Set-Up Slide (Do not read.) 1 Monday, August 13, 12 Reasoning About Games Melvin Fitting Opole — August, 2012 2 Monday, August 13, 12 Reasoning About Reasoning About Games Melvin Fitting Opole — August, 2012 3 Monday, August 13, 12 Epistemic game theory tries to analyze how people behave during interactions taking into account their knowledge or beliefs about circumstances of the game, about other players knowledge or beliefs, about other players rationality, about other players knowledge or beliefs about their knowledge or beliefs......... 4 Monday, August 13, 12 I’m a logician. I don’t want to analyze games. I want to analyze the analysis of games. What assumptions lead to what conclusions? What don’t? And why? 5 Monday, August 13, 12 There is a familiar and much examined game called Centipede. Precisely because it is familiar and many people know it, it provides a good subject. I want to examine the logic behind the familiar analysis of Centipede. 6 Monday, August 13, 12 Formal proofs are tools logicians use to establish something follows from something else. X follows from assumptions S if there is a formal proof of X from S. 7 Monday, August 13, 12 Models (semantics) are tools logicians use to show something does not follow from something else. X does not follow from assumptions S if there is a model validating S but not X. 8 Monday, August 13, 12 I will discuss both proofs and semantics. I do not have deep results to present. But I do have tools of versatility and naturalness to show off. 9 Monday, August 13, 12 But first, what is Centipede? A u ? 2, 1 B - u ? 1, 4 A - u B - u ? 4, 3 ? 3, 6 A - u - 5, 8 ? 6, 5 This picture doesn’t really explain anything. Let me talk for a bit. 10 Monday, August 13, 12 Each player has to know the other player “understands the situation.” Each player has to be rational. Each player has to believe each player is rational. Each player has to believe each player believes each player is rational. And so on. 11 Monday, August 13, 12 What does “know” mean? What does “believe” mean? What does “rational” mean? We won’t answer any of these questions. Instead we ask, and try to answer: how do these terms behave in context? Of course the next question is, what is a context. Now let’s begin. 12 Monday, August 13, 12 Logics Background 13 Monday, August 13, 12 Logics of knowledge and belief derive from work of Hintikka (1962). This is now standard machinery. 14 Monday, August 13, 12 Epistemic Logics A finite set of agents, A, B, C, . . . . For each agent A, a modal operator KA Read KA X as agent A knows X 15 Monday, August 13, 12 Axiomatically KA is a normal modal operator Tautologies KA (X X Y) X Y (KA X X KA X Y 16 Monday, August 13, 12 KA Y ) And some or all of the following axiom schemes knowledge vs belief E-1 KA X X, Factivity. E-2 KA X KA KA X, Positive Introspection. E-3 ¬KA X KA ¬KA X, Negative Introspection. commonly assumed 17 Monday, August 13, 12 Typical (and easy) theorem. (KA KB X ^ KC KA Y ) KA (X ^ Y ) (uses Factivity) 18 Monday, August 13, 12 Semantics is Kripke/Hintikka There are states, and a notion of accessibility or indistinguishability for each agent. Accessibility satisfies various conditions depending on whether we want Factivity, or Positive Introspection, or Negative Introspection. I’ll skip the details here. 19 Monday, August 13, 12 The intuitive idea is accessible from for agent A provided if is how things are, A can’t tell the situation from Agent A knows X if X is so in all states A can’t tell from the actual one. 20 Monday, August 13, 12 . hG, RA , . . . , i states accessibility for each agent KA X i↵ X for every 2 G such that RA 21 Monday, August 13, 12 forces Next, games involve actions. There is a logic for this too. 22 Monday, August 13, 12 Dynamic Logic (PDL) Actions: • atomic actions a, b, . . . • (↵; ) is an action; ↵ followed by • (↵ [ ) is an action; non-deterministic choice of ↵ or • ↵⇤ is an action; ↵ repeated some number of times • A? is an action; test for A 23 Monday, August 13, 12 if ↵ is an action and X is a formula then [↵]X is a formula [↵]X is read that X will be true after action ↵ is (non-deterministically) executed h↵iX abbreviates ¬[↵]¬X h↵iX, is read that at least one way of executing action ↵ leaves X true 24 Monday, August 13, 12 Axioms PDL-1 All tautologies (or enough of them) PDL-2 [↵](X Y) ([↵]X [↵]Y ) PDL-3 [↵; ]X ⌘ [↵][ ]X PDL-4 [↵ [ ]X ⌘ ([↵]X ^ [ ]X) PDL-5 [↵⇤ ]X ⌘ (X ^ [↵][↵⇤ ]X) PDL-6 [A?]X ⌘ (A X) and 25 Monday, August 13, 12 Induction: either of the following PDL-7 [↵ ](X ⇤ PDL-8 From X [↵]X) [↵]X infer X 26 Monday, August 13, 12 (X [↵ ]X) ⇤ [↵ ]X ⇤ Rules X X Y X [↵]X 27 Monday, August 13, 12 Y Kripke Semantics: hG, R↵ . . . , i states for each action 28 Monday, August 13, 12 forces Special conditions: • R↵; is the relation product R↵ R . • R↵[ is the relation R↵ [ R . • RA? just in case A. • R↵⇤ is the reflexive and transitive closure of R↵ . 29 Monday, August 13, 12 PDL + E Just combine epistemic (E) and propositional dynamic logics (PDL). This gives us a logic in which we can investigate knowledge/action interplay. 30 Monday, August 13, 12 Possible Additional Conditions There are some connecting conditions between PDL and E that we will sometimes want. 31 Monday, August 13, 12 PDLE-1 [↵]Ki X Ki [↵]X (No Learning) If an agent knows X after ↵ is performed, the agent already knew that X would be true after ↵, so executing the action brought no new knowledge. 1 q ↵- q 2 i ? ? q - q 3 ↵ 4 i 32 Monday, August 13, 12 PDLE-2 Ki [↵]X [↵]Ki X (Perfect Recall) If an agent knows X must be so after action ↵, then after ↵ the agent knows that X. 1 q ↵- q 2 i ? ? q - q 3 ↵ 4 i 33 Monday, August 13, 12 PDLE-3 h↵iKi X Ki h↵iX (Reasoning Ability) If an agent could know X after action ↵, the agent is able to figure that out and so knows now that X could be the case after ↵. 1 q ↵- q 2 i ? ? q - q 3 ↵ 4 i 34 Monday, August 13, 12 There is also the very important notion of Common Knowledge 35 Monday, August 13, 12 EX abbreviates KA X ^ KB X ^ KC X ^ . . . Everybody knows X. Informally, CX means X and EX and EEX and EEEX and . . . 36 Monday, August 13, 12 Axiomatically CK-1 (Axiom Scheme) CX CK-2 (Rule) X E(Y ^ X) X CY 37 Monday, August 13, 12 E(X ^ CX) Common knowledge has been much analyzed. Time presses, and I won’t go into details here. 38 Monday, August 13, 12 Our Cross-Logic conditions generally extend to common knowledge too. If each agent satisfies Reasoning Ability for action ↵ then h↵iCX Ch↵iX If each agent satisfies No Learning for action ↵ [↵]CX C[↵]X 39 Monday, August 13, 12 One condition doesn’t quite make it, though this is a rather technical point. If each agent satisfies Perfect Recall for action ↵ then for every n n C[↵]X [↵]E X But C[↵]X [↵]CX doesn’t seem to follow We will sometimes assume it as Extended Perfect Recall 40 Monday, August 13, 12 Next we could discuss General Game Tree Knowledge But time presses. I’ll go directly to Centipede. A more general is presentation is possible however. 41 Monday, August 13, 12 Centipede (finally) A1 u R ? 2, 1 B2 - u ? 1, 4 R A3 - u R ? 4, 3 B4 - u ? 3, 6 R A5 - u - 5, 8 ? 6, 5 The diagram doesn’t show anything epistemic. 42 Monday, August 13, 12 A1 u ? 2, 1 Centipede games could be of any length. B A B A5 2 3 4 R R R R - u - u - u - u We?want our ? analysis to?work for ? all. 1, 4 4, 3 3, 6 6, 5 Keep that in mind as we go on. 43 Monday, August 13, 12 - 5, 8 Basic Stuff Players know the game A1 u ? 2, 1 R B Apropositional B4 letters. A5 2 3 R R R Dedicated - u - u - u - u ? 1, 4 A — player A is to move B — player B is to move ? 