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Persuasion studies how an informed principal may influence the behavior of agents by the strategic provision of payoff-relevant information. We focus on the fundamental multi-receiver model by Arieli and Babichenko (2019), in which there…

Computer Science and Game Theory · Computer Science 2020-04-01 Matteo Castiglioni , Andrea Celli , Nicola Gatti

Agents that learn to select optimal actions represent a prominent focus of the sequential decision-making literature. In the face of a complex environment or constraints on time and resources, however, aiming to synthesize such an optimal…

Machine Learning · Computer Science 2021-06-23 Dilip Arumugam , Benjamin Van Roy

Two agents repeatedly compete for the power to set policy. A principal partially influences the power allocation. All three players may disagree on policy, but one agent (the ``friend'') aligns more closely with the principal than the other…

Theoretical Economics · Economics 2025-07-31 Álvaro Delgado-Vega , Johannes Schneider

In recent studies of political decision-making, apparently anomalous behavior has been observed on the part of voters, in which negative information about a candidate strengthens, rather than weakens, a prior positive opinion about the…

Artificial Intelligence · Computer Science 2013-06-12 William W. Cohen , David P. Redlawsk , Douglas Pierce

We introduce a model of persuasion in which a sender without any commitment power privately gathers information about an unknown state of the world and then chooses what to verifiably disclose to a receiver. The receiver does not know how…

Theoretical Economics · Economics 2025-11-25 Itai Arieli , Colin Stewart

A planner wants to select one agent out of n agents on the basis of a binary characteristic that is commonly known to all agents but is not observed by the planner. Any pair of agents can either be friends or enemies or impartials of each…

Theoretical Economics · Economics 2025-11-17 Francis Bloch , Bhaskar Dutta , Marcin Dziubiński

We study whether a planner can robustly implement a state-contingent social choice function when (i) agents must incur a cost to learn the state and (ii) the planner faces uncertainty regarding agents' preferences over outcomes, information…

Theoretical Economics · Economics 2021-12-14 Harry Pei , Bruno Strulovici

Before purchase, a buyer of an experience good learns about the product's fit using various information sources, including some of which the seller may be unaware of. The buyer, however, can conclusively learn the fit only after purchasing…

Computer Science and Game Theory · Computer Science 2020-05-21 Toomas Hinnosaar , Keiichi Kawai

A principal wishes to transact business with a multidimensional distribution of agents whose preferences are known only in the aggregate. Assuming a twist (= generalized Spence-Mirrlees single-crossing) hypothesis and that agents can choose…

Optimization and Control · Mathematics 2009-12-17 Alessio Figalli , Young-Heon Kim , Robert J. McCann

We study the problem of demand response contracts in electricity markets by quantifying the impact of considering a mean-field of consumers, whose consumption is impacted by a common noise. We formulate the problem as a Principal-Agent…

Probability · Mathematics 2020-03-25 Romuald Elie , Emma Hubert , Thibaut Mastrolia , Dylan Possamaï

We study the role of regulatory inspections in a contract design problem in which a principal interacts separately with multiple agents. Each agent's hidden action includes a dimension that determines whether they undertake an extra costly…

Computer Science and Game Theory · Computer Science 2023-11-07 Alireza Fallah , Michael I. Jordan

We study how to optimally design selection mechanisms, accounting for agents' investment incentives. A principal wishes to allocate a resource of homogeneous quality to a heterogeneous population of agents. The principal commits to a…

Theoretical Economics · Economics 2025-11-11 Victor Augias , Eduardo Perez-Richet

We consider two-sided matching markets, and study the incentives of agents to circumvent a centralized clearing house by signing binding contracts with one another. It is well-known that if the clearing house implements a stable match and…

Computer Science and Game Theory · Computer Science 2015-04-14 Nick Arnosti , Nicole Immorlica , Brendan Lucier

Risk aversion and insurance are two prominent and interconnected concepts in economics and finance. To explore their fundamental connection, we introduce risk-insurance parity, which associates various classes of insurance contracts with…

Theoretical Economics · Economics 2025-12-11 Benjamin Côté , Ruodu Wang , Qinyu Wu

Recent work in AI safety has highlighted that in sequential decision making, objectives are often underspecified or incomplete. This gives discretion to the acting agent to realize the stated objective in ways that may result in undesirable…

Artificial Intelligence · Computer Science 2021-06-07 Parand Alizadeh Alamdari , Toryn Q. Klassen , Rodrigo Toro Icarte , Sheila A. McIlraith

When introducing a novel product, a seller sets a price and decides how much information to provide to a buyer, who may incur a search cost to discover an outside option. The buyer knows the outside option distribution; the seller knows…

Theoretical Economics · Economics 2025-08-07 Kun Zhang

A monopolist sells goods with possibly a characteristic consumers dislike (for instance, he sells random goods to risk averse agents), which does not affect the production costs. We investigate the question whether using undesirable goods…

Optimization and Control · Mathematics 2010-06-03 Aimé Lachapelle , Filippo Santambrogio

We study an extension of the voter model in which each agent is endowed with an innate preference for one of two states that we term as "truth" or "falsehood". Due to interactions with neighbors, an agent that innately prefers truth can be…

Physics and Society · Physics 2011-05-03 Naoki Masuda , S. Redner

An asymmetric information model is introduced for the situation in which there is a small agent who is more susceptible to the flow of information in the market than the general market participant, and who tries to implement strategies…

Trading and Market Microstructure · Quantitative Finance 2013-01-31 Dorje C. Brody , Mark H. A. Davis , Robyn L. Friedman , Lane P. Hughston

In this paper, we consider one aspect of the problem of applying decision theory to the design of agents that learn how to make decisions under uncertainty. This aspect concerns how an agent can estimate probabilities for the possible…

Artificial Intelligence · Computer Science 2013-03-26 Adam J. Grove , Daphne Koller