Related papers: Understanding (Ir)rational Herding Online
In this paper, we study the optimal investment problem considering the herd behaviour between two agents, including one leading expert and one following agent whose decisions are influenced by those of the leading expert. In the objective…
Big data and machine learning (ML) algorithms are key drivers of many fintech innovations. While it may be obvious that replacing humans with machine would increase efficiency, it is not clear whether and where machines can make better…
Algorithmic lending has transformed the consumer credit landscape, with complex machine learning models now commonly used to make or assist underwriting decisions. To comply with fair lending laws, these algorithms typically exclude legally…
Humans do not always make rational choices, a fact that experimental economics is putting on solid grounds. The social context plays an important role in determining our actions, and often we imitate friends or acquaintances without any…
Collective behavior of the complex socio-economic systems is heavily influenced by the herding, group, behavior of individuals. The importance of the herding behavior may enable the control of the collective behavior of the individuals. In…
The paper describes a potential platform to facilitate academic peer review with emphasis on early-stage research. This platform aims to make peer review more accurate and timely by rewarding reviewers on the basis of peer prediction…
Online communities play a critical role in shaping societal discourse and influencing collective behavior in the real world. The tendency for people to connect with others who share similar characteristics and views, known as homophily,…
Imitation is a basic updating mechanism for strategy evolution in structured populations, determining how individuals sample social information and translate it into behavioral changes. Higher-order networks, such as hypergraphs, generalize…
Network analysis provides powerful tools to learn about a variety of social systems. However, most analyses implicitly assume that the considered relational data is error-free, reliable and accurately reflects the system to be analysed.…
Lending decisions are usually made with proprietary models that provide minimally acceptable explanations to users. In a future world without such secrecy, what decision support tools would one want to use for justified lending decisions?…
This paper proposes models of learning process in teams of individuals who collectively execute a sequence of tasks and whose actions are determined by individual skill levels and networks of interpersonal appraisals and influence. The…
With the rapid growth of online social media, people become increasingly overwhelmed by the volume and the content of the information present in the environment. The threshold model is currently one of the most common methods to capture the…
Taking advice from others requires confidence in their competence. This is important for interaction with peers, but also for collaboration with social robots and artificial agents. Nonetheless, we do not always have access to information…
This literature review elucidates the implications of behavioral biases, particularly those stemming from overconfidence and framing, on the intertemporal choices made by students on their underline demand preferences for student loans. A…
Social foraging is a widespread form of animal foraging in which groups of individuals coordinate their decisions to exploit resources in the environment. Animals show a variety of social structures from egalitarian to hierarchical. In this…
In this paper, we discuss a voting model with two candidates, C_1 and C_2. We set two types of voters--herders and independents. The voting of independent voters is based on their fundamental values; on the other hand, the voting of herders…
Sequential fundraising in two sided online platforms enable peer to peer lending by sequentially bringing potential contributors, each of whose decisions impact other contributors in the market. However, understanding the dynamics of…
Collective intelligence is believed to underly the remarkable success of human society. The formation of accurate shared beliefs is one of the key components of human collective intelligence. How are accurate shared beliefs formed in groups…
This paper presents an experimental study to investigate the learning and decision making behavior of individuals in a human society. Social learning is used as the mathematical basis for modelling interaction of individuals that aim to…
Resource allocation systems provide the fundamental support for the normal functioning and well being of the modern society, and can be modeled as minority games. A ubiquitous dynamical phenomenon is the emergence of herding, where a vast…