Adopting a risk-aware utility model for repeated games of chance

Nathaniel Gemelli, Jeffrey Hudack, Jae Oh

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

We present a risk-aware utility model for action selection in 2-player, non-cooperative, repeated games of chance. Our model augments expected utility calculations and adapts to changes in accumulated utility, demonstrating rational game play. Motivated by risk aversion and the utility of wealth, our model is parameterized by an agent's wealth, the payoffs of a game, and the probability associated with gain and loss. Using expected utility combined with our model, we can impose desired behavior onto an agent that mimics more closely the types of behaviors we see in social and economic situations where risk is involved. We define our model theoretically and present empirical results showing the effectiveness of a risk-aware utility model against a Nash equilibrium mixed strategy in a repeated game of chance.

Original languageEnglish (US)
Title of host publicationSTAIRS 2012 - Proceedings of the Sixth Starting AI Researchers' Symposium
PublisherIOS Press
Pages113-124
Number of pages12
ISBN (Print)9781614990956
DOIs
StatePublished - 2012

Publication series

NameFrontiers in Artificial Intelligence and Applications
Volume241
ISSN (Print)0922-6389

Keywords

  • expected utility
  • game theory
  • risk aversion
  • utility theory

ASJC Scopus subject areas

  • Artificial Intelligence

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  • Cite this

    Gemelli, N., Hudack, J., & Oh, J. (2012). Adopting a risk-aware utility model for repeated games of chance. In STAIRS 2012 - Proceedings of the Sixth Starting AI Researchers' Symposium (pp. 113-124). (Frontiers in Artificial Intelligence and Applications; Vol. 241). IOS Press. https://doi.org/10.3233/978-1-61499-096-3-113