Chapter 8 · begins on page 307
Many Agents
The models
Each model in the book is stated on one card: who decides, when, with what information and commitment, what they get, what they may do, and the question it answers.
Model A1 · p. 330
Does local bidding reach the centrally optimal assignment, and how would one know?
Model A2 · p. 332
What do the agents agree on, how fast, and who controls the answer?
Model A3 · p. 333
Does the play's average become unexploitable, and what certifies the answer?
Model A4 · p. 335
How much adaptation does a finite memory buy, alone and collectively?
Model A5 · p. 337
Is the plan optimal and provably so; what does losing one unit cost; whose assessment does the alliance end up holding?
What is proved, in words
The book follows each result with one sentence that says what it means without symbols. The formal statement is a click away; the proofs are in the book.
Proposition 8.2 · The auction's outcome, with a certificate; Model A1 · p. 331
Agents bidding for tasks reach the best assignment, and the final prices, with the profits they imply, are the proof: with integer values, a duality gap below one leaves no room for a better assignment.
Proposition 8.4 · Consensus values and rates; Model A2 · p. 332
Repeated local averaging converges on these three graphs, but whose average it reaches depends on the weights: the true mean under balanced weights, a hub-weighted mean otherwise, and a stubborn agent's own value if one never listens.
Proposition 8.6 · Convergence and its failure, measured exactly; Model A3 · p. 334
Learning by best-responding to the opponent's history settles down in the zero-sum game (its measured exploitability falls at every checkpoint, and Robinson's theorem takes it to zero), and in Shapley's example stays far from equilibrium at every computed step, cycling for ever by Shapley's theorem.
Proposition 8.9 · Memory buys expediency; the collective concentrates on the optimum; Model A4 · p. 336
Simple automata that remember only their recent rewards prefer the better action more strongly as their memory grows, and three of them together spend most of their time at a collective optimum that none of them can see.
Proposition 8.11 · Prices certify the plan and bound each withdrawal; the weights decide the assessment; Model A5 · p. 338
The final prices of a patrol auction prove the plan optimal and, without re-solving anything, bound what each member's withdrawal would cost; and an alliance that pools assessments by averaging ends up holding a weighted average whose weights belong to the protocol, or to a member that never updates.
The worked case
From page 319 · sources checked
Watching the Baltic seabed
Can a plan nobody computes centrally be proved optimal; what does one member's withdrawal cost; whose assessment does the alliance end up acting on?
The mapping, the network and what the mathematics licenses →A parallax in history
1874–1875 · Chapter 8 · p. 326
One postal territory, many administrations
Berne, 1874: twenty-one states form one postal territory, each keeping its own postal law.
Eight Baltic Sea Allies undertake to exchange information on incidents; units and laws stay national (Section 8.7 (p. 319)).
The people
Lloyd S. Shapley
1923 – 2016
Mathematician and game theorist. He received his doctorate from Princeton in 1953 under Albert W. Tucker, worked at the RAND Corporation from 1954 to 1981 and then at the University of California, Los Angeles. He introduced stochastic games and the value iteration for their discounted and stopping versions, the value for cooperative games that bears his name, and, with David Gale, the stable-matching algorithm; his 1964 example showed that fictitious play need not converge outside the zero-sum world. He shared the 2012 Nobel Memorial Prize in Economic Sciences with Alvin Roth for the theory of stable allocations and the practice of market design — not for any of the results used in this chapter.
Main works
- “Stochastic games” (PNAS 39, 1953)
- “A value for -person games” (1953)
- “College admissions and the stability of marriage”, with D. Gale (American Mathematical Monthly 69, 1962)
- “Some topics in two-person games” (1964)
Julia Robinson
1919 – 1985
Mathematician. She received her doctorate at Berkeley in 1948 under Alfred Tarski, remained associated with Berkeley and became professor there in 1976. Her 1951 paper proved that in every finite zero-sum game the minimax bounds computed from the fictitious-play frequencies converge to the value — the convergence used in this chapter; the actions themselves need not settle — and her work on Hilbert's tenth problem, with Martin Davis and Hilary Putnam, laid the ground for its negative solution by Yuri Matiyasevich in 1970. She was the first woman elected president of the American Mathematical Society (1983–84).
Main works
- “An iterative method of solving a game” (Annals of Mathematics 54, 1951)
- “The decision problem for exponential Diophantine equations”, with M. Davis and H. Putnam (1961)
Mikhail L. Tsetlin
1924 – 1966
Mathematician and biophysicist, a Moscow State University graduate of 1952, who worked in Moscow, from 1958 in Israel Gelfand's seminar on the boundary of mathematics and physiology. His 1961 paper pioneered the study of finite automata in random media — how trivially simple devices can adapt to unknown environments — and the games of collectives of such automata, including the Goore game proposed in his circle in 1963 and published by others in 1965, showed that collectives can concentrate on an optimum of a function none of them observes; the line was continued by Varshavsky's work on the collective behaviour of automata. His papers were collected posthumously (Nauka, 1969; English edition 1973).
Main works
- “On the behaviour of finite automata in random media” (Avtomatika i telemekhanika 22(10), 1961, pp. 1345–1354)
- Automaton Theory and Modeling of Biological Systems (Academic Press, 1973; Russian original, Nauka, 1969)