AI-driven Prices for Externalities and Sustainability in Production Markets

Understand

Traditional competitive markets do not account for negative externalities; indirect costs that some participants impose on others, such as the cost of over-appropriating a common-pool resource (which diminishes future stock, and thus harvest, for everyone).

• Quantifying appropriate interventions to market prices has proven to be quite challenging.
• 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.
• Our policymaker allows us to tune the prices with regard to diverse objectives such as sustainability and resource wastefulness, fairness, buyers' and sellers' welfare, etc.