Decision-Making Among Bounded Rational Agents
Junhong Xu, Durgakant Pushp, Kai Yin, Lantao Liu

TL;DR
This paper introduces a game-theoretic framework incorporating bounded rationality via information theory, enabling robots to predict and adapt to sub-optimal behaviors of other agents under computational constraints.
Contribution
It proposes a novel bounded rationality model using KL-divergence to represent agents' limited information processing, with an efficient importance sampling solution.
Findings
Framework effectively models various rationality levels of agents.
Robots can compute strategies considering other agents' sub-optimal behaviors.
Experimental results show improved navigation in multi-robot scenarios.
Abstract
When robots share the same workspace with other intelligent agents (e.g., other robots or humans), they must be able to reason about the behaviors of their neighboring agents while accomplishing the designated tasks. In practice, frequently, agents do not exhibit absolutely rational behavior due to their limited computational resources. Thus, predicting the optimal agent behaviors is undesirable (because it demands prohibitive computational resources) and undesirable (because the prediction may be wrong). Motivated by this observation, we remove the assumption of perfectly rational agents and propose incorporating the concept of bounded rationality from an information-theoretic view into the game-theoretic framework. This allows the robots to reason other agents' sub-optimal behaviors and act accordingly under their computational constraints. Specifically, bounded rationality directly…
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Taxonomy
TopicsRisk and Portfolio Optimization · Decision-Making and Behavioral Economics · Bayesian Modeling and Causal Inference
