On the Existence and Complexity of Core-Stable Data Exchanges

Jiaxin Song, Pooja Kulkarni, Parnian Shahkar and Bhaskar Ray Chaudhury

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Abstract: The rapid growth of data-driven technologies and the emergence of various data-sharing paradigms have underscored the need for efficient and stable data exchange protocols. In any such exchange, agents must carefully balance the benefit of acquiring valuable data against the cost of sharing their own. Ensuring stability in these exchanges is essential to prevent agents -- or groups of agents -- from departing and conducting local (and potentially more favorable) exchanges among themselves. To address this, we study a model where agents participate in a data exchange. Each agent has an associated payoff for the data acquired from other agents and a cost incurred during sharing its own data. The net utility of an agent is payoff minus the cost. We adapt the classical notion of core-stability from cooperative game theory to data exchange. A data exchange is core-stable if no subset of agents has any incentive to deviate to a different exchange. We show that a core-stable data exchange is guaranteed to exist when agents have concave payoff functions and convex cost functions -- a setting typical in domains like PAC learning and random discovery models. We show that relaxing either of the foregoing conditions may result in the nonexistence of core-stable data exchanges. Then, we prove that finding a core-stable exchange is PPAD-hard, even when the potential blocking coalitions are restricted to constant size. To the best of our knowledge, this provides the first known PPAD-hardness result for core-like guarantees in data economics. Finally, we show that data exchange can be modelled as a balanced $n$-person game. This immediately gives a pivoting algorithm via Scarf's theorem \cite{Scarf1967core}. We show that the pivoting algorithm works well in practice through our empirical results.

Date: 2025-09
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