Related papers: Motives for Delegating Financial Decisions
Most known regret bounds for reinforcement learning are either episodic or assume an environment without traps. We derive a regret bound without making either assumption, by allowing the algorithm to occasionally delegate an action to an…
I consider decision-making constrained by considerations of morality, rationality, or other virtues. The decision maker (DM) has a true preference over outcomes, but feels compelled to choose among outcomes that are top-ranked by some…
We consider an agent community wishing to decide on several binary issues by means of issue-by-issue majority voting. For each issue and each agent, one of the two options is better than the other. However, some of the agents may be…
We investigate the behavior of experts who seek to make predictions with maximum impact on an audience. At a known future time, a certain continuous random variable will be realized. A public prediction gradually converges to the outcome,…
Contemporary scientific research is a distributed, collaborative endeavor, carried out by teams of researchers, regulatory institutions, funding agencies, commercial partners, and scientific bodies, all interacting with each other and…
Take up of microcredit by the poor for investment in businesses or human capital turned out to be very low. We show that this could be explained by risk aversion, without relying on fixed costs or other forms of non-convexity in the…
Prediction problems in finance go beyond estimating the unknown parameters of a model (e.g. of expected returns). This is because such a model would have to include parameters governing the market participants' propensity to change their…
A voting center is in charge of collecting and aggregating voter preferences. In an iterative process, the center sends comparison queries to voters, requesting them to submit their preference between two items. Voters might discuss the…
We study the role of active and passive investors in an investment market with uncertainties. Active investors concentrate on a single or a few stocks with a given probability of determining the quality of them. Passive investors spread…
This chapter examines the link between delegation and lobbying, two themes central to political economy. Delegation models explore how legislatures manage uncertainty and control bureaucratic agents, while lobbying models analyze how…
Due to the importance of artificial intelligence (AI) in a variety of high-stakes decisions, such as loan approval, job hiring, and criminal bail, researchers in Explainable AI (XAI) have developed algorithms to provide users with recourse…
People supported by AI-powered decision support tools frequently overrely on the AI: they accept an AI's suggestion even when that suggestion is wrong. Adding explanations to the AI decisions does not appear to reduce the overreliance and…
We consider the psychological effect of preference reversal and show that it finds a natural explanation in the frame of quantum decision theory. When people choose between lotteries with non-negative payoffs, they prefer a more certain…
Bribery in an election is one of the well-studied control problems in computational social choice. In this paper, we propose and study the safe bribery problem. Here the goal of the briber is to ask the bribed voters to vote in such a way…
A principal designs an algorithm that generates a publicly observable prediction of a binary state. She must decide whether to act directly based on the prediction or to delegate the decision to an agent with private information but…
In order for AI systems to communicate effectively with people, they must understand how we make decisions. However, people's decisions are not always rational, so the implicit internal models of human decision-making in Large Language…
Most of the computational study of election problems has assumed that each voter's preferences are, or should be extended to, a total order. However in practice voters may have preferences with ties. We study the complexity of manipulative…
This research explores how human-defined goals influence the behavior of Large Language Models (LLMs) through purpose-conditioned cognition. Using financial prediction tasks, we show that revealing the downstream use (e.g., predicting stock…
Situations where people have to decide between hurting themselves or another person are at the core of many individual and global conflicts. Yet little is known about how people behave when facing these situations in the lab. Here we report…
We study repeated task assignment as an instrument for providing effort incentives. Unlike traditional incentive instruments, assignment of a task both determines who produces and provides incentives, and incentives for one worker spill…