4, 3 ? 3, 6 ? 6, 5 Axioms KG-1 A _ B KG-4 B KB B KG-2 ¬(A ^ B) KG-5 A KB A KG-3 A KG-6 B KA B KA A 44 Monday, August 13, 12 - 5, 8 Transitions A1 u R B2 - u A3 B4 A5 R A move R R is a-thing. - u - u u - 5, 8 A game transition is an action. ? 2, 1 ? 1, 4 A ? choice 4, 3 ? move 3, 6 of (generally) triggers an action. ? 6, 5 Moves are represented by propositional letters. Transitions are represented by PDL actions. 45 Monday, August 13, 12 Moves A1 u ? 2, 1 R B2 - u ? 1, 4 A3 B4 A5 R R - u - u - u There are two moves. R We write ri and do. ? 4, 3 KGcent-7 ? 3, 6 ri _ do KGcent-8 ¬(ri ^ do) 46 Monday, August 13, 12 ? 6, 5 - 5, 8 A1 u ? 2, 1 There is one atomic transition, move right, R. (Moving down is not a transition it is a game-ender.) R B2 - u ? 1, 4 R A3 - u R KGcent-9 A KGcent-10 B ? 4, 3 47 Monday, August 13, 12 B4 - u [R]B [R]A ? 3, 6 R A5 - u ? 6, 5 - 5, 8 A1 u ? 2, 1 R At a terminal state, all plays end the game. B2 NoRtransitions A3 4 R areBpossible. R - u ? 1, 4 - u - u [R]? says terminal ? 4, 3 ? 3, 6 hRi> says not terminal 48 Monday, August 13, 12 A5 - u ? 6, 5 - 5, 8 A1 u ? 2, 1 R B2 A3 B4 A5 R R R - u KGcent-11 - u [R]? - KuA [R]? - u KGcent-12 [R]? ? ? 1, 4KGcent-13 4, 3 hRi> KGcent-14 hRi> 49 Monday, August 13, 12 KB [R]? ? ? 3,K6A hRi> 6, 5 KB hRi> - 5, 8 A1 u ? 2, 1 B2 A3 R Aterminal state is u - u R ? 1, 4 B4 A5 R always-possible to-reach. - 5, 8 u u R ? 4, 3 ? 3, 6 ⇤ KGcent-15 hR i[R]? 50 Monday, August 13, 12 ? 6, 5 Rationality Rationality is operational. A player who is rational and who knows what the best move is, given the limitations imposed by the knowledge the player possesses, will play that best move. 51 Monday, August 13, 12 The best known move is represented by a propositional letter. It is written in a special format, kbestA (do). Move do is the best known move for player A. Similarly for ri, and for player B. 52 Monday, August 13, 12 Rationality for a player is also represented by a propositional letter: raA or raB 53 Monday, August 13, 12 Rationality conditions RCcent-A (A ^ KA kbestA (do) ^ raA ) do (A ^ KA kbestA (ri) ^ raA ) ri RCcent-B (B ^ KB kbestB (do) ^ raB ) do (B ^ KB kbestB (ri) ^ raB ) ri 54 Monday, August 13, 12 Rationality persists: RPcent-A raA [R]raA RPcent-B raB [R]raB 55 Monday, August 13, 12 We can’t represent payoffs directly. We don’t have arithmetic in our logic. But payoffs determine local strategy, and that can be represented. 56 Monday, August 13, 12 Endgame strategy: EScent-A A ([R]? kbestA (do)) EScent-B B ([R]? kbestB (do)) If play is at the end node, down is always best. 57 Monday, August 13, 12 Midgame strategy MScent-A A (KA hRido kbestA (do)) (A ^ hRi>) (KA [R]ri kbestA (ri)) MScent-B B (KB hRido kbestB (do)) (B ^ hRi>) (KB [R]ri kbestB (ri)) If the player to move knows that it is possible to move right, but then the next move will be down, then the best known move is down. 58 Monday, August 13, 12 And What Follows? Let ra abbreviate raA ^ raB . Cra Cdo is provable under the assumptions: 59 Monday, August 13, 12 The general PDL + E axiom schemes and rules. The Centipede game tree knowledge axioms KGcent-1 – KGcent-15. The Centipede rationality axioms. RCcent-A and RCcent-B (a rational player plays the best move according to the player’s knowledge) 60 Monday, August 13, 12 RPcent-A and RPcent-B (rationality persists) MScent-A and MScent-B (mid game strategy) EScent-A and EScent-B (end game strategy) 61 Monday, August 13, 12 Also some cross conditions: PDLE-3, Reasoning Ability h↵iCX Ch↵iX CK-3, Extended Perfect Recall C[↵]X [↵]CX 62 Monday, August 13, 12 What is not needed Factivity Positive Introspection Negative Introspection NO introspection is needed 63 Monday, August 13, 12 Belief matters, not knowledge I omit the proofs, and instead turn to 64 Monday, August 13, 12 Semantics • Player uncertainty needs representation. • Game states are not the same thing as epistemic states. • Game states are composed of epistemic states. • A game transition is a set of transitions from epistemic states to epistemic states. Monday, August 13, 12 An augmented game tree is a game tree showing the epistemic states “inside” the game states. 