A 1993 survey with a unified treatment of the subject can be found in:
If the measurements at each sensor are conditionally independent (conditional on any hypothesis), there is a lot to say:
W. P. Tay, J. N. Tsitsiklis, and M. Z. Win, "On the Impact of Node Failures and Unreliable Communications in Dense Sensor Networks", IEEE Transactions on Signal processing, Vol. 56, No. 6, June 2008, pp. 2535-2546.
W. P. Tay, J. N. Tsitsiklis, and M. Z. Win, "On the Sub-exponential Decay of Detection Error Probabilities in Long Tandems", IEEE Transactions on Information Theory, Vol. 54, No. 10, October 2008, pp. 4767-4771.
W. P. Tay, J. N. Tsitsiklis, and M. Z. Win, "Data Fusion Trees for Detection: Does Architecture Matter?", November 2006; IEEE Transactions on Information Theory, in press.
W. P. Tay, J. N. Tsitsiklis, and M. Z. Win, "Asymptotic Performance of a Censoring Sensor Network ,'' IEEE Transactions on Information Theory, Vol. 53, No. 11, pp. 4191-4209, November 2007.
W.W. Irving and J.N. Tsitsiklis, "Some Properties of Optimal Thresholds in Decentralized Detection", IEEE Transactions on Automatic Control, Vol. 39, No. 4, April 1994, pp. 835-838.
J.N. Tsitsiklis, "Extremal Properties of Likelihood-Ratio Quantizers", IEEE Transactions on Communications, Vol. 41, No. 4, 1993, pp. 550-558. G. Polychronopoulos and J.N. Tsitsiklis, "Explicit Solutions for some Simple Decentralized Detection Problems", IEEE Transactions on Aerospace and Electronic Systems, Vol. 26, 1990, pp. 282-291. J.N. Tsitsiklis, "Decentralized Detection by a Large Number of Sensors", Mathematics of Control, Signals and Systems, Vol. 1, No. 2, 1988, pp. 167-182.
Agent 1 knows x, agent 2 knows y. They want to compute a function f(x,y). How much do they need to communicate? This formulation captures much of the essence of the data fusion problem:
Unfortunately, the problem is NP-complete, in general:
But for specific types of functions f, progress is possible. When x and y are continuous variables, calculating the communication complexity may involve tools from algebraic or differential geometry:
In another variant, agent 1 knows a convex function g(.), agent 2 knows a convex function h(.) and they want optimize f(.)+g(.) within some accuracy epsilon: