Related papers: Several Consequences of Optimality
Street-level bureaucrats, such as caseworkers and border guards routinely face the dilemma of whether to follow rigid policy or exercise discretion based on professional judgement. However, frequent overrides threaten consistency and…
We relate the strategy sets that a player ends up with after refining his own strategies according to two very different models of rationality: namely, utility maximization and regret minimization.
The sustainable use of common-pool resources (CPRs) is a major environmental governance challenge because of their possible over-exploitation. Research in this field has overlooked the feedback between user decisions and resource dynamics.…
Fairness is one of the most desirable societal principles in collective decision-making. It has been extensively studied in the past decades for its axiomatic properties and has received substantial attention from the multiagent systems…
We present infinite extensive strategy profiles with perfect information and we show that replacing finite by infinite changes the notions and the reasoning tools. The presentation uses a formalism recently developed by logicians and…
As rapid advances in Artificial Intelligence and the rise of some of history's most potent corporations meet the diminished neoliberal state, people are increasingly subject to power exercised by means of automated systems. Machine learning…
Models of economic decision makers often include idealized assumptions, such as rationality, perfect foresight, and access to all relevant pieces of information. These assumptions often assure the models' internal validity, but, at the same…
We integrate dual-process theories of human cognition with evolutionary game theory to study the evolution of automatic and controlled decision-making processes. We introduce a model where agents who make decisions using either automatic or…
Living organisms process information to interact and adapt to their changing environment with the goal of finding food, mates or averting hazards. The structure of their niche has profound repercussions by both selecting their internal…
The Random Utility Model (RUM) is the leading model to represent the aggregate choices of a heterogeneous population of preference maximizers. We show that if (and only if) preferences are sufficiently uncorrelated, RUM choices can also be…
An agent makes decisions based on multiple sources of information. In isolation, each source is well understood, but their correlation is unknown. We study the agent's robustly optimal strategies -- those that give the best possible…
The dynamical evolution of many economic, sociological, biological and physical systems tends to be dominated by a relatively small number of unexpected, large changes (`extreme events'). We study the large, internal changes produced in a…
The principle that rational agents should maximize expected utility or choiceworthiness is intuitively plausible in many ordinary cases of decision-making under uncertainty. But it is less plausible in cases of extreme, low-probability risk…
Collective action and group formation are fundamental behaviors among both organisms cooperating to maximize their fitness, and people forming socioeconomic organizations. Researchers have extensively explored social interaction structures…
Machine learning (ML) systems across many application areas are increasingly demonstrating performance that is beyond that of humans. In response to the proliferation of such models, the field of Explainable AI (XAI) has sought to develop…
We study the problem of a planner who resolves risk-return trade-offs - like financial investment decisions - on behalf of a collective of agents with heterogeneous risk preferences. The planner's objective is a two-stage utility functional…
This paper analyzes a dynamic interaction between a fully rational, privately informed sender and a boundedly rational, uninformed receiver with memory constraints. The sender controls the flow of information, while the receiver designs a…
The idea of augmented or hybrid intelligence offers a compelling vision for combining human and AI capabilities, especially in tasks where human wisdom, expertise, or common sense are essential. Unfortunately, human reasoning can be flawed…
The efficient use of available resources is a key factor in achieving success on both personal and organizational levels. One of the crucial resources in knowledge economy is time. The ability to force others to adapt to our schedule even…
General criterion for best efficiency of the interaction of a complex system with an ever-changing environment is derived. Its exclusive property, set by boundedness, is that the highly non-trivial interplay between parameters that…