Related papers: What does Newcomb's paradox teach us?
Today's AI recommendation algorithms produce a human dilemma between euphoria and freedom. To elaborate, four ways that recommenders reshape experience are delineated. First, the human experience of convenience is tuned to euphoric…
After experimenting with a number of non-probabilistic methods for dealing with uncertainty many researchers reaffirm a preference for probability methods [1] [2], although this remains controversial. The importance of being able to form…
This paper introduces a novel criterion, persuasiveness, to select equilibria in signaling games. In response to the Stiglitz critique, persuasiveness focuses on the comparison across equilibria. An equilibrium is more persuasive than an…
The St. Petersburg paradox is the oldest paradox in decision theory and has played a pivotal role in the introduction of increasing concave utility functions embodying risk aversion and decreasing marginal utility of gains. All attempts to…
Learning from repeated play in a fixed two-player zero-sum game is a classic problem in game theory and online learning. We consider a variant of this problem where the game payoff matrix changes over time, possibly in an adversarial…
In the ultimatum game, the challenge is to explain why responders reject non-zero offers thereby defying classical rationality. Fairness and related notions have been the main explanations so far. We explain this rejection behavior via the…
When subjected to automated decision-making, decision subjects may strategically modify their observable features in ways they believe will maximize their chances of receiving a favorable decision. In many practical situations, the…
We study a modification of the so-called Parrondo's paradox where a large number of individuals choose the game they want to play by voting. We show that it can be better for the players to vote randomly than to vote according to their own…
Human decision behaviour is quite diverse. In many games humans on average do not achieve maximal payoff and the behaviour of individual players remains inhomogeneous even after playing many rounds. For instance, in repeated prisoner…
In this article, I will present a paradox whose purpose is to draw your attention to an important topic in finance, concerning the non-independence of the financial returns (non-ergodic hypothesis). In this paradox, we have two people…
This paper studies a game in which an informed sender with state-independent preferences uses verifiable messages to convince a receiver to choose an action from a finite set. We characterize the equilibrium outcomes of the game and compare…
The prescriptions of our two most prominent strands of decision theory, evidential and causal, differ in a general class of problems known as Newcomb problems. In these, evidential decision theory prescribes choosing a dominated act.…
The possible impact of algorithmic recommendation on the autonomy and free choice of Internet users is being increasingly discussed, especially in terms of the rendering of information and the structuring of interactions. This paper aims at…
In game theory, the notion of a player's beliefs about the game players' beliefs about other players' beliefs arises naturally. In this paper, we present a non-self-referential paradox in epistemic game theory which shows that completely…
Given two sets of data which lead to a similar statistical conclusion, the Simpson Paradox describes the tactic of combining these two sets and achieving the opposite conclusion. Depending upon the given data, this may or may not succeed.…
Agents' judgment depends on perception and previous knowledge. Assuming that previous knowledge depends on perception, we can say that judgment depends on perception. So, if judgment depends on perception, can agents judge that they have…
Bayesian persuasion studies how an informed sender should partially disclose information to influence the behavior of a self-interested receiver. Classical models make the stringent assumption that the sender knows the receiver's utility.…
This paper explores the use of Generative Pre-trained Transformers (GPT) in strategic game experiments, specifically the ultimatum game and the prisoner's dilemma. I designed prompts and architectures to enable GPT to understand the game…
Objective: This paper develops a theoretical framework explaining when and why AI explanations enhance versus impair human decision-making. Background: Transparency is advocated as universally beneficial for human-AI interaction, yet…
We study the classic divide-and-choose method for equitably allocating divisible goods between two players who are rational, self-interested Bayesian agents. The players have additive values for the goods. The prior distributions on those…