Representing and solving decision problems with limited information

Citation
Sl. Lauritzen et D. Nilsson, Representing and solving decision problems with limited information, MANAG SCI, 47(9), 2001, pp. 1235-1251
Citations number
20
Categorie Soggetti
Management
Journal title
MANAGEMENT SCIENCE
ISSN journal
00251909 → ACNP
Volume
47
Issue
9
Year of publication
2001
Pages
1235 - 1251
Database
ISI
SICI code
0025-1909(200109)47:9<1235:RASDPW>2.0.ZU;2-Z
Abstract
We introduce the notion of LImited Memory Influence Diagram (LIMID) to desc ribe multistage decision problems in which the traditional assumption of no forgetting is relaxed. This can be relevant in situations with multiple de cision makers or when decisions must be prescribed under memory constraints , such as in partially observed Markov decision processes (POMDPs). We give an algorithm for improving any given strategy by local computation of sing le policy updates and investigate conditions for the resulting strategy to be optimal.