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This paper investigates a novel behavioral feature of recursive preferences: aversion to risks that persist over time, or simply \textit{correlation aversion}. Greater persistence provides information about future consumption but reduces…
Schelling's segregation model is a landmark model in sociology. It shows the counter-intuitive phenomenon that residential segregation between individuals of different groups can emerge even when all involved individuals are tolerant.…
Ingroup favoritism, the tendency to favor ingroup over outgroup, is often explained as a product of intergroup conflict, or correlations between group tags and behavior. Such accounts assume that group membership is meaningful, whereas…
Machine learning systems embed preferences either in training losses or through post-processing of calibrated predictions. Applying information design methods from Strack and Yang (2024), this paper provides decision problem agnostic…
In his seminal work in the 1970s, Robert May suggested that there is an upper limit to the number of species that can be sustained in stable equilibrium by an ecosystem. This deduction was at odds with both intuition and the observed…
Decision-making individuals are typically either an imitator, who mimics the action of the most successful individual(s), a conformist (or coordinating individual), who chooses an action if enough others have done so, or a nonconformist (or…
Deterrence coalitions that collectively own their deterrence technology, need an institutional design to decide when to retaliate against an attack or incident. This choice of institutional design, formalized through a social choice…
Combining learned policies in a prioritized, ordered manner is desirable because it allows for modular design and facilitates data reuse through knowledge transfer. In control theory, prioritized composition is realized by null-space…
Many applications, e.g., Web service composition, complex system design, team formation, etc., rely on methods for identifying collections of objects or entities satisfying some functional requirement. Among the collections that satisfy the…
Selective classification, in which models can abstain on uncertain predictions, is a natural approach to improving accuracy in settings where errors are costly but abstentions are manageable. In this paper, we find that while selective…
We develop a new market-making model, from the ground up, which is tailored towards high-frequency trading under a limit order book (LOB), based on the well-known classification of order types in market microstructure. Our flexible…
This paper proposes a model to explain the potential role of inter-group conflicts in determining the rise and fall of signaling norms. Individuals in a population are characterized by high and low productivity types and they are matched in…
Decision-making individuals often imitate their highest-earning fellows rather than optimize their own utilities, due to bounded rationality and incomplete information. Perpetual fluctuations between decisions have been reported as the…
Much research has been conducted arguing that tipping points at which complex systems experience phase transitions are difficult to identify. To test the existence of tipping points in financial markets, based on the alternating offer…
This paper presents a model of capital accumulation for a large number of heterogenous producer-consumers in an exchange space in which interactions depend on agents' positions. Each agent is described by his production, consumption, stock…
Tipping is a phenomenon in multistable systems where small changes in inputs cause huge changes in outputs. When the parameter varies within a certain time scale, the rate will affect the tipping behaviors. These behaviors are undesirable…
This paper gives a critical account of the minority game literature. The minority game is a simple congestion game: players need to choose between two options, and those who have selected the option chosen by the minority win. The learning…
Three theories offer competing predictions about how people respond to growing diversity in their social environment. Contact theory suggests more exposure to out-groups reduces prejudice; conflict theory predicts a stronger in-group…
Thomas Schelling developed an influential demographic model that illustrated how, even with relatively mild assumptions on each individual's nearest neighbor preferences, an integrated city would likely unravel to a segregated city, even if…
How much do individuals contribute to team output? I propose an econometric framework to quantify individual contributions when only the output of their teams is observed. The identification strategy relies on following individuals who work…