Time consistent discounting

Tor Lattimore*, Marcus Hutter

*Corresponding author for this work

    Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

    10 Citations (Scopus)

    Abstract

    A possibly immortal agent tries to maximise its summed discounted rewards over time, where discounting is used to avoid infinite utilities and encourage the agent to value current rewards more than future ones. Some commonly used discount functions lead to time-inconsistent behavior where the agent changes its plan over time. These inconsistencies can lead to very poor behavior. We generalise the usual discounted utility model to one where the discount function changes with the age of the agent. We then give a simple characterisation of time-(in)consistent discount functions and show the existence of a rational policy for an agent that knows its discount function is time-inconsistent.

    Original languageEnglish
    Title of host publicationAlgorithmic Learning Theory - 22nd International Conference, ALT 2011, Proceedings
    Pages383-397
    Number of pages15
    DOIs
    Publication statusPublished - 2011
    Event22nd International Conference on Algorithmic Learning Theory, ALT 2011 - Espoo, Finland
    Duration: 5 Oct 20117 Oct 2011

    Publication series

    NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
    Volume6925 LNAI
    ISSN (Print)0302-9743
    ISSN (Electronic)1611-3349

    Conference

    Conference22nd International Conference on Algorithmic Learning Theory, ALT 2011
    Country/TerritoryFinland
    CityEspoo
    Period5/10/117/10/11

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