66 Monday, August 13, 12 For example A - x ↵ B - x - not certain what epistemic state B A B is in after ↵ d P ↵ - d d ↵ P epistemic state for A epistemic states for B A has no uncertainty B uncertain of P 67 Monday, August 13, 12 [↵]¬KB P [↵]¬KB ¬P at the state A B - Pd - d ↵↵ Pd KA [↵]¬KB P KA [↵]¬KB ¬P 68 Monday, August 13, 12 ¬KB P ¬KB ¬P at both states For example A - x ↵ B - x B A ↵ : Pd ? - d d P6 ↵ z Pd epistemic state for A epistemic states for B 69 Monday, August 13, 12 - h↵iKB P , true h↵i¬KB P , true ¬h↵iKB ¬P , true B A ↵ : Pd ? - d d P6 ↵ z Pd So KA [h↵iKB P ^ h↵i¬KB P ^ ¬h↵iKB ¬P ] 70 Monday, August 13, 12 Formal rules for evaluation of formulas at states can be given. We skip that here. A formula is valid in one of these structures if it evaluates to true at every epistemic state. 71 Monday, August 13, 12 A Three Move Version A1 u ? 2, 1 B2 - u A3 - u ? 1, 4 ? 4, 3 72 Monday, August 13, 12 - 3, 6 Now we consider an augmented version of this. The three game nodes are expanded, and labeled G1, G2, and G3 Each game node has internal structure, three epistemic states labeled E1, E2, and E3. Ellipses represent accessibility. 73 Monday, August 13, 12 A1 u ? 2, 1 B2 - u A3 - u ? 1, 4 ? 4, 3 74 Monday, August 13, 12 - 3, 6 75 Monday, August 13, 12 What is valid here? 76 Monday, August 13, 12 For both players Factivity, positive and negative introspection at each epistemic state. But more. Remember No Learning? [↵]Ki X Ki [↵]X 1 q ↵- q 2 i ? ? q - q 3 ↵ 4 i Easy to check. 77 Monday, August 13, 12 78 Monday, August 13, 12 In fact, No Learning, Perfect Recall, and Reasoning Ability, all hold for each player, at each epistemic state, as does Extended Perfect Recall. Knowledge of the game conditions holds at each epistenic state. 79 Monday, August 13, 12 Midgame and endgame strategy axioms hold. As does persistence of rationality. Briefly, we have (strong) versions of all our axioms true at every epistemic state. 80 Monday, August 13, 12 But at (G1, E1) Cra is not true. If it were, ra would be true at every reachable epistemic state but raA is not true at (G1, E3). 81 Monday, August 13, 12 82 Monday, August 13, 12 However Era is true at (G1, E1) that is, KA raA ^ KA raB ^ KB raA ^ KB raB Everybody knows that all players are rational. 83 Monday, August 13, 12 do is not true at (G1, E1), so Era do is not derivable from our axioms for Centipede, together with strong knowledge assumptions. Common knowledge, not mutual knowledge, is needed. 84 Monday, August 13, 12 Of course this is not a new point. But we do have sufficient formal machinery to establish it rigorously. 85 Monday, August 13, 12 Formal proofs show that for Centipede Factivity, Positive introspection Negative introspection are not needed. Semantics shows that common knowledge of rationality is needed. 86 Monday, August 13, 12 What I’ve presented is a case study of appropriate machinery to examine some of the generally informal arguments of game theory. 87 Monday, August 13, 12 One can use this machinery to explore quirky directions. For instance, what happens if one or both players always plays irrationally, against his or her best known move? Case studies of other games are called for. 88 Monday, August 13, 12 There are more games to be played with games, but this is enough for now. Thank you. 89 Monday, August 13, 12 90 Monday, August 13, 12
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