Related papers: Several Consequences of Optimality
In many social dilemmas, individuals tend to generate a situation with low payoffs instead of a system optimum ("tragedy of the commons"). Is the routing of traffic a similar problem? In order to address this question, we present…
In addition to their benefits, optimization systems can have negative economic, moral, social, and political effects on populations as well as their environments. Frameworks like fairness have been proposed to aid service providers in…
Human behavioural patterns exhibit selfish or competitive, as well as selfless or altruistic tendencies, both of which have demonstrable effects on human social and economic activity. In behavioural economics, such effects have…
Decision making is the cognitive process of selecting a course of action among multiple alternatives. As the decision maker belongs to a complex microenvironment (which contains multiple decision makers), has to make a decision where…
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…
Intelligent agents rely on AI/ML functionalities to predict the consequence of possible actions and optimise the policy. However, the effort of the research community in addressing prediction accuracy has been so intense (and successful)…
Global coordination is required to solve a wide variety of challenging collective action problems from network colorings to the tragedy of the commons. Recent empirical study shows that the presence of a few noisy autonomous agents can…
Large language models have achieved remarkable capabilities across domains, yet mechanisms underlying sophisticated reasoning remain elusive. Recent reasoning models outperform comparable instruction-tuned models on complex cognitive tasks,…
The study of intelligent systems explains behaviour in terms of economic rationality. This results in an optimization principle involving a function or utility, which states that the system will evolve until the configuration of maximum…
The conditions that can lead to the exploitative depletion of a shared resource, i.e, the tragedy of the commons, can be reformulated as a game of prisoner's dilemma: while preserving the common resource is in the best interest of the…
Understanding how biological organisms make decisions is of fundamental importance in understanding behavior. Such an understanding within evolutionary game theory so far has been sought by appealing to bounded rationality. Here, we present…
Problem solving (e.g., drug design, traffic engineering, software development) by task forces represents a substantial portion of the economy of developed countries. Here we use an agent-based model of cooperative problem solving systems to…
Current labor markets are strongly affected by the economic forces of adverse selection, moral hazard, and reputation, each of which arises due to $\textit{incomplete information}$. These economic forces will still be influential after AI…
We investigate the power of randomness in the context of a fundamental Bayesian optimal mechanism design problem--a single seller aims to maximize expected revenue by allocating multiple kinds of resources to "unit-demand" agents with…
The standard criterion of rationality in economics is the maximization of a utility function that is stable across multiple observations of an agent's choice behavior. In this paper, we discuss two notions of the money pump that…
Recent work has considered theoretical models for the behavior of agents with specific behavioral biases: rather than making decisions that optimize a given payoff function, the agent behaves inefficiently because its decisions suffer from…
Recently, a lot of attention has been given to undesired consequences of Artificial Intelligence (AI), such as unfair bias leading to discrimination, or the lack of explanations of the results of AI systems. There are several important…
Whether a population of decision-making individuals will reach a state of satisfactory decisions is a fundamental problem in studying collective behaviors. In the framework of evolutionary game theory and by means of potential functions,…
Agents care not only about the outcomes of collective decisions but also about how decisions are made. In many cases, both the outcome and the procedure affect whether agents see a decision as legitimate, justifiable, or acceptable. We…
Completeness and transitivity are standard rationality conditions in economics. However, under ambiguity, decision makers sometimes violate these requirements because of the difficulty of forming accurate predictions about ambiguous events.…