Interactive Communication for Data Exchange

Two parties observing correlated data seek to exchange their data using interactive communication. How many bits must they communicate? We propose a new interactive protocol for data exchange which increases the communication size in steps until the task is done. Next, we derive a lower bound on the minimum number of bits that is based on relating the data exchange problem to the secret key agreement problem. Our single-shot analysis applies to all discrete random variables and yields upper and lower bound of a similar form. In fact, the bounds are asymptotically tight and lead to a characterization of the optimal rate of communication needed for data exchange for a general sequence such as mixture of IID random variables as well as the optimal second-order asymptotic term in the length of communication needed for data exchange for the IID random variables, when the probability of error is fixed. This gives a precise characterization of the asymptotic reduction in the length of optimal communication due to interaction; in particular, two-sided Slepian-Wolf compression is strictly suboptimal.