The paper
“Optimal control of two-player systems with output feedback” by me and Sanjay Lall was submitted to Transactions on Automatic Control. This paper was a long time in the making, and represents the culmination of several years of work. The paper explores a very fundamental control problem, which we call the
two-player problem. Two decision-making agents must cooperatively control a system. Roughly speaking, one agent is more informed, while the other is more influential. In this paper, we give a complete characterization of when stabilization is possible, and parameterize all stabilizing controllers. We also show how to efficiently construct the optimal controller and quantify the cost due to the information constraint (as compared to a scenario where both agents are equally informed and influential). Two major facts come to light in this work. First, the optimal two-player controller has a
separation structure that bears resemblance to the observer-controller structure present in classical (centralized) control theory. The difference here is that the associated estimation and controller gains turn out to be coupled in an intricate way. Second, finding these coupled gains can be reduced to solving a set of linear equations, and thus can be done in an efficient manner. Our paper is also available on
arXiv.