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Abstract We consider the problem of stopping a diffusion process with a payoff functional that renders the problem time‐inconsistent. We study stopping decisions of naïve agents who reoptimize continuously in time, as well as equilibrium strategies of sophisticated agents who anticipate but lack control over their future selves' behaviors. When the state process is one dimensional and the payoff functional satisfies some regularity conditions, we prove that any equilibrium can be obtained as a fixed point of an operator. This operator represents strategic reasoning that takes the future selves' behaviors into account. We then apply the general results to the case when the agents distort probability and the diffusion process is a geometric Brownian motion. The problem is inherently time‐inconsistent as the level of distortion of a same event changes over time. We show how the strategic reasoning may turn a naïve agent into a sophisticated one. Moreover, we derive stopping strategies of the two types of agent for various parameter specifications of the problem, illustrating rich behaviors beyond the extreme ones such as “never‐stopping” or “never‐starting.”
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Public and Private Affairs in Strategic Reasoning
Do agents know each others’ strategies? In multi-process software construction, each process has access to the processes already constructed; but in typical human-robot interactions, a human may not announce its strategy to the robot (indeed, the human may not even know their own strategy). This question has often been overlooked when modeling and reasoning about multi-agent systems. In this work, we study how it impacts strategic reasoning.To do so we consider Strategy Logic (SL), a well-established and highly expressive logic for strategic reasoning. Its usual semantics, which we call “white-box semantics”, models systems in which agents “broadcast” their strategies. By adding imperfect information to the evaluation games for the usual semantics, we obtain a new semantics called “black-box semantics”, in which agents keep their strategies private. We consider the model-checking problem and show that the black-box semantics has much lower complexity than white-box semantics for an important fragment of Strategy Logic.
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- Award ID(s):
- 1704883
- PAR ID:
- 10391913
- Date Published:
- Journal Name:
- Proceedings of the 19th International Conference on Principles of Knowledge Representation and Reasoning
- Page Range / eLocation ID:
- 132 to 140
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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- Free Publicly Accessible Full Text
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Accepted Manuscript1.0
- Conference Paper:
- https://doi.org/10.24963/kr.2022/14
