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This paper studies the value of a firm's internal information when the firm faces an adverse selection problem arising from unobservable managerial abilities. While more precise information allows the firm to make ex post more efficient…

Theoretical Economics · Economics 2024-08-08 Felix Zhiyu Feng , Wenyu Wang , Yufeng Wu , Gaoqing Zhang

We study the opinion dynamics in a generalized voter model in which voters are additionally influenced by two antagonistic news sources, whose effect is to promote political polarization. We show that, as the influence of the news sources…

Physics and Society · Physics 2019-11-20 Deepak Bhat , S. Redner

Recommender systems often rely on models which are trained to maximize accuracy in predicting user preferences. When the systems are deployed, these models determine the availability of content and information to different users. The gap…

Machine Learning · Computer Science 2021-02-02 Sarah Dean , Sarah Rich , Benjamin Recht

Money is central in US politics, and most campaign contributions stem from a tiny, wealthy elite. Like other political acts, campaign donations are known to be socially contagious. We study how campaign donations diffuse through a network…

Physics and Society · Physics 2016-04-19 V. A. Traag

Modern recommender systems are trained to predict users potential future interactions from users historical behavior data. During the interaction process, despite the data coming from the user side recommender systems also generate exposure…

Information Retrieval · Computer Science 2022-10-25 Xin Xin , Jiyuan Yang , Hanbing Wang , Jun Ma , Pengjie Ren , Hengliang Luo , Xinlei Shi , Zhumin Chen , Zhaochun Ren

Should firms that apply machine learning algorithms in their decision-making make their algorithms transparent to the users they affect? Despite growing calls for algorithmic transparency, most firms have kept their algorithms opaque,…

Computer Science and Game Theory · Computer Science 2020-08-24 Qiaochu Wang , Yan Huang , Stefanus Jasin , Param Vir Singh

I examine how a decision maker can incentivize an expert to reveal novel actions, expanding the set from which he can choose, without making ex-ante commitments regarding as-of-yet unrevealed actions. The outcomes achievable by any…

Theoretical Economics · Economics 2025-07-25 Evan Piermont

We propose models for lobbying in a probabilistic environment, in which an actor (called "The Lobby") seeks to influence voters' preferences of voting for or against multiple issues when the voters' preferences are represented in terms of…

Computational Complexity · Computer Science 2011-03-01 Daniel Binkele-Raible , Gábor Erdélyi , Henning Fernau , Judy Goldsmith , Nicholas Mattei , Jörg Rothe

We develop an overlapping generations model where each agent observes a verifiable private signal about the state and, with positive probability, also receives signals disclosed by his predecessor. The agent then takes an action and decides…

Theoretical Economics · Economics 2026-02-26 Nemanja Antic , Harry Pei

An individual's opinion concerning political bias in the media is shaped by exogenous factors (independent analysis of media outputs) and endogenous factors (social activity, e.g. peer pressure by political allies and opponents in a…

Physics and Society · Physics 2026-03-11 Jarra Horstman , Andrew Melatos , Farhad Farokhi

The question we raise through this paper is: Is it economically feasible to trade consumer personal information with their formal consent (permission) and in return provide them incentives (monetary or otherwise)?. In view of (a) the…

Computers and Society · Computer Science 2020-12-11 Ranjan Pal , Yixuan Wang , Swades De , Bodhibrata Nag , Pan Hui

We study the impact of disinformation on a model of resource allocation with independent selfish agents: clients send requests to one of two servers, depending on which one is perceived as offering shorter waiting times. Delays in the…

Disordered Systems and Neural Networks · Physics 2007-05-23 Richard Metzler , Mark Klein , Yaneer Bar-Yam

We study a variant of the principal-agent problem in which the principal does not directly observe the agent's effort outcome; rather, she gets a signal about the agent's action according to a variable information structure designed by a…

Computer Science and Game Theory · Computer Science 2024-09-06 Yakov Babichenko , Inbal Talgam-Cohen , Haifeng Xu , Konstantin Zabarnyi

We analyze the optimal strategy for a government to promote large-scale investment projects under information frictions. Specifically, we propose a model where the government collects information on probability of each investment and…

Theoretical Economics · Economics 2021-05-21 Keeyoung Rhee , Myungkyu Shim , Ji Zhang

We consider a model of a data broker selling information to a single agent to maximize his revenue. The agent has a private valuation of the additional information, and upon receiving the signal from the data broker, the agent can conduct…

Theoretical Economics · Economics 2023-08-08 Yingkai Li

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…

Theoretical Economics · Economics 2019-08-23 Marcel Montrey , Thomas R. Shultz

This work investigates a dynamic variant of Bayesian persuasion, in which a strategic sender seeks to influence a receiver's belief over time through controlling the timing of the information disclosure, under resource constraints. We…

Information Theory · Computer Science 2025-12-05 Ahmet Bugra Gundogan , Melih Bastopcu

Can stated preferences inform counterfactual analyses of actual choice? This research proposes a novel approach to researchers who have access to both stated choices in hypothetical scenarios and actual choices, matched or unmatched. The…

Econometrics · Economics 2025-11-18 Romuald Meango , Marc Henry , Ismael Mourifie

Indirect reciprocity promotes cooperation by allowing individuals to help others based on reputation rather than direct reciprocation. Because it relies on accurate reputation information, its effectiveness can be undermined by information…

Physics and Society · Physics 2026-05-04 Heejeong Kim , Yohsuke Murase

Recently, recommender systems have achieved promising performances and become one of the most widely used web applications. However, recommender systems are often trained on highly sensitive user data, thus potential data leakage from…

Cryptography and Security · Computer Science 2021-09-17 Minxing Zhang , Zhaochun Ren , Zihan Wang , Pengjie Ren , Zhumin Chen , Pengfei Hu , Yang Zhang
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