@InProceedings{feigenbaum03a,
  author =	 {Joan Feigenbaum and Lance Fortnow and David Pennock
                  and Rahul Sami},
  title =	 {Computation in a Distributed Information Market},
  googleid =	 {JmxrPDMqVOwJ:scholar.google.com/},
  booktitle =	 {Proceedings of the {ACM} Conference on Electronic
                  Commerce },
  year =	 2003,
  abstract =	 {According to economic theory, supported by empirical
                  and laboratory evidence, the equilibrium price of a
                  fi- nancial security reflects all of the information
                  regarding the security s value. We investigate the
                  dynamics of the computational process on the path
                  toward equilibrium, where information distributed
                  among traders is revealed stepby- step over time and
                  incorporated into the market price. We develop a
                  simplified model of an information market, along
                  with trading strategies, in order to formalize the
                  computational properties of the process. We show
                  that securities whose payoffs cannot be expressed as
                  a weighted threshold function of distributed input
                  bits are not guaranteed to converge to the proper
                  equilibrium predicted by economic theory. On the
                  other hand, securities whose payoffs are threshold
                  functions are guaranteed to converge, for all prior
                  probability distributions. Moreover, these threshold
                  securities converge in at most n rounds, where n is
                  the number of bits of distributed information. We
                  also prove a lower bound, showing a type of
                  threshold security that requires at least n/2 rounds
                  to converge in the worst case.},
  keywords =     {mechanism-design},
  url =		 {http://jmvidal.cse.sc.edu/library/feigenbaum03a.pdf},
  cluster = 	 {17029282490540059686},
}