Improving Information from Manipulable Data
Theoretical Economics
2022-12-29 v5
Abstract
Data-based decisionmaking must account for the manipulation of data by agents who are aware of how decisions are being made and want to affect their allocations. We study a framework in which, due to such manipulation, data becomes less informative when decisions depend more strongly on data. We formalize why and how a decisionmaker should commit to underutilizing data. Doing so attenuates information loss and thereby improves allocation accuracy.
Cite
@article{arxiv.1908.10330,
title = {Improving Information from Manipulable Data},
author = {Alex Frankel and Navin Kartik},
journal= {arXiv preprint arXiv:1908.10330},
year = {2022}
}