Concepts / Limitations of the Discounted Setting

Limitations of the Discounted Setting

To evaluate whether the proposal solves a limitation, compare its policy rankings with the rankings produced by the average reward objective.

  • Programming

Why Policy Rankings Matter

Two objectives can be written in different ways yet still prefer policies in exactly the same order. That is the key issue here. The proposed discounted objective changes how evaluation is described, but it does not change which policies look better or worse than others when compared with the undiscounted average reward objective.

Key point

To evaluate whether the proposal solves a limitation, compare its policy rankings with the rankings produced by the average reward objective.

From Policy to Average Reward

Begin with a policy. The policy determines the distribution with which states occur under that policy. The average reward objective evaluates the average reward over this policy-dependent state distribution. In other words, the objective is tied to the states that the policy causes to occur and the rewards associated with those states.

PolicyState distributionstates under the policyAverage rewardreward over thedistributiondeterminesevaluates reward over
How does a policy's long-run state distribution determine the average reward it receives?

Adding Discounted Values

The proposed discounted objective follows the same policy-induced state distribution. Its distinctive step is to combine the values associated with those states using discounting. Thus, the proposal does not replace the policy's state distribution with a separate one; it sums discounted values over the distribution with which states occur under the policy.

PolicyState distributionstates under the policyProposed objectivediscounted values over thedistributionState valuesdiscounteddeterminessupplies state weightsare combined using
How are state values combined with the distribution of states visited under a policy to produce the proposed discounted objective?

The important comparison is therefore not simply average reward versus a generic discounted quantity. It is average reward over a policy's state distribution versus discounted values summed over that same policy-dependent distribution.

Comparing the Two Evaluation Lenses

ObjectiveDistribution usedQuantity combined over that distribution
Average reward objectiveThe distribution induced by the policyAverage reward
Proposed discounted objectiveThe distribution induced by the policyDiscounted values

Both objectives use the policy-dependent state distribution, but they describe the evaluated quantity differently.

Average rewardobjectiveaverage rewardPolicy distributionstates under policyProposed discountedobjectivediscounted valuesPolicy distributionstates under policyevaluated bycombined with
What is the difference between averaging rewards according to a policy's state distribution and weighting rewards by discounted future values?

The Ranking Result

Worked example

Comparing Two Policies

Suppose two policies, Policy A and Policy B, are evaluated using both the average reward objective and the proposed discounted objective. What should you compare?

  1. 1
    Step 1: Follow each policy

    Each policy determines the distribution with which states occur under that policy.

  2. 2
    Step 2: Apply the average reward objective

    Evaluate the average reward over each policy's own state distribution.

  3. 3
    Step 3: Apply the proposed discounted objective

    For each policy, sum discounted values over the state distribution induced by that same policy.

  4. 4
    Step 4: Compare the rankings

    The source result is that the proposed discounted objective and the undiscounted average reward objective agree in how they order policies.

Result

The two objectives produce the same policy ordering. The proposed discounted formulation does not create a different preference ordering between Policy A and Policy B.

Policy AAverage rewardrankingpolicy orderingProposed discountedrankingsame policy orderingPolicy Bevaluated byevaluated byevaluated byevaluated by
When two policies are evaluated by the average-reward and proposed discounted objectives, how can their rankings compare or differ?
Key point

Different objective descriptions do not necessarily imply different decisions. Here, the proposed discounted objective orders policies identically to the undiscounted average reward objective.

Why Discounting Is Not Rescued

The proposed objective does not rescue discounting because its construction still combines state values using discounting. It changes the distribution over which those discounted values are summed, making that distribution the one induced by the policy. However, this change does not produce a different policy ordering from the average reward objective. The proposal therefore retains the relevant dependence on discounting without solving the limitation under discussion.

Average rewardobjectivepolicy distributionAverage rewardProposed discountedobjectivesame policy distributionDiscounted valuesevaluatescombines using discounting
Which dependence on the discount factor remains in the proposed objective, and why does it fail to eliminate the limitations of discounting?

Common Interpretation Errors

  • Common mistake

    Assuming that a discounted objective must rank policies differently from an average reward objective.

    What it looks like

    The proposed discounted objective is treated as a fundamentally different decision rule simply because it uses discounted values.

    Why it fails

    The source result is that it orders policies identically to the undiscounted average reward objective.

    Do this instead

    Compare the policy rankings, not only the vocabulary or form used to describe each objective.

  • Common mistake

    Ignoring the policy-induced state distribution.

    What it looks like

    The proposed objective is described as summing discounted values over a fixed distribution unrelated to the policy.

    Why it fails

    The distribution is determined by the policy, and the proposal sums discounted values over that policy-dependent distribution.

    Do this instead

    For every policy, first identify that policy's state distribution, then describe how the objective evaluates quantities over it.

  • Common mistake

    Claiming that using the policy's state distribution removes discounting.

    What it looks like

    The proposal is said to rescue discounting because it uses the states that occur under the policy.

    Why it fails

    The proposed objective still combines the associated state values using discounting.

    Do this instead

    State clearly that the proposal changes the distribution used in the formulation but does not eliminate discounting or alter the resulting policy ordering.

Check Your Understanding

MEDIUM

Explain, in your own words, why the proposed discounted objective can use a policy-dependent state distribution and still fail to rescue discounting.

Hints
  • State what determines the distribution of states.
  • Identify what the average reward objective evaluates over that distribution.
  • Identify what the proposed discounted objective combines over the same distribution.
  • Finish by comparing the policy rankings produced by the two objectives.

What do you think happens?

If the proposed discounted objective and the average reward objective are applied to the same set of policies, should you expect them to produce different policy orderings?

  • Yes, because one objective uses discounting.

  • No, the source result says they order policies identically.

  • Only when the policy determines a state distribution.

Reveal answer
Answer:

No, the proposed discounted objective and the undiscounted average reward objective order policies identically.

The proposed objective sums discounted values over the state distribution induced by each policy, but this formulation does not produce a different policy ordering.

Core Takeaways

  1. 1
    A policy determines the distribution with which states occur under that policy.
  2. 2
    The average reward objective evaluates average reward over the policy's state distribution.
  3. 3
    The proposed discounted objective sums discounted values over that same policy-dependent distribution.
  4. 4
    The two objectives order policies identically.
  5. 5
    Because the proposed objective retains discounting and does not change policy rankings, it does not rescue discounting.

At a glance

  • The average reward objective evaluates average reward over a policy's state distribution.
  • The proposed discounted objective combines discounted state values over the distribution induced by the policy.
  • The proposed objective and the undiscounted average reward objective produce the same policy ordering.
  • Using a policy-dependent distribution does not remove the proposed objective's dependence on discounting.
  • The proposal therefore does not rescue discounting.

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