Related papers: Randomization advice and ambiguity aversion
Confirmation bias is a cognitive bias that adversely affects management decisions, and mathematical modelling is an aid to its detailed understanding. Bias in opinion update about the value of a parameter is modelled here assuming that…
We introduce a way to compare actions in decision problems. One action is safer than another if the set of beliefs at which the decision-maker prefers the safer action expands as the decision-maker becomes more risk averse. We provide a…
Trustworthy language models should abstain from answering questions when they do not know the answer. However, the answer to a question can be unknown for a variety of reasons. Prior research has focused on the case in which the question is…
We investigate how individuals form expectations about population behavior using statistical inference based on observations of their social relations. Misperceptions about others' connectedness and behavior arise from sampling bias…
In open-domain question answering, due to the ambiguity of questions, multiple plausible answers may exist. To provide feasible answers to an ambiguous question, one approach is to directly predict all valid answers, but this can struggle…
An observer wants to understand a decision-maker's welfare from her choice. She believes that decisions are made under limited attention. We argue that the standard model of limited attention cannot help the observer greatly. To address…
From scientific experiments to online A/B testing, the previously observed data often affects how future experiments are performed, which in turn affects which data will be collected. Such adaptivity introduces complex correlations between…
I study altruistic choices through the lens of a cognitively noisy decision-maker. I introduce a theoretical framework that demonstrates how increased cognitive noise can directionally affect altruistic decisions and put its implications to…
This paper investigates a purely qualitative version of Savage's theory for decision making under uncertainty. Until now, most representation theorems for preference over acts rely on a numerical representation of utility and uncertainty…
This paper investigates the prospects of using directive explanations to assist people in achieving recourse of machine learning decisions. Directive explanations list which specific actions an individual needs to take to achieve their…
In many biological networks the responses of individual elements are ambiguous. We consider a scenario in which many sensors respond to a shared signal, each with limited information capacity, and ask that the outputs together convey as…
A mathematical model of Subject behaviour choice is proposed. The background of the model is the concept of two preference relations determining Subject behaviour. These are an "internal" or subjective preference relation and an "external"…
When making decisions under uncertainty, individuals often deviate from rational behavior, which can be evaluated across three dimensions: risk preference, probability weighting, and loss aversion. Given the widespread use of large language…
Algorithmic recommendation based on noisy preference measurement is prevalent in recommendation systems. This paper discusses the consequences of such recommendation on market concentration and inequality. Binary types denoting a…
Large-scale social networks are thought to contribute to polarization by amplifying people's biases. However, the complexity of these technologies makes it difficult to identify the mechanisms responsible and to evaluate mitigation…
We conduct a laboratory experiment using framing to assess the willingness to ``sell a lemon'', i.e., to undertake an action that benefits self but hurts the other (the ``buyer''). We seek to disentangle the role of other-regarding…
Decisions taken in our everyday lives are based on a wide variety of information so it is generally very difficult to assess what are the strategies that guide us. Stock market therefore provides a rich environment to study how people take…
An agent choosing between various actions tends to take the one with the lowest cost. But this choice is arguably too rigid (not adaptive) to be useful in complex situations, e.g., where exploration-exploitation trade-off is relevant in…
We consider the problem of designing a prospective randomized trial in which the outcome data will be self-reported, and will involve sensitive topics. Our interest is in misreporting behavior, and how respondents' tendency to under- or…
We study the experimentation dynamics of a decision maker (DM) in a two-armed bandit setup (Bolton and Harris (1999)), where the agent holds ambiguous beliefs regarding the distribution of the return process of one arm and is certain about…