This project is exploring algorithms for computing multiagent strategies that are in exact and approximate equilibrium. The context involves economic games that are played repeatedly by agents each of whom privately observes noisy signals about other players' actions. A complete characterization of equilibria for such games, missing until recently, introduces the concept of a finite state equilibrium in which each player's strategy is represented as a finite state automaton. Players' strategies are verified to be in equilibrium by solving a partially observable Markov decision process. The research is building on this surprising and deep application of decision theory toward equilibrium analysis in a pragmatic class of games, which provides a bold and innovative bridge between decision and game theories. It is designing novel algorithms that utilize approximate and error-bounded solutions of partially observable Markov decision processes for computing approximate finite state equilibrium in games with increasing dimensions.
This research is contributing insights for broader classes of games such as stochastic games with noisy signals. The interdisciplinary outcomes of this research are being integrated into courses and conference tutorials on multiagent decision making for dissemination. New international research collaborations with eminent multiagent researchers in Japan are being established.
This research is bringing together the disciplines of decision and game theories with mutual benefit. Key outcomes include scalable algorithms for solving highly complex games thereby contributing to the understanding of sophisticated interactions under uncertainty. Applications include analyzing auctions without release of public information, covert price wars between firms, and managing resource congestion.
