We adopt the decision-theoretic principle of expected utility maximization
as a paradigm for designing autonomous rational agents, and present a frame
work that uses this paradigm to determine the choice of coordinated action.
We endow an agent with a specialized representation that captures the agen
t's knowledge about the environment and about the other agents, including i
ts knowledge about their states of knowledge, which can include what they k
now about the other agents, and so on. This reciprocity leads to a recursiv
e nesting of models. Our framework puts forth a representation for the recu
rsive models and, under the assumption that the nesting of models is finite
, uses dynamic programming to solve this representation for the agent's rat
ional choice of action. Using a decision-theoretic approach, our work addre
sses concerns of agent decision-making about coordinated action in unpredic
table situations, without imposing upon agents pre-designed prescriptions,
or protocols, about standard rules of interaction. We implemented our metho
d in a number of domains and we show results of coordination among our auto
mated agents, among human-controlled agents, and among our agents coordinat
ing with human-controlled agents.