Abstract
We propose a practical approach to computing market prices and allocations via a deep reinforcement learning policymaker agent, operating in an environment of other learning agents. Compared to the idealized market equilibrium outcome -- which we use as a benchmark -- our policymaker is much more flexible, allowing us to tune the prices with regard to diverse objectives such as sustainability and resource wastefulness, fairness, buyers' and sellers' welfare, etc. To evaluate our approach, we design a realistic market with multiple and diverse buyers and sellers. Additionally, the sellers, which are deep learning agents themselves, compete for resources in a common-pool appropriation environment based on bio-economic models of commercial fisheries. We demonstrate that: (a) The introduced policymaker is able to achieve comparable performance to the market equilibrium, showcasing the potential of such approaches in markets where the equilibrium prices can not be efficiently computed. (b) Our policymaker can notably outperform the equilibrium solution on certain metrics, while at the same time maintaining comparable performance for the remaining ones. (c) As a highlight of our findings, our policymaker is significantly more successful in maintaining resource sustainability, compared to the market outcome, in scarce resource environments.
Abstract (translated)
URL
https://arxiv.org/abs/2106.06060
