Systems Thinking with AI, illustrated chapter reader ยท Chapter 30

30The AI as Policy Searcher

Rank by the worst case among the policies that satisfy every constraint, and say what was excluded.

Four experiments on three named growth policies run against the same uncertainty draws. See the best average excluded by a ceiling, compare checking every draw with checking the average, watch separate draws reverse a close comparison, and see what happens when no policy is admissible.

Every example in these readers is a constructed teaching example built from the chapter's own numbers. Chapters 36 to 39 start from committed public records; their fitted values are inferred from those records, and nothing here is a forecast.

1Demonstration 1 of 4

The best average is excluded

Does the policy with the highest mean win?

The ceiling excludes a policy that breaches it in any draw, whatever its mean. Among those left, the one with the best worst case is recommended.

Equation: recommend, given the evaluations

Three policies set the word-of-mouth strength: push 0.55, steady 0.35, hold 0.15. Each meets the same draws of market size between 700 and 1300. The ceiling is a bound on adopters in every draw.

Predict first. At a ceiling of 1100 and 25 draws, which policy is recommended although it has the lowest mean?

Choose an example

Figure: The best average is excluded. Three horizontal ranges of adopters across 25 draws for push, steady and hold, with a dashed ceiling at 1100; Recommended: Hold, worst case 413.6, mean 533.6.
Support capacity ceiling: 1100, Number of draws: 25
Constructed example: the chapter's three policies, 25 draws and seed 7, with other ceilings and draw counts defined for this reader, compared by the pack's compare and recommend functions.

Calculated values

Push: mean, worst case
934.1, 722.4
Push: draws above the ceiling
4 of 25
Steady: mean, worst case
911.9, 705.5
Steady: draws above the ceiling
4 of 25
Hold: mean, worst case
533.6, 413.6
Hold: draws above the ceiling
0 of 25
Recommendation
Hold

Push has the best mean, 934.1, but its highest draw 1285.6 - 1100 = 185.6 breaches the ceiling in 4 of 25 draws, so it is excluded. Recommended: Hold, worst case 413.6, mean 533.6. Mean given up: 934.1 - 533.6 = 400.5 adopters. Ranking is by worst case among the admissible policies.

Use the idea

Declare the ceiling and its reason before running the search, so an exclusion cannot be argued away afterwards.

Where the conclusion applies

Three named policies, one uncertain quantity, seed 7. The result changes with the number of draws, because fewer draws may miss the draws that breach.

Check your understanding: At a ceiling of 1300 with 25 draws, which policy is recommended?
Push. Its highest draw is 1285.6, which is below 1300, so no policy is excluded, and push has the best worst case, 722.4.

Chapter 30 source: section "The policy with the best average". Demonstration C30-D01.

2Demonstration 2 of 4

Every draw, not the average

What changes when a ceiling is checked on the average instead of on every draw?

A mean can sit well below a ceiling that some draws exceed. Checking the average lets a policy pass that breaches in the worlds where the ceiling is reached.

Equation: adopters equals 1196, above 1100.0, the support capacity ceiling

The ceiling is a bound on adopters. Judged on every draw, one breach excludes a policy. Judged on the average, only the mean is compared with the ceiling.

Predict first. At a ceiling of 1100, which policy does the average-based check recommend?

Choose an example

Figure: Every draw, not the average. Three horizontal ranges of adopters for push, steady and hold with a dashed ceiling at 1100, judged on every draw; Recommended: Hold, worst case 413.6, mean 533.6.
Support capacity ceiling: 1100, How the ceiling is checked: On every draw
Constructed example: the chapter's policies, draws and 1100 ceiling, with other ceilings defined for this reader, judged with the pack's Bound and recommend.

Calculated values

Judged on
every draw
Push
excluded
Steady
excluded
Hold
admissible
Recommendation
Hold
First violation message
adopters=1196 above 1100.0 (support capacity ceiling)

On every draw, push goes above 1100 in 4 of 25 draws (highest 1285.6 - 1100 = 185.6). Recommended: Hold, worst case 413.6, mean 533.6.

