Peer-Aware Cost Estimation in Nonlinear General-Sum Dynamic Games for Mutual Learning and Intent Inference

Human-robot interactions can be modeled as incomplete-information general-sum dynamic games since the objective functions of both agents are not explicitly known to each other. However, solving for equilibrium policies for such games presents a major challenge, especially if the games involve nonlinear underlying dynamics. To simplify the problem, existing work often assumes that one agent is an expert with complete information about its peer, which can lead to biased estimates and failures in coordination. To address this challenge, we propose a nonlinear peer-aware cost estimation (N-PACE) algorithm for general-sum dynamic games. In N-PACE, using iterative linear quadratic (LQ) approximation of the nonlinear general-sum game, each agent explicitly models the learning dynamics of its peer agent while inferring their objective functions, leading to unbiased fast learning in inferring the unknown objective function of the peer agent, which is critical for task completion and safety assurance. Additionally, we demonstrate how N-PACE enables \textbf{intent communication} in such multi-agent systems by explicitly modeling the peer's learning dynamics.