Representing and Solving Decision Problems with Limited Information

  • Authors:
  • Steffen L. Lauritzen;Dennis Nilsson

  • Affiliations:
  • -;-

  • Venue:
  • Management Science
  • Year:
  • 2001

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Abstract

We introduce the notion ofLImitedMemoryInfluenceDiagram (LIMID) to describe multistage decision problems in which the traditional assumption of no forgetting is relaxed. This can be relevant in situations with multiple decision 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 single policy updates and investigate conditions for the resulting strategy to be optimal.