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We propose a Machine Learning approach for optimal macroeconomic density forecasting in a high-dimensional setting where the underlying model exhibits a known group structure. Our approach is general enough to encompass specific forecasting…

Econometrics · Economics 2024-11-18 Matteo Mogliani , Anna Simoni

Large Language Models (LLMs) have demonstrated impressive capabilities in reasoning and prediction across different domains. Yet, their ability to infer temporal regularities from structured behavioral data remains underexplored. This paper…

This paper presents a sandbox example of how the integration of models borrowed from Behavioral Economic (specifically Protection-Motivation Theory) into ML algorithms (specifically Bayesian Networks) can improve the performance and…

Theoretical Economics · Economics 2022-05-05 Emilio Soria-Olivas , José E. Vila Gisbert , Regino Barranquero Cardeñosa , Yolanda Gomez

Agents learn about a changing state using private signals and their neighbors' past estimates of the state. We present a model in which Bayesian agents in equilibrium use neighbors' estimates simply by taking weighted sums with…

Theoretical Economics · Economics 2022-11-28 Krishna Dasaratha , Benjamin Golub , Nir Hak

As agentic AI becomes more widespread, agents with distinct and possibly conflicting goals will interact in complex ways. These multi-agent interactions pose a fundamental challenge, particularly in social dilemmas, where agents' individual…

Machine Learning · Computer Science 2025-12-02 Dereck Piche , Mohammed Muqeeth , Milad Aghajohari , Juan Duque , Michael Noukhovitch , Aaron Courville

Large Language Models (LLMs) have demonstrated an unprecedented ability to simulate human-like social behaviors, making them useful tools for simulating complex social systems. However, it remains unclear to what extent these simulations…

Social and Information Networks · Computer Science 2026-04-16 Erica Cau , Andrea Failla , Giulio Rossetti

Large language models (LLMs) are increasingly used as proxies for human judgment in computational social science, yet their ability to reproduce patterns of susceptibility to misinformation remains unclear. We test whether LLM-simulated…

Social and Information Networks · Computer Science 2026-04-13 Eun Cheol Choi , Lindsay E. Young , Emilio Ferrara

We argue that newly-developed large language models (LLMs), because of how they are trained and designed, are implicit computational models of humans -- a Homo silicus. LLMs can be used like economists use Homo economicus: they can be given…

General Economics · Economics 2026-02-27 John J. Horton , Apostolos Filippas , Benjamin S. Manning

Languages are shaped by the inductive biases of their users. Using a classical referential game, we investigate how artificial languages evolve when optimised for inductive biases in humans and large language models (LLMs) via Human-Human,…

Computation and Language · Computer Science 2025-05-29 Tom Kouwenhoven , Max Peeperkorn , Roy de Kleijn , Tessa Verhoef

While advances in fairness and alignment have helped mitigate overt biases exhibited by large language models (LLMs) when explicitly prompted, we hypothesize that these models may still exhibit implicit biases when simulating human…

Computation and Language · Computer Science 2025-01-30 Yuxuan Li , Hirokazu Shirado , Sauvik Das

As large language models (LLMs) increasingly act as autonomous agents in markets and organizations, their behavior in strategic environments becomes economically consequential. We document that off-the-shelf LLM agents exhibit systematic…

General Economics · Economics 2026-03-16 Wei Lu , Amit Dhanda , Daniel L. Chen , Christian B. Hansen

We study a model of information aggregation and social learning recently proposed by Jadbabaie, Sandroni, and Tahbaz-Salehi, in which individual agents try to learn a correct state of the world by iteratively updating their beliefs using…

Social and Information Networks · Computer Science 2011-03-24 Pooya Molavi , Ali Jadbabaie

A network of agents attempt to learn some unknown state of the world drawn by nature from a finite set. Agents observe private signals conditioned on the true state, and form beliefs about the unknown state accordingly. Each agent may face…

Machine Learning · Computer Science 2015-03-13 Shahin Shahrampour , Mohammad Amin Rahimian , Ali Jadbabaie

Online auctions are one of the most fundamental facets of the modern economy and power an industry generating hundreds of billions of dollars a year in revenue. Auction theory has historically focused on the question of designing the best…

Computer Science and Game Theory · Computer Science 2021-09-23 Thomas Nedelec , Clément Calauzènes , Noureddine El Karoui , Vianney Perchet

Autoregressive large language models (LLMs) compress knowledge from their training data through next-token conditional distributions. This limits tractable querying of this knowledge to start-to-end autoregressive sampling. However, many…

Machine Learning · Computer Science 2024-03-15 Edward J. Hu , Moksh Jain , Eric Elmoznino , Younesse Kaddar , Guillaume Lajoie , Yoshua Bengio , Nikolay Malkin

Large Language Models (LLMs) can be deployed in situations where they process positive/negative interactions with other agents. We study how this is done under the sociological framework of social balance, which explains the emergence of…

Computation and Language · Computer Science 2026-01-07 Pedro Cisneros-Velarde

Non-Bayesian social learning theory provides a framework that models distributed inference for a group of agents interacting over a social network. In this framework, each agent iteratively forms and communicates beliefs about an unknown…

Artificial Intelligence · Computer Science 2020-08-26 James Z. Hare , Cesar A. Uribe , Lance Kaplan , Ali Jadbabaie

We propose a general-purpose approach for improving the ability of large language models (LLMs) to intelligently and adaptively gather information from a user or other external source using the framework of sequential Bayesian experimental…

Computation and Language · Computer Science 2026-04-22 Deepro Choudhury , Sinead Williamson , Adam Goliński , Ning Miao , Freddie Bickford Smith , Michael Kirchhof , Yizhe Zhang , Tom Rainforth

We propose a hybrid approach to machine Theory of Mind (ToM) that uses large language models (LLMs) as a mechanism for generating hypotheses and likelihood functions with a Bayesian inverse planning model that computes posterior…

Artificial Intelligence · Computer Science 2025-07-08 Rebekah A. Gelpí , Eric Xue , William A. Cunningham

Large language models (LLMs) offer strong capabilities but raise cost and privacy concerns, whereas small language models (SLMs) facilitate efficient and private local inference yet suffer from limited capacity. To synergize the…

Computation and Language · Computer Science 2026-04-21 Hang Zeng , Xiangyu Liu , Yong Hu , Chaoyue Niu , Jiarui Zhang , Shaojie Tang , Fan Wu , Guihai Chen