October 8, 2018 - 1:10pm
Graduate School of Business, McClelland Building, Rm. M105
LUNCH IS PROVIDED AND WILL BE SERVED AT 12:45 PM
Talk title: Artificial Intelligence as Structural Estimation: Economic Interpretations of Deep Blue, Bonanza, and AlphaGo
Abstract: Artificial intelligence (AI) has achieved superhuman performance in a growing number of tasks, but understanding and explaining AI remain challenging. This paper clarifies the connections between machine-learning algorithms to develop AIs and the econometrics of dynamic structural models through the case studies of three famous game AIs. Chess-playing Deep Blue is a calibrated value function, whereas shogi-playing Bonanza is an estimated value function via Rust's (1987) nested fixed-point method. AlphaGo's "supervised-learning policy network" is a deep neural network implementation of Hotz and Miller's (1993) conditional choice probability estimation; its "reinforcement-learning value network" is equivalent to Hotz, Miller, Sanders, and Smith's (1994) conditional choice simulation method. Relaxing these AIs' implicit econometric assumptions would improve their structural interpretability.
Institute for Research in the Social Sciences and Graduate School of Business