network effect
Networked Restless Multi-Arm Bandits with Reinforcement Learning
Zhang, Hanmo, Sun, Zenghui, Wang, Kai
Restless Multi-Armed Bandits (RMABs) are a powerful framework for sequential decision-making, widely applied in resource allocation and intervention optimization challenges in public health. However, traditional RMABs assume independence among arms, limiting their ability to account for interactions between individuals that can be common and significant in a real-world environment. This paper introduces Networked RMAB, a novel framework that integrates the RMAB model with the independent cascade model to capture interactions between arms in networked environments. We define the Bellman equation for networked RMAB and present its computational challenge due to exponentially large action and state spaces. To resolve the computational challenge, we establish the submodularity of Bellman equation and apply the hill-climbing algorithm to achieve a $1-\frac{1}{e}$ approximation guarantee in Bellman updates. Lastly, we prove that the approximate Bellman updates are guaranteed to converge by a modified contraction analysis. We experimentally verify these results by developing an efficient Q-learning algorithm tailored to the networked setting. Experimental results on real-world graph data demonstrate that our Q-learning approach outperforms both $k$-step look-ahead and network-blind approaches, highlighting the importance of capturing and leveraging network effects where they exist.
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Beyond Ethics: How Inclusive Innovation Drives Economic Returns in Medical AI
Unnikrishnan, Balagopal, Adames, Ariel Guerra, Adibi, Amin, Peesapati, Sameer, Kocielnik, Rafal, Fischer, Shira, Kasimbazi, Hillary Clinton, Gameiro, Rodrigo, Peluso, Alina, Fernandes, Chrystinne Oliveira, Lange, Maximin, Gondara, Lovedeep, Celi, Leo Anthony
While ethical arguments for fairness in healthcare AI are well-established, the economic and strategic value of inclusive design remains underexplored. This perspective introduces the ``inclusive innovation dividend'' -- the counterintuitive principle that solutions engineered for diverse, constrained use cases generate superior economic returns in broader markets. Drawing from assistive technologies that evolved into billion-dollar mainstream industries, we demonstrate how inclusive healthcare AI development creates business value beyond compliance requirements. We identify four mechanisms through which inclusive innovation drives returns: (1) market expansion via geographic scalability and trust acceleration; (2) risk mitigation through reduced remediation costs and litigation exposure; (3) performance dividends from superior generalization and reduced technical debt, and (4) competitive advantages in talent acquisition and clinical adoption. We present the Healthcare AI Inclusive Innovation Framework (HAIIF), a practical scoring system that enables organizations to evaluate AI investments based on their potential to capture these benefits. HAIIF provides structured guidance for resource allocation, transforming fairness and inclusivity from regulatory checkboxes into sources of strategic differentiation. Our findings suggest that organizations investing incrementally in inclusive design can achieve expanded market reach and sustained competitive advantages, while those treating these considerations as overhead face compounding disadvantages as network effects and data advantages accrue to early movers.
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Modeling AI-Driven Production and Competitiveness A Multi-Agent Economic Simulation of China and the United States
MODELING AI-DRIVEN PRODUCTION AND COMPETITIVENESS: A MUL TI-AGENT ECONOMIC SIMULA TION OF CHINA AND THE UNITED ST A TES Y uxinyue Qian, Jun Liu Beijing University of Posts and Telecommunications liujun@bupt.edu.cn ABSTRACT With the rapid development of artificial intelligence (AI) technology, socio-economic systems are entering a new stage of "human-AI co-creation." Building upon a previously established multi-level intelligent agent economic model, this paper conducts simulation-based comparisons of macroeconomic output evolution in China and the United States under different mechanisms--AI collaboration, network effects, and AI autonomous production. The results show that: (1) when AI functions as an independent productive entity, the overall growth rate of social output far exceeds that of traditional human-labor-based models; (2) China demonstrates clear potential for acceleration in both the expansion of intelligent agent populations and the pace of technological catch-up, offering the possibility of achieving technological convergence or even partial surpassing. This study provides a systematic, model-based analytical framework for understanding AI-driven production system transformation and shifts in international competitiveness, as well as quantitative insights for relevant policy formulation. Comparison 1. INTRODUCTION Since the beginning of the 21st century, the rapid evolution of generative artificial intelligence (AI) and autonomous intelligent agents (AI agents) has profoundly reshaped the operating mechanisms of socioeconomic systems. Overall, the United States maintains a significant lead in core model development and capital investment.
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Socio-Economic Model of AI Agents
Modern socio-economic systems are undergoing deep integration with artificial intelligence technologies. This paper constructs a heterogeneous agent-based modeling framework that incorporates both human workers and autonomous AI agents, to study the impact of AI collaboration under resource constraints on aggregate social output. We build five progressively extended models: Model 1 serves as the baseline of pure human collaboration; Model 2 introduces AI as collaborators; Model 3 incorporates network effects among agents; Model 4 treats agents as independent producers; and Model 5 integrates both network effects and independent agent production. Through theoretical derivation and simulation analysis, we find that the introduction of AI agents can significantly increase aggregate social output. When considering network effects among agents, this increase exhibits nonlinear growth far exceeding the simple sum of individual contributions. Under the same resource inputs, treating agents as independent producers provides higher long-term growth potential; introducing network effects further demonstrates strong characteristics of increasing returns to scale.
Interpretable Network-assisted Random Forest+
Tang, Tiffany M., Levina, Elizaveta, Zhu, Ji
Machine learning algorithms often assume that training samples are independent. When data points are connected by a network, the induced dependency between samples is both a challenge, reducing effective sample size, and an opportunity to improve prediction by leveraging information from network neighbors. Multiple methods taking advantage of this opportunity are now available, but many, including graph neural networks, are not easily interpretable, limiting their usefulness for understanding how a model makes its predictions. Others, such as network-assisted linear regression, are interpretable but often yield substantially worse prediction performance. We bridge this gap by proposing a family of flexible network-assisted models built upon a generalization of random forests (RF+), which achieves highly-competitive prediction accuracy and can be interpreted through feature importance measures. In particular, we develop a suite of interpretation tools that enable practitioners to not only identify important features that drive model predictions, but also quantify the importance of the network contribution to prediction. Importantly, we provide both global and local importance measures as well as sample influence measures to assess the impact of a given observation. This suite of tools broadens the scope and applicability of network-assisted machine learning for high-impact problems where interpretability and transparency are essential.
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