Abstract:
Information design involves a designer with the goal of influencing players’ actions in an incomplete information game through signals generated from a designed probabili...Show MoreMetadata
Abstract:
Information design involves a designer with the goal of influencing players’ actions in an incomplete information game through signals generated from a designed probability distribution so that its objective function is optimized. We consider a setting in which the designer has partial knowledge on players’ payoffs, and wants to maximize social welfare. We address the uncertainty about players’ preferences by formulating a robust information design problem against the worst-case payoffs. When the players have quadratic payoffs that depend on the actions and an unknown payoff-relevant state, and signals on the state that follow a Gaussian distribution, the information design problem under quadratic design objectives can be stated as a semidefinite program (SDP) (Ui, 2020). Given this fact, we consider ellipsoid perturbations over payoff coefficients in linear-quadratic-Gaussian (LQG) games. We show that we can obtain a similar SDP formulation that approximates the social welfare maximization via robust information design. Numerical experiments identify the relation between the uncertainty level on players’ payoffs and the optimal information structures.
Published in: IEEE Control Systems Letters ( Volume: 7)