Strategic Information Transmission over Gossip Networks
We consider a fully connected gossip network of $n$ nodes that track a binary continuous-time Markov source through a strategic sender transmitting updates under a communication budget at a rate that depends on the source state. The receivers exchange packets through gossip and decide whether to follow the sender. We model this interaction as a Stackelberg game and analyze it through a stochastic hybrid systems (SHS) framework. We prove that the sender's budget constraint binds at every interior optimum, reducing its problem to a one-dimensional search on the budget line. When the sender pushes its preferred state at the higher rate, the receivers gossip at the highest available rate. Gossip has no direction of its own and works against the asymmetry in the sender's policy rather than reinforcing it. We prove that an optimistic Stackelberg equilibrium exists, and that it is unique and explicitly characterized whenever a policy on the strategic half of that line is feasible at the gossip cap. Monte Carlo simulations agree with the analytical recursion.