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Counterfactual utilities evaluate decisions not only by the realized outcome under a given decision, but also by the counterfactual outcomes that would arise under alternative decisions. By generalizing standard utility frameworks, they…

Theoretical Economics · Economics 2026-05-08 Benedikt Koch , Kosuke Imai , Tomasz Strzalecki

We study a persuasion problem in which a sender designs an information structure to induce a non-Bayesian receiver to take a particular action. The receiver, who is privately informed about his preferences, is a wishful thinker: he is…

Theoretical Economics · Economics 2023-12-01 Victor Augias , Daniel M. A. Barreto

We address the fundamental problem of selection under uncertainty by modeling it from the perspective of Bayesian persuasion. In our model, a decision maker with imperfect information always selects the option with the highest expected…

Computer Science and Game Theory · Computer Science 2024-10-16 Siddhartha Banerjee , Kamesh Munagala , Yiheng Shen , Kangning Wang

A striking limitation of human cognition is our inability to execute some tasks simultaneously. Recent work suggests that such limitations can arise from a fundamental tradeoff in network architectures that is driven by the sharing of…

Neurons and Cognition · Quantitative Biology 2020-07-08 Yotam Sagiv , Sebastian Musslick , Yael Niv , Jonathan D. Cohen

Interest in how democracies form consensus has increased recently, with statistical physics and economics approaches both suggesting that there is convergence to a fixed point in belief networks, but with fluctuations in opinions when there…

Biological Physics · Physics 2024-05-30 Emily Dong , Sarah Marzen

In the Bayesian approach to probability theory, probability quantifies a degree of belief for a single trial, without any a priori connection to limiting frequencies. In this paper we show that, despite being prescribed by a fundamental…

Quantum Physics · Physics 2009-11-07 Carlton M. Caves , Christopher A. Fuchs , Ruediger Schack

The quantum decision theory is examined in its simplest form of two-condition two-choice setting. A set of inequalities to be satisfied by any quantum conditional probability describing the decision process is derived. Experimental data…

Quantum Physics · Physics 2010-11-22 Taksu Cheon , Taiki Takahashi

Ambiguity-averse decision makers typically dislike not only the presence of ambiguous events but also their increase, contrary to what standard ambiguity models predict. We axiomatically study such a decision maker. She avoids ex ante…

Theoretical Economics · Economics 2026-05-25 Yutaro Akita , Kensei Nakamura

Evaluating hypothetical statements about how the world would be had a different course of action been taken is arguably one key capability expected from modern AI systems. Counterfactual reasoning underpins discussions in fairness, the…

Machine Learning · Computer Science 2022-10-04 Kevin Xia , Yushu Pan , Elias Bareinboim

We study the problem of an agent continuously faced with the decision of placing or not placing trust in an institution. The agent makes use of Bayesian learning in order to estimate the institution's true trustworthiness and makes the…

Physics and Society · Physics 2024-02-06 Benedikt V. Meylahn , Arnoud V. den Boer , Michel Mandjes

Bayesian inference is often utilized for uncertainty quantification tasks. A recent analysis by Xu and Raginsky 2022 rigorously decomposed the predictive uncertainty in Bayesian inference into two uncertainties, called aleatoric and…

Machine Learning · Statistics 2023-07-25 Futoshi Futami , Tomoharu Iwata

On a variety of complex decision-making tasks, from doctors prescribing treatment to judges setting bail, machine learning algorithms have been shown to outperform expert human judgments. One complication, however, is that it is often…

Methodology · Statistics 2018-05-07 Jongbin Jung , Ravi Shroff , Avi Feller , Sharad Goel

Analyzing decision problems under uncertainty commonly relies on idealizing assumptions about the describability of the world, with the most prominent examples being the closed world and the small world assumption. Most assumptions are…

Methodology · Statistics 2025-12-08 Christoph Jansen , Georg Schollmeyer , Thomas Augustin , Julian Rodemann

There have been two major lines of research aimed at capturing resource-bounded players in game theory. The first, initiated by Rubinstein, charges an agent for doing costly computation; the second, initiated by Neyman, does not charge for…

Computer Science and Game Theory · Computer Science 2013-08-20 Joseph Y. Halpern , Rafael Pass , Lior Seeman

Counterfactual explanations are a popular type of explanation for making the outcomes of a decision making system transparent to the user. Counterfactual explanations tell the user what to do in order to change the outcome of the system in…

Machine Learning · Computer Science 2022-11-29 André Artelt , Barbara Hammer

An analyst observes an agent take a sequence of actions. The analyst does not have access to the agent's information and ponders whether the observed actions could be justified through a rational Bayesian model with a known utility…

Theoretical Economics · Economics 2025-04-08 Henrique de Oliveira , Rohit Lamba

This paper studies a communication game between an uninformed decision maker and two perfectly informed senders with conflicting interests. Senders can misreport information at a cost that increases with the size of the misrepresentation.…

Theoretical Economics · Economics 2023-04-17 Federico Vaccari

Algorithms are commonly used to predict outcomes under a particular decision or intervention, such as predicting whether an offender will succeed on parole if placed under minimal supervision. Generally, to learn such counterfactual…

Machine Learning · Statistics 2021-04-19 Amanda Coston , Edward H. Kennedy , Alexandra Chouldechova

Counterfactual explanations (CFEs) highlight what changes to a model's input would have changed its prediction in a particular way. CFEs have gained considerable traction as a psychologically grounded solution for explainable artificial…

Artificial Intelligence · Computer Science 2023-03-24 Ulrike Kuhl , André Artelt , Barbara Hammer

Rapid advances in artificial intelligence necessitate a re-examination of the epistemological foundations upon which we attribute consciousness. As AI systems increasingly mimic human behavior and interaction with high fidelity, the concept…

Artificial Intelligence · Computer Science 2025-10-07 Shurui Li