Related papers: Proxyeconomics, the inevitable corruption of proxy…
We develop a market model in which products generate state-dependent potential hidden charges. Firms differ in their ability to realize this potential. Unlike firms, consumers do not observe the state. They try to infer hidden charges from…
Machine learning models play a key role for service providers looking to gain market share in consumer markets. However, traditional learning approaches do not take into account the existence of additional providers, who compete with each…
We explore the striking mathematical connections that exist between market scoring rules, cost function based prediction markets, and no-regret learning. We show that any cost function based prediction market can be interpreted as an…
We analyze a simple model of adaptive competition which captures essential features of a variety of adaptive competitive systems in the social and biological sciences. Each of N agents, at each time step of a game, joins one of two groups.…
We derive an analytical approximation for making quantitative predictions for ecological communities as a function of the mean intensity of the inter-specific competition and the species richness. This method, with only a fraction of the…
The recent trend for acquiring big data assumes that possessing quantitatively more and qualitatively finer data necessarily provides an advantage that may be critical in competitive situations. Using a model complex adaptive system where…
As large language models (LLMs) increasingly operate as autonomous agents in social contexts, evaluating their capacity for prosocial behavior is both theoretically and practically critical. However, existing research has primarily relied…
Algorithmic collusion is an emerging concept in current artificial intelligence age. Whether algorithmic collusion is a creditable threat remains as an argument. In this paper, we propose an algorithm which can extort its human rival to…
Theoretical models of populations and swarms typically start with the assumption that the motion of agents is governed by the local stimuli. However, an intelligent agent, with some understanding of the laws that govern its habitat, can…
As systems trend toward superintelligence, a natural modeling premise is that agents can self-improve along every facet of their own design. We formalize this with a five-axis decomposition and a decision layer, separating incentives from…
A standard assumption for causal inference from observational data is that one has measured a sufficiently rich set of covariates to ensure that within covariate strata, subjects are exchangeable across observed treatment values. Skepticism…
Politicians world-wide frequently promise a better life for their citizens. We find that the probability that a country will increase its {\it per capita} GDP ({\it gdp}) rank within a decade follows an exponential distribution with decay…
Fairness has emerged as an important consideration in algorithmic decision-making. Unfairness occurs when an agent with higher merit obtains a worse outcome than an agent with lower merit. Our central point is that a primary cause of…
Envy, the inclination to compare rewards, can be expected to unfold when inequalities in terms of payoff differences are generated in competitive societies. It is shown that increasing levels of envy lead inevitably to a self-induced…
We propose an SIS competition model describing the propagation of conflicting rumors, such as fake news and its corrections. This simple model captures the interaction between rumor propagation and opinion dynamics, where rumors drive…
Neural Networks are sensitive to various corruptions that usually occur in real-world applications such as blurs, noises, low-lighting conditions, etc. To estimate the robustness of neural networks to these common corruptions, we generally…
In this paper, we propose a two-layer adoption-opinion model to study the diffusion of two competing technologies within a population whose opinions evolve under social influence and adoption-driven feedback. After adopting one technology,…
Corruption is an endemic societal problem with profound implications in the development of nations. In combating this issue, cross-national evidence supporting the effectiveness of the rule of law seems at odds with poorly realized outcomes…
We study economies where consumers interact independently with many monopolists. When consumer valuations over goods are correlated, correlation can distort the induced distribution of consumer surplus (information rents). We identify which…
We consider a model of oligopolistic competition in a market with search frictions, in which competing firms with products of unknown quality advertise how much information a consumer's visit will glean. In the unique symmetric equilibrium…