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I study costly information acquisition in a two-sided matching problem, such as matching applicants to schools. An applicant's utility is a sum of common and idiosyncratic components. The idiosyncratic component is unknown to the applicant…

Theoretical Economics · Economics 2021-10-22 Georgy Artemov

Recommender systems learn from historical users' feedback that is often non-uniformly distributed across items. As a consequence, these systems may end up suggesting popular items more than niche items progressively, even when the latter…

Information Retrieval · Computer Science 2020-10-06 Ludovico Boratto , Gianni Fenu , Mirko Marras

Modern recommendation systems rely on the wisdom of the crowd to learn the optimal course of action. This induces an inherent mis-alignment of incentives between the system's objective to learn (explore) and the individual users' objective…

Computer Science and Game Theory · Computer Science 2018-07-06 Gal Bahar , Rann Smorodinsky , Moshe Tennenholtz

Recommendation systems are pervasive in the digital economy. An important assumption in many deployed systems is that user consumption reflects user preferences in a static sense: users consume the content they like with no other…

Computers and Society · Computer Science 2023-02-14 Andreas Haupt , Dylan Hadfield-Menell , Chara Podimata

Reputation is crucial to enabling human or software agents to select among alternative providers. Although several effective reputation assessment methods exist, they typically distil reputation into a numerical representation, with no…

Artificial Intelligence · Computer Science 2020-06-17 Ingrid Nunes , Phillip Taylor , Lina Barakat , Nathan Griffiths , Simon Miles

We study buyer-optimal procurement mechanisms when quality is contractible. When some costs are borne by every participant of a procurement auction regardless of winning, the classic analysis should be amended. We show that an optimal…

Theoretical Economics · Economics 2024-11-20 Pasha Andreyanov , Ilia Krasikov , Alex Suzdaltsev

In many real world networks agents are initially unsure of each other's qualities and must learn about each other over time via repeated interactions. This paper is the first to provide a methodology for studying the dynamics of such…

Economics · Quantitative Finance 2016-06-09 Simpson Zhang , Mihaela van der Schaar

Due to limited cognitive skills for perceptual error or other emotional reasons, players may keep their current strategies even if there is a more promising choice. Such behavior inertia has already been studied, but its consequences…

Statistical Mechanics · Physics 2023-03-15 Chaoqian Wang , Attila Szolnoki

In online bilateral trade, a platform posts prices to incoming pairs of buyers and sellers that have private valuations for a certain good. If the price is lower than the buyers' valuation and higher than the sellers' valuation, then a…

Computer Science and Game Theory · Computer Science 2024-05-24 François Bachoc , Nicolò Cesa-Bianchi , Tommaso Cesari , Roberto Colomboni

We study dynamic pricing where a seller repeatedly interacts with a strategic, non-myopic buyer who has a fixed private valuation and discounts future utility. Prior work focused exclusively on posted-price mechanisms, which only extract…

Computer Science and Game Theory · Computer Science 2026-04-28 Shiliang Zuo

When a population is engaged in successive prisoner's dilemmas, indirect reciprocity through reputation fosters cooperation through the emergence of moral and action rules. A simplified model has recently been proposed where individuals…

Physics and Society · Physics 2015-02-18 Luis A. Martinez-Vaquero , José A. Cuesta

Altruistic cooperation is costly yet socially desirable. As a result, agents struggle to learn cooperative policies through independent reinforcement learning (RL). Indirect reciprocity, where agents consider their interaction partner's…

Multiagent Systems · Computer Science 2024-08-09 Martin Smit , Fernando P. Santos

When information acquisition is costly but flexible, a principal may rationally acquire information that favors one group over another. The former group faces incentives to invest in becoming productive, while the latter is discouraged from…

Theoretical Economics · Economics 2024-09-10 Federico Echenique , Anqi Li

In many service markets, expert providers possess an information advantage over consumers regarding the necessary services, creating opportunities for fraudulent practices. These may involve overtreatment through unnecessary services or…

Theoretical Economics · Economics 2025-03-28 Xiaoyan Xu , Weishi Lim , Xing Zhang , Jeff Cai

For product rating environments, similar to that of Amazon Reviews, it has been shown that the truthful elicitation of feedback is possible through mechanisms which pay buyer reports contingent on the reports of other buyers. We study…

Computer Science and Game Theory · Computer Science 2012-03-19 Jens Witkowski

In this work we study a modified version of the two-dimensional Sznajd sociophysics model. In particular, we consider the effects of agents' reputations in the persuasion rules. In other words, a high-reputation group with a common opinion…

Physics and Society · Physics 2011-11-03 Nuno Crokidakis , Paulo Murilo Castro de Oliveira

We consider goods that can be shared with k-hop neighbors (i.e., the set of nodes within k hops from an owner) on a social network. We examine incentives to buy such a good by devising game-theoretic models where each node decides whether…

Artificial Intelligence · Computer Science 2017-05-23 Kijung Shin , Euiwoong Lee , Dhivya Eswaran , Ariel D. Procaccia

Content creators compete for exposure on recommendation platforms, and such strategic behavior leads to a dynamic shift over the content distribution. However, how the creators' competition impacts user welfare and how the relevance-driven…

Computer Science and Game Theory · Computer Science 2023-05-04 Fan Yao , Chuanhao Li , Denis Nekipelov , Hongning Wang , Haifeng Xu

This paper studies the advance-purchase game when a consumer has belief-based loss-averse preferences, introducing a novel perspective by incorporating reference updating. It demonstrates that loss aversion increases the consumer's…

Theoretical Economics · Economics 2024-05-14 Senran Lin

Reputation plays a major role in human societies, and it has been proposed as an explanation for the evolution of cooperation. While the majority of previous studies equates reputation with a transparent and complete history of players'…

Physics and Society · Physics 2025-08-20 Valerio Capraro , Francesca Giardini , Daniele Vilone , Mario Paolucci