The Smoothed Complexity of Policy Iteration for Markov Decision Processes

We show subexponential lower bounds (i.e., 2 Ω(n c ) ) on the smoothed complexity of the classical Howard's Policy Iteration algorithm for Markov Decision Processes. The bounds hold for the total reward and the average reward criteria. The constructions are robust in the sense that the subexponential bound holds not only on the average for independent random perturbations of the MDP parameters (transition probabilities and rewards), but for all arbitrary perturbations within an inverse polynomial range. We show also an exponential lower bound on the worst-case complexity for the simple reachability objective.