A Rigorous, Operational Formalization of Recursive Modeling

Piotr J. Gmytrasiewicz and Edmund H. Durfee

We present a formalization of the Recursive Modeling Method, which we have previously, somewhat informally, proposed as a method that autonomous artificial agents can use for intelligent coordination and communication with other agents. Our formalism is closely related to models proposed in the area of game theory, but contains new elements that lead to a different solution concept. The advantage of our solution method is that always yields the optimal solution, which is the rational action of the agent in a multi-agent environment, given the agent’s state of knowledge and its preferences, and that it works in realistic cases when agents have only a finite amount of information about the agents they interact with.

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