We adopt the decision-theoretic principle of expected utility maximization as a paradigm for designing autonomous rational agents, and present a framework that uses this paradigm to determine the choice of coordinated action. We endow an agent with a specialized representation that captures the agent's knowledge about the environment and about the other agents, including its knowledge about their states of knowledge, which can include what they know about the other agents, and so on. This reciprocity leads to a recursive nesting of models. Our framework puts forth a representation for the recursive models and, under the assumption that the nesting of models is finite, uses dynamic programming to solve this representation for the agent's rational choice of action. Using a decision-theoretic approach, our work addresses concerns of agent decision-making about coordinated action in unpredictable situations, without imposing upon agents pre-designed prescriptions, or protocols, about standard rules of interaction. We implemented our method in a number of domains and we show results of coordination among our automated agents, among human-controlled agents, and among our agents coordinating with human-controlled agents.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/44002/1/10458_2004_Article_272540.pd
