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.

There is available an ever-increasing variety of procedures for managing uncertainty. These methods are discussed in the literature of artificial intelligence, as well as in the literature of philosophy of science. Heretofore these methods have been evaluated by intuition, discussion, and the general philosophical method of argument and counterexample. Almost any method of uncertainty management will have the property that in the long run it will deliver numbers approaching the relative frequency of the kinds of events at issue. To find a measure that will provide a meaningful evaluation of these treatments of uncertainty, we must look, not at the long run, but at the short or intermediate run. Our project attempts to develop such a measure in terms of short or intermediate length performance. We represent the effects of practical choices by the outcomes of bets offered to agents characterized by two uncertainty management approaches: the subjective Bayesian approach and the Classical confidence interval approach. Experimental evaluation suggests that the confidence interval approach can outperform the subjective approach in the relatively short run.

Poker is ideal for testing automated reasoning under uncertainty. It introduces uncertainty both by physical randomization and by incomplete information about opponents hands.Another source OF uncertainty IS the limited information available TO construct psychological models OF opponents, their tendencies TO bluff, play conservatively, reveal weakness, etc. AND the relation BETWEEN their hand strengths AND betting behaviour. ALL OF these uncertainties must be assessed accurately AND combined effectively FOR ANY reasonable LEVEL OF skill IN the game TO be achieved, since good decision making IS highly sensitive TO those tasks.We describe our Bayesian Poker Program(BPP), which uses a Bayesian network TO model the programs poker hand, the opponents hand AND the opponents playing behaviour conditioned upon the hand, and betting curves which govern play given a probability of winning. The history of play with opponents is used to improve BPPs understanding OF their behaviour.We compare BPP experimentally WITH : a simple RULE - based system; a program which depends exclusively ON hand probabilities(i.e., without opponent modeling); AND WITH human players.BPP has shown itself TO be an effective player against ALL these opponents, barring the better humans.We also sketch out SOME likely ways OF improving play.

The clique tree algorithm is the standard method for doing inference in Bayesian networks. It works by manipulating clique potentials - distributions over the variables in a clique. While this approach works well for many networks, it is limited by the need to maintain an exact representation of the clique potentials. This paper presents a new unified approach that combines approximate inference and the clique tree algorithm, thereby circumventing this limitation. Many known approximate inference algorithms can be viewed as instances of this approach. The algorithm essentially does clique tree propagation, using approximate inference to estimate the densities in each clique. In many settings, the computation of the approximate clique potential can be done easily using statistical importance sampling. Iterations are used to gradually improve the quality of the estimation.

The paper is a second in a series of two papers evaluating the power of a new scheme that generates search heuristics mechanically. The heuristics are extracted from an approximation scheme called mini-bucket elimination that was recently introduced. The first paper introduced the idea and evaluated it within Branch-and-Bound search. In the current paper the idea is further extended and evaluated within Best-First search. The resulting algorithms are compared on coding and medical diagnosis problems, using varying strength of the mini-bucket heuristics. Our results demonstrate an effective search scheme that permits controlled tradeoff between preprocessing (for heuristic generation) and search. Best-first search is shown to outperform Branch-and-Bound, when supplied with good heuristics, and sufficient memory space.

We introduce utility-directed procedures for mediating the flow of potentially distracting alerts and communications to computer users. We present models and inference procedures that balance the context-sensitive costs of deferring alerts with the cost of interruption. We describe the challenge of reasoning about such costs under uncertainty via an analysis of user activity and the content of notifications. After introducing principles of attention-sensitive alerting, we focus on the problem of guiding alerts about email messages. We dwell on the problem of inferring the expected criticality of email and discuss work on the Priorities system, centering on prioritizing email by criticality and modulating the communication of notifications to users about the presence and nature of incoming email.

We outline a method to estimate the value of computation for a flexible algorithm using empirical data. To determine a reasonable trade-off between cost and value, we build an empirical model of the value obtained through computation, and apply this model to estimate the value of computation for quite different problems. In particular, we investigate this trade-off for the problem of constructing policies for decision problems represented as influence diagrams. We show how two features of our anytime algorithm provide reasonable estimates of the value of computation in this domain.

Markov decisions processes (MDPs) are becoming increasing popular as models of decision theoretic planning. While traditional dynamic programming methods perform well for problems with small state spaces, structured methods are needed for large problems. We propose and examine a value iteration algorithm for MDPs that uses algebraic decision diagrams(ADDs) to represent value functions and policies. An MDP is represented using Bayesian networks and ADDs and dynamic programming is applied directly to these ADDs. We demonstrate our method on large MDPs (up to 63 million states) and show that significant gains can be had when compared to tree-structured representations (with up to a thirty-fold reduction in the number of nodes required to represent optimal value functions).

We present a new abductive, probabilistic theory of plan recognition. This model differs from previous plan recognition theories in being centered around a model of plan execution: most previous methods have been based on plans as formal objects or on rules describing the recognition process. We show that our new model accounts for phenomena omitted from most previous plan recognition theories: notably the cumulative effect of a sequence of observations of partially-ordered, interleaved plans and the effect of context on plan adoption. The model also supports inferences about the evolution of plan execution in situations where another agent intervenes in plan execution. This facility provides support for using plan recognition to build systems that will intelligently assist a user.

In this paper, we analyze the relationship between probability and Spohn's theory for representation of uncertain beliefs. Using the intuitive idea that the more probable a proposition is, the more believable it is, we study transformations from probability to Sphonian disbelief and vice-versa. The transformations described in this paper are different from those described in the literature. In particular, the former satisfies the principles of ordinal congruence while the latter does not. Such transformations between probability and Spohn's calculi can contribute to (1) a clarification of the semantics of nonprobabilistic degree of uncertain belief, and (2) to a construction of a decision theory for such calculi. In practice, the transformations will allow a meaningful combination of more than one calculus in different stages of using an expert system such as knowledge acquisition, inference, and interpretation of results.