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Related papers: The Wrong Kind of Information

200 papers

An informed planner wishes to spread information among a group of agents in order to induce efficient coordination -- say the adoption of a new technology with positive externalities. The agents are connected via a social network. The…

Theoretical Economics · Economics 2024-02-09 Yu Awaya , Vijay Krishna

An agent acquires information dynamically until her belief about a binary state reaches an upper or lower threshold. She can choose any signal process subject to a constraint on the rate of entropy reduction. Strategies are ordered by "time…

Theoretical Economics · Economics 2024-08-23 Daniel Chen , Weijie Zhong

We analyze the dynamic tradeoff between generating and disclosing evidence. Agents are tempted to delay investing in a new technology in order to learn from information generated by the experiences of others. This informational free-riding…

Theoretical Economics · Economics 2025-11-19 Jan Knoepfle , Julia Salmi

The information ratio offers an approach to assessing the efficacy with which an agent balances between exploration and exploitation. Originally, this was defined to be the ratio between squared expected regret and the mutual information…

Machine Learning · Computer Science 2021-02-19 Adithya M. Devraj , Benjamin Van Roy , Kuang Xu

We introduce and study the problem of detecting whether an agent is updating their prior beliefs given new evidence in an optimal way that is Bayesian, or whether they are biased towards their own prior. In our model, biased agents form…

Computer Science and Game Theory · Computer Science 2024-10-31 Yiling Chen , Tao Lin , Ariel D. Procaccia , Aaditya Ramdas , Itai Shapira

In this study, I present a theoretical social learning model to investigate how confirmation bias affects opinions when agents exchange information over a social network. Hence, besides exchanging opinions with friends, agents observe a…

Theoretical Economics · Economics 2023-02-27 Marcos R. Fernandes

Motivated by online platforms such as job markets, we study an agent choosing from a list of candidates, each with a hidden quality that determines match value. The agent observes only a noisy ranking of the candidates plus a binary signal…

Computer Science and Game Theory · Computer Science 2026-02-26 Kate Donahue , Nicole Immorlica , Brendan Lucier

We show that it can be suboptimal for Bayesian decision-making agents employing social learning to use correct prior probabilities as their initial beliefs. We consider sequential Bayesian binary hypothesis testing where each individual…

Information Theory · Computer Science 2026-03-12 Joong Bum Rhim , Vivek K Goyal

Motivated reasoning posits that people distort how they process information in the direction of beliefs they find attractive. This paper creates a novel experimental design to identify motivated reasoning from Bayesian updating when people…

General Economics · Economics 2022-05-26 Michael Thaler

The rule extraction literature contains the notion of a fidelity-accuracy dilemma: when building an interpretable model of a black box function, optimising for fidelity is likely to reduce performance on the underlying task, and vice versa.…

Artificial Intelligence · Computer Science 2020-07-09 Tom Bewley

We study a simple model of an asset market with informed and non-informed agents. In the absence of non-informed agents, the market becomes information efficient when the number of traders with different private information is large enough.…

Trading and Market Microstructure · Quantitative Finance 2010-04-29 Fabio Caccioli , Matteo Marsili

We study how a decision-maker can acquire more information from an agent by reducing her own ability to observe what the agent transmits. In a large class of binary-action games, opacity design is just as good as full commitment to actions…

Theoretical Economics · Economics 2024-02-07 Mark Whitmeyer

Reinforcement learning systems are often concerned with balancing exploration of untested actions against exploitation of actions that are known to be good. The benefit of exploration can be estimated using the classical notion of Value of…

Artificial Intelligence · Computer Science 2013-01-30 Richard Dearden , Nir Friedman , David Andre

When people choose what messages to send to others, they often consider how others will interpret the messages. A sender may expect a receiver to engage in motivated reasoning, leading the receiver to trust good news more than bad news,…

General Economics · Economics 2023-10-02 Michael Thaler

Blameworthiness of an agent or a coalition of agents is often defined in terms of the principle of alternative possibilities: for the coalition to be responsible for an outcome, the outcome must take place and the coalition should have had…

Artificial Intelligence · Computer Science 2019-03-28 Pavel Naumov , Jia Tao

We show that in delegation problems, a principal benefits from belief misalignment vis-\`a-vis an agent when the latter can flexibly acquire costly information. The agent optimally succumbs to confirmatory learning, leading him to favor the…

Theoretical Economics · Economics 2025-07-30 Pavel Ilinov , Andrei Matveenko , Maxim Senkov , Egor Starkov

We consider settings where an uninformed principal must hear arguments from two better-informed agents, corresponding to two possible courses of action that they argue for. The arguments are verifiable in the sense that the true state of…

Computer Science and Game Theory · Computer Science 2025-12-01 Alexander Heckett , Vincent Conitzer

We consider information networks whereby multiple biased-information-providers (BIPs), e.g., media outlets/social network users/sensors, share reports of events with rational-information-consumers (RICs). Making the reasonable abstraction…

Social and Information Networks · Computer Science 2020-04-28 H. Kesavareddigari , A. Eryilmaz

We study the voting game where agents' preferences are endogenously decided by the information they receive, and they can collaborate in a group. We show that strategic voting behaviors have a positive impact on leading to the ``correct''…

Computer Science and Game Theory · Computer Science 2023-05-23 Qishen Han , Grant Schoenebeck , Biaoshuai Tao , Lirong Xia

The ability of a society to make the right decisions on relevant matters relies on its capability to properly aggregate the noisy information spread across the individuals it is made of. In this paper we study the information aggregation…

Physics and Society · Physics 2015-06-16 Giacomo Livan , Matteo Marsili