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In a pilot program during the 2016-17 admissions cycle, the University of California, Berkeley invited many applicants for freshman admission to submit letters of recommendation. We use this pilot as the basis for an observational study of…
We present a method for active inference with partial observations in stochastic systems through incentive design, also known as the leader-follower game. Consider a leader agent who aims to infer a follower agent's type given a finite set…
Our model describes competition between groups driven by the choices of self-interested voters within groups. Within a Poisson voting environment, parties observe aggregate support from groups and can allocate prizes or punishments to them.…
We experimentally study voter turnout in two-tier elections when the electorate consists of multiple groups, such as states. Votes are aggregated within the groups by the winner-take-all rule or the proportional rule, and the group-level…
In a social dilemma game group members are allowed to decide if they contribute to the joint venture or not. As a consequence, defectors, who do not invest but only enjoy the mutual benefit, prevail and the system evolves onto the tragedy…
We consider models of financial markets in which all parties involved find incentives to participate. Strategies are evaluated directly by their virtual wealths. By tuning the price sensitivity and market impact, a phase diagram with…
Algorithms are often used to produce decision-making rules that classify or evaluate individuals. When these individuals have incentives to be classified a certain way, they may behave strategically to influence their outcomes. We develop a…
We develop a general model of discrete choice that incorporates peer effects in preferences and consideration sets. We characterize the equilibrium behavior and establish conditions under which all parts of the model can be recovered from a…
In this Letter, we introduce an aspiration-induced reconnection mechanism into the spatial public goods game. A player will reconnect to a randomly chosen player if its payoff acquired from the group centered on the neighbor does not exceed…
This paper studies the action dynamics of network coordination games with bounded-rational agents. I apply the experience-weighted attraction (EWA) model to the analysis as the EWA model has several free parameters that can capture…
The partition of society into groups, polarization, and social networks are part of most conversations today. How do they influence price competition? We discuss Bertrand duopoly equilibria with demand subject to network effects. Contrary…
We study a discrete fair division problem where $n$ agents have additive valuation functions over a set of $m$ goods. We focus on the well-known $\alpha$-EFX fairness criterion, according to which the envy of an agent for another agent is…
One aspect of intelligence is the ability to restructure your own environment so that the world you live in becomes more beneficial to you. In this paper we investigate how the information-theoretic measure of agent empowerment can provide…
In consequential domains, it is often impossible to compel individuals to take treatment, so that optimal policy rules are merely suggestions in the presence of human non-adherence to treatment recommendations. We study personalized…
We consider a model of socially interacting individuals that make a binary choice in a context of positive additive endogenous externalities. It encompasses as particular cases several models from the sociology and economics literature. We…
Incentivized social advertising, an emerging marketing model, provides monetization opportunities not only to the owners of the social networking platforms but also to their influential users by offering a "cut" on the advertising revenue.…
When opposing parties compete for a prize, the sunk effort players exert during the conflict can affect the value of the winner's reward. These spillovers can have substantial influence on the equilibrium behavior of participants in…
In this paper we study the impact of active participation -- or deliberately seeking out other agents with an aim to convince them -- on the dynamics of consensus formation. For this purpose, we propose an adaptive network model in which…
We consider Incentive Decision Processes, where a principal seeks to reduce its costs due to another agent's behavior, by offering incentives to the agent for alternate behavior. We focus on the case where a principal interacts with a…
Promotions have been trending in the e-commerce marketplace to build up customer relationships and guide customers towards the desired actions. Since incentives are effective to engage customers and customers have different preferences for…