Use the idea

Write the constraint to be checked on every draw, because a capacity is exceeded on the days it is exceeded.

Where the conclusion applies

Twenty-five draws of one uncertain quantity. A ceiling above every draw cannot distinguish the two checks.

Check your understanding: At a ceiling of 900, does push pass the average-based check?
No. Its mean is 934.1, and 934.1 - 900 = 34.1 is above the ceiling, so it fails either way.

Chapter 30 source: section "Constraints are not preferences". Demonstration C30-D02.

3Demonstration 3 of 4

Same draws, every policy

Can two close policies be compared on different draws?

Different draws mean different markets, and the market moves adopters by more than the policies' gap. On shared draws the same markets meet both policies, so the gap belongs to the policies.

Equation: compare the policies on the same 25 draws with seed 7

Push and steady differ in word-of-mouth strength, 0.55 and 0.35. Each is evaluated on market-size draws from its seed.

Predict first. With 5 draws each and a different seed for steady, can steady read ahead of push?

Choose an example

Figure: Same draws, every policy. Two dots on a zoomed axis: push at a mean of 934.1 and steady at 911.9, over 25 draws with shared seeds.
Number of draws: 25, Draws met by steady: Shared with push (seed 7)
Constructed example: the chapter's push and steady policies on its market-size range, with separate seeds defined for this reader, run with the pack's evaluate function.

Calculated values

Draws
25
Draw design
shared seed 7
Push mean
934.1
Steady mean
911.9
Push minus steady
22.2

Push minus steady = 934.1 - 911.9 = 22.2. Push reads ahead. With shared draws the same 25 markets meet both policies, so the gap is the policies' alone.

Use the idea

Keep the seed in the run settings so a comparison can be repeated with the same draws.

Where the conclusion applies

Two policies, a few seeds chosen for this reader. Whether a given pair of seeds reverses the order is a property of those seeds, not a rate.

Check your understanding: On shared draws with 25 draws, which policy has the higher mean, and by how much?
Push, by 934.1 - 911.9 = 22.2.

Chapter 30 source: section "Same draws, every policy". Demonstration C30-D03.

4Demonstration 4 of 4

When no policy is admissible

What does the search return when every candidate breaks a constraint?

Both breach the ceiling, so the search returns nothing. Adding a lower-risk policy to the candidate set can restore an option; a ceiling below every draw of every policy cannot be met.

Equation: recommend, given the evaluations

A candidate set is the policies somebody proposed. The ceiling is a bound on adopters, checked on all 25 draws.

Predict first. With only push and steady as candidates and a ceiling of 1100, does the search recommend either?

Choose an example

Figure: When no policy is admissible. Horizontal ranges of adopters for push, steady with a dashed ceiling at 1100; No recommendation: every policy violated a stated constraint.
Candidate policies: Push and steady, Support capacity ceiling: 1100
Constructed example: the chapter's policies and seed, with the ceilings and candidate sets defined for this reader, searched with the pack's recommend function.

Calculated values

Candidates
Push, Steady
Ceiling
1100
Push: draws above the ceiling
4 of 25
Steady: draws above the ceiling
4 of 25
Recommendation
none: every policy violated a stated constraint

Highest draw minus the ceiling: Push 1285.6 - 1100 = 185.6; Steady 1254.6 - 1100 = 154.6. A positive result is a breach. Every policy violated a stated constraint, so the search returns no recommendation. The response is a decision: widen the candidate set, restate the constraint in the open, or report that no option is acceptable.

Use the idea

Treat an empty recommendation as a finding: widen the candidates, restate the constraint in the open, or report that no option is acceptable.

Where the conclusion applies

Policies are fixed settings and the ceiling is fixed. The failure to avoid is quietly relaxing the ceiling to get an answer.

Check your understanding: With all three candidates and a ceiling of 600, which policy is recommended?
None. Hold's highest draw is 732.7, and 732.7 - 600 = 132.7 is a breach, so every policy is excluded.

Chapter 30 source: section "When no policy is admissible". Demonstration C30-D04.