Fine-Tuning Games: Bargaining and Adaptation for General-Purpose Models

• URL: http://arxiv.org/abs/2308.04399v2
• Date: Fri, 11 Aug 2023 20:39:23 GMT
• Title: Fine-Tuning Games: Bargaining and Adaptation for General-Purpose Models
• Authors: Benjamin Laufer and Jon Kleinberg and Hoda Heidari
• Abstract summary: Major advances in Machine Learning (ML) and Artificial Intelligence (AI) increasingly take the form of developing and releasing general-purpose models. This paper offers a model of the fine-tuning process where a Generalist brings the technological product to a certain level of performance, and one or more Domain-specialist(s) adapts it for use in a particular domain. Both entities are profit-seeking and incur costs when they invest in the technology, and they must reach a bargaining agreement on how to share the revenue for the technology to reach the market.
• Score: 10.36010442870647
• License: http://creativecommons.org/licenses/by/4.0/
• Abstract: Major advances in Machine Learning (ML) and Artificial Intelligence (AI) increasingly take the form of developing and releasing general-purpose models. These models are designed to be adapted by other businesses and agencies to perform a particular, domain-specific function. This process has become known as adaptation or fine-tuning. This paper offers a model of the fine-tuning process where a Generalist brings the technological product (here an ML model) to a certain level of performance, and one or more Domain-specialist(s) adapts it for use in a particular domain. Both entities are profit-seeking and incur costs when they invest in the technology, and they must reach a bargaining agreement on how to share the revenue for the technology to reach the market. For a relatively general class of cost and revenue functions, we characterize the conditions under which the fine-tuning game yields a profit-sharing solution. We observe that any potential domain-specialization will either contribute, free-ride, or abstain in their uptake of the technology, and we provide conditions yielding these different strategies. We show how methods based on bargaining solutions and sub-game perfect equilibria provide insights into the strategic behavior of firms in these types of interactions, and we find that profit-sharing can still arise even when one firm has significantly higher costs than another. We also provide methods for identifying Pareto-optimal bargaining arrangements for a general set of utility functions.

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