We introduce a 2-round stochastic constraint-satisfaction problem, and show
that its approximation version is complete for (the promise version of) the
complexity class AM. This gives a PCP characterization' of AM analogous to the PCP Theorem for NP. Similar characterizations have been given for higher levels of the Polynomial Hierarchy, and for PSPACE; however, we suggest that the result for AM might be of particular significance for attempts to derandomize this class. To test this notion, we pose some Randomized Optimization Hypotheses’
related to our stochastic CSPs that (in light of our result) would imply
collapse results for AM. Unfortunately, the hypotheses appear over-strong, and
we present evidence against them. In the process we show that, if some language
in NP is hard-on-average against circuits of size 2^{Omega(n)}, then there
exist hard-on-average optimization problems of a particularly elegant form.
All our proofs use a powerful form of PCPs known as Probabilistically
Checkable Proofs of Proximity, and demonstrate their versatility. We also use
known results on randomness-efficient soundness- and hardness-amplification. In
particular, we make essential use of the Impagliazzo-Wigderson generator; our
analysis relies on a recent Chernoff-type theorem for expander walks.

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