Related papers: On Directed Information and Gambling
Modelling football outcomes has gained increasing attention, in large part due to the potential for making substantial profits. Despite the strong connection existing between football models and the bookmakers' betting odds, no authors have…
In this paper, we study information cascades on graphs. In this setting, each node in the graph represents a person. One after another, each person has to take a decision based on a private signal as well as the decisions made by earlier…
Use-dependent bias is a phenomenon in human sensorimotor behavior whereby movements become biased towards previously repeated actions. Despite being well-documented, the reason why this phenomenon occurs is not yet clearly understood. Here,…
I pinpoint an interesting similarity between a recent account to rational parsing and the treatment of sequential decisions problems in a dynamical systems approach. I argue that expectation-driven search heuristics aiming at fast…
It is shown in recent studies that in a Stackelberg game the follower can manipulate the leader by deviating from their true best-response behavior. Such manipulations are computationally tractable and can be highly beneficial for the…
We analyze the dynamics of a forecasting game which exhibits the phenomenon of information cascades. Each agent aims at correctly predicting a binary variable and he/she can either look for independent information or herd on the choice of…
We present results on simulations of a stock market with heterogeneous, cumulative information setup. We find a non-monotonic behaviour of traders' returns as a function of their information level. Particularly, the average informed agents…
Expected Fisher information can be found a priori and as a result its inverse is the primary variance approximation used in the design of experiments. This is in contrast to the common claim that the inverse of observed Fisher information…
We consider an environment where players need to decide whether to buy a certain product (or adopt a technology) or not. The product is either good or bad, but its true value is unknown to the players. Instead, each player has her own…
We investigate quantum games in which the information is asymmetrically distributed among the players, and find the possibility of the quantum game outperforming its classical counterpart depends strongly on not only the entanglement, but…
The Bayesian persuasion model studies communication between an informed sender and a receiver with a payoff-relevant action, emphasizing the ability of a sender to extract maximal surplus from his informational advantage. In this paper we…
Observations on the past provide some hints about what will happen in the future, and this can be quantified using information theory. The ``predictive information'' defined in this way has connections to measures of complexity that have…
Quantum guessing games offer a structured approach to analyzing quantum information processing, where information is encoded in quantum states and extracted through measurement. An additional aspect of this framework is the influence of…
Statistical hypothesis testing serves as statistical evidence for scientific innovation. However, if the reported results are intentionally biased, hypothesis testing no longer controls the rate of false discovery. In particular, we study…
There is little doubt in scientific circles that--counting from the origin of life towards today--evolution has led to an increase in the amount of information stored within the genomes of the biosphere. This trend of increasing information…
A non-parametric method for ranking stock indices according to their mutual causal influences is presented. Under the assumption that indices reflect the underlying economy of a country, such a ranking indicates which countries exert the…
Causal reasoning has been an indispensable capability for humans and other intelligent animals to interact with the physical world. In this work, we propose to endow an artificial agent with the capability of causal reasoning for completing…
We develop a model of how information flows into a market, and derive algorithms for automatically detecting and explaining relevant events. We analyze data from twenty-two "political stock markets" (i.e., betting markets on political…
Prices in financial markets exhibit extreme jumps far more often than can be accounted for by external news. Further, magnitudes of price changes are correlated over long times. These so called stylized facts are quantified by scaling laws…
Propagating information to more people through their friends is becoming an increasingly important technology used in domains such as blockchain, advertising, and social media. To incentivize people to broadcast the information, the…