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Strategic Exploration for Innovation

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 Added by Shangen Li
 Publication date 2021
  fields Economy
and research's language is English
 Authors Shangen Li




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We analyze a game of technology development where players allocate resources between exploration, which continuously expands the public domain of available technologies, and exploitation, which yields a flow payoff by adopting the explored technologies. The qualities of the technologies are correlated and initially unknown, and this uncertainty is fully resolved once the technologies are explored. We consider Markov perfect equilibria with the quality difference between the best available technology and the latest technology under development as the state variable. In all such equilibria, while the players do not fully internalize the benefit of failure owing to free-riding incentives, they are more tolerant of failure than in the single-agent optimum thanks to an encouragement effect. In the unique symmetric equilibrium, the cost of exploration determines whether free-riding prevails as team size grows. Pareto improvements over the symmetric equilibrium can be achieved by asymmetric equilibria where players take turns performing exploration.



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The quest to understand the fundamental building blocks of nature and their interactions is one of the oldest and most ambitious of human scientific endeavors. Facilities such as CERNs Large Hadron Collider (LHC) represent a huge step forward in this quest. The discovery of the Higgs boson, the observation of exceedingly rare decays of B mesons, and stringent constraints on many viable theories of physics beyond the Standard Model (SM) demonstrate the great scientific value of the LHC physics program. The next phase of this global scientific project will be the High-Luminosity LHC (HL-LHC) which will collect data starting circa 2026 and continue into the 2030s. The primary science goal is to search for physics beyond the SM and, should it be discovered, to study its details and implications. During the HL-LHC era, the ATLAS and CMS experiments will record circa 10 times as much data from 100 times as many collisions as in LHC Run 1. The NSF and the DOE are planning large investments in detector upgrades so the HL-LHC can operate in this high-rate environment. A commensurate investment in R&D for the software for acquiring, managing, processing and analyzing HL-LHC data will be critical to maximize the return-on-investment in the upgraded accelerator and detectors. The strategic plan presented in this report is the result of a conceptualization process carried out to explore how a potential Scientific Software Innovation Institute (S2I2) for High Energy Physics (HEP) can play a key role in meeting HL-LHC challenges.
The study of strategic or adversarial manipulation of testing data to fool a classifier has attracted much recent attention. Most previous works have focused on two extreme situations where any testing data point either is completely adversarial or always equally prefers the positive label. In this paper, we generalize both of these through a unified framework for strategic classification, and introduce the notion of strategic VC-dimension (SVC) to capture the PAC-learnability in our general strategic setup. SVC provably generalizes the recent concept of adversarial VC-dimension (AVC) introduced by Cullina et al. arXiv:1806.01471. We instantiate our framework for the fundamental strategic linear classification problem. We fully characterize: (1) the statistical learnability of linear classifiers by pinning down its SVC; (2) its computational tractability by pinning down the complexity of the empirical risk minimization problem. Interestingly, the SVC of linear classifiers is always upper bounded by its standard VC-dimension. This characterization also strictly generalizes the AVC bound for linear classifiers in arXiv:1806.01471.
We consider the problem of a decision-maker searching for information on multiple alternatives when information is learned on all alternatives simultaneously. The decision-maker has a running cost of searching for information, and has to decide when to stop searching for information and choose one alternative. The expected payoff of each alternative evolves as a diffusion process when information is being learned. We present necessary and sufficient conditions for the solution, establishing existence and uniqueness. We show that the optimal boundary where search is stopped (free boundary) is star-shaped, and present an asymptotic characterization of the value function and the free boundary. We show properties of how the distance between the free boundary and the diagonal varies with the number of alternatives, and how the free boundary under parallel search relates to the one under sequential search, with and without economies of scale on the search costs.
We present a type system for strategy languages that express program transformations as compositions of rewrite rules. Our row-polymorphic type system assists compiler engineers to write correct strategies by statically rejecting non meaningful compositions of rewrites that otherwise would fail during rewriting at runtime. Furthermore, our type system enables reasoning about how rewriting transforms the shape of the computational program. We present a formalization of our language at its type system and demonstrate its practical use for expressing compiler optimization strategies. Our type system builds the foundation for many interesting future applications, including verifying the correctness of program transformations and synthesizing program transformations from specifications encoded as types.
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