Related papers: Motives for Delegating Financial Decisions
We conduct an incentivized experiment on a nationally representative US sample \\ (N=708) to test whether people prefer to avoid ambiguity even when it means choosing dominated options. In contrast to the literature, we find that 55\% of…
Financial markets are subject to long periods of polarized behavior, such as bull-market or bear-market phases, in which the vast majority of market participants seem to almost exclusively choose one action (between buying or selling) over…
Appropriate decisions depend on information gathered beforehand, yet such information is often obtained through intermediaries with biased preferences. Motivated by settings such as testing and recertification in organ transplantation, we…
In democracies, major policy decisions typically require some form of majority or consensus, so elites must secure mass support to govern. Historically, elites could shape support only through limited instruments like schooling and mass…
We explored decision-making dynamics in social systems, referencing the 'herd behavior' from prior studies where individuals follow preceding choices without understanding the underlying reasons. While previous research highlighted a…
Liquid democracy is a proxy voting method where proxies are delegable. We propose and study a game-theoretic model of liquid democracy to address the following question: when is it rational for a voter to delegate her vote? We study the…
The disposition effect describes investors' irrational behavior of selling profitable assets too soon while holding onto losing assets for too long. This study examines the impact of transparency at the firm level on the disposition effect…
As Artificial Intelligence (AI) becomes increasingly embedded in financial decision-making, the opacity of complex models presents significant challenges for professionals and regulators. While the field of Explainable AI (XAI) attempts to…
The host of a game presents two indistinguishable envelopes to an agent. One of the envelopes is randomly selected and allocated to the agent. The agent is informed that the monetary content of one of the envelopes is twice that of the…
Large language models (LLMs) are increasingly deployed in high-stakes settings where good decisions require forming beliefs over the probability of unknown outcomes. However, it is unclear whether LLMs act as if they hold coherent beliefs…
We consider reallocation problems in settings where the initial endowment of each agent consists of a subset of the resources. The private information of the players is their value for every possible subset of the resources. The goal is to…
Accurately modeling human decision-making in security is critical to thinking about when, why, and how to recommend that users adopt certain secure behaviors. In this work, we conduct behavioral economics experiments to model the…
We model investor heterogeneity using different required returns on an investment and evaluate the impact on the valuation of an investment. By assuming no disagreement on the cash flows, we emphasize how risk preferences in particular, but…
Human-AI collaboration is often proposed to improve high-stakes decision-making, yet the influence of increased stakes and imperfect AI on decision-making strategies is not fully understood. Studying such behavior in realistic settings is…
People are frequently required to send documents, forms, or other materials containing sensitive data (e.g., personal information, medical records, financial data) to remote parties, sometimes without a formal procedure to do so securely.…
Using results from neurobiology on perceptual decision making and value-based decision making, the problem of decision making between lotteries is reformulated in an abstract space where uncertain prospects are mapped to corresponding…
Societies often rely on human experts to take a wide variety of decisions affecting their members, from jail-or-release decisions taken by judges and stop-and-frisk decisions taken by police officers to accept-or-reject decisions taken by…
Trust is often conveyed through delegation, or through recommendation. This makes the trust authorities, who process and publish trust recommendations, into an attractive target for attacks and spoofing. In some recent empiric studies, this…
Learning algorithms are often used in conjunction with expert decision makers in practical scenarios, however this fact is largely ignored when designing these algorithms. In this paper we explore how to learn predictors that can either…
Working becomes harder as we grow tired or bored. I model individuals who underestimate these changes in marginal disutility -- as implied by "projection bias" -- when deciding whether or not to continue working. This bias causes people's…