Expected Utility Networks
Abstract
We introduce a new class of graphical representations, expected utility networks (EUNs), and discuss some of its properties and potential applications to artificial intelligence and economic theory. In EUNs not only probabilities, but also utilities enjoy a modular representation. EUNs are undirected graphs with two types of arc, representing probability and utility dependencies respectively. The representation of utilities is based on a novel notion of conditional utility independence, which we introduce and discuss in the context of other existing proposals. Just as probabilistic inference involves the computation of conditional probabilities, strategic inference involves the computation of conditional expected utilities for alternative plans of action. We define a new notion of conditional expected utility (EU) independence, and show that in EUNs node separation with respect to the probability and utility subgraphs implies conditional EU independence.
 Publication:

arXiv eprints
 Pub Date:
 January 2013
 DOI:
 10.48550/arXiv.1301.6714
 arXiv:
 arXiv:1301.6714
 Bibcode:
 2013arXiv1301.6714L
 Keywords:

 Computer Science  Computer Science and Game Theory;
 Computer Science  Artificial Intelligence
 EPrint:
 Appears in Proceedings of the Fifteenth Conference on Uncertainty in Artificial Intelligence (UAI1999)