requires interaction",
abstract = "We study the necessity of interaction between individuals for obtaining approximately efficient economic allocations. We view this as a formalization of Hayek's classic point of view that focuses on the information transfer advantages that markets have relative to centralized planning. We study two settings: combinatorial auctions with unit demand bidders (bipartite matching) and combinatorial auctions with subadditive bidders. In both settings we prove that non-interactive protocols require exponentially larger communication costs than do interactive ones, even ones that only use a modest amount of interaction.",
keywords = "Combinatorial auctions, Communication complexity",
author = "Shahar Dobzinski and Noam Nisan and Sigal Oren",
note = "Funding Information: Supported in part by the I-CORE program of the planning and budgeting committee and the Israel Science Foundation 4/11 and by EU CIG grant 618128.Part of the work was done while the author was at Hebrew University and Microsoft Research research and was supported by an I-CORE fellowship and by a grant from the Israel Science Foundation and while at Cornell University where the author was supported in part by NSF grant CCF-0910940 and a Microsoft Research Fellowship. Funding Information: Part of the work was done while the author was at Hebrew University and Microsoft Research research and was supported by an I-CORE fellowship and by a grant from the Israel Science Foundation and while at Cornell University where the author was supported in part by NSF grant CCF-0910940 and a Microsoft Research Fellowship. Publisher Copyright: {\textcopyright} 2018",
year = "2019",
month = nov,
day = "1",
doi = "10.1016/j.geb.2018.02.010",
language = "English",
volume = "118",
pages = "589--608",
journal = "Games and Economic Behavior",
issn = "0899-8256",
publisher = "Academic Press Inc.",
}