When Should a Leader Act Suboptimally? The Role of Inferability in Repeated Stackelberg Games
Mustafa O. Karabag, Sophia Smith, Negar Mehr, David Fridovich-Keil, Ufuk Topcu

TL;DR
This paper investigates how the inferability of a leader's strategy in repeated Stackelberg games affects their performance, showing that less stochastic strategies improve inferability and analyzing the conditions leading to large performance gaps.
Contribution
It introduces the concept of the inferability gap in Stackelberg games and provides bounds based on interaction count and strategy stochasticity, offering insights into strategy design.
Findings
Inferability gap is bounded by interaction number and strategy stochasticity.
Lower stochasticity strategies enhance inferability.
Certain game types may have large inferability gaps despite near-optimal strategies.
Abstract
When interacting with other decision-making agents in non-adversarial scenarios, it is critical for an autonomous agent to have inferable behavior: The agent's actions must convey their intention and strategy. We model the inferability problem using Stackelberg games with observations where a leader and a follower repeatedly interact. During the interactions, the leader uses a fixed mixed strategy. The follower does not know the leader's strategy and dynamically reacts to the statistically inferred strategy based on the leader's previous actions. In the inference setting, the leader may have a lower performance compared to the setting where the follower has full information on the leader's strategy. We refer to the performance gap between these settings as the inferability gap. For a variety of game settings, we show that the inferability gap is upper-bounded by a function of the number…
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Taxonomy
TopicsGame Theory and Voting Systems · Experimental Behavioral Economics Studies · Auction Theory and Applications
