Related papers: Defaults: a double-edged sword in governing common…
When does society eventually learn the truth, or take the correct action, via observational learning? In a general model of sequential learning over social networks, we identify a simple condition for learning dubbed excludability.…
This paper shows how to use a randomized saturation experimental design to identify and estimate causal effects in the presence of spillovers--one person's treatment may affect another's outcome--and one-sided non-compliance--subjects can…
The pursuit of highest payoffs in evolutionary social dilemmas is risky and sometimes inferior to conformity. Choosing the most common strategy within the interaction range is safer because it ensures that the payoff of an individual will…
We propose a model for the credit markets in which the random default times of bonds are assumed to be given as functions of one or more independent "market factors". Market participants are assumed to have partial information about each of…
We study the incentives of banks in a financial network, where the network consists of debt contracts and credit default swaps (CDSs) between banks. One of the most important questions in such a system is the problem of deciding which of…
Inertia and context-dependent choice effects are well-studied classes of behavioural phenomena. While much is known about these effects in isolation, little is known about whether one of them "dominates" the other when both can potentially…
Games with environmental feedback have become a crucial area of study across various scientific domains, modelling the dynamic interplay between human decisions and environmental changes, and highlighting the consequences of our choices on…
While defaults are rare events, losses can be substantial even for credit portfolios with a large number of contracts. Therefore, not only a good evaluation of the probability of default is crucial, but also the severity of losses needs to…
As a firm varies the price of a product, consumers exhibit reference effects, making purchase decisions based not only on the prevailing price but also the product's price history. We consider the problem of learning such behavioral…
Without contributing, defectors take more benefit from social resources than cooperators which is the reflection of a specific character of individuals. However, natural physical mechanisms of our society promote cooperation. Thus, in the…
How should we decide which fairness criteria or definitions to adopt in machine learning systems? To answer this question, we must study the fairness preferences of actual users of machine learning systems. Stringent parity constraints on…
Partner selection is an important process in many social interactions, permitting individuals to decrease the risks associated with cooperation. In large populations, defectors may escape punishment by roving from partner to partner, but…
People often engage in costly cooperation, especially in repeated interactions. When deciding whether to cooperate, individuals typically take into account how others have acted in the past. For instance, when one person is deciding whether…
We study online weighted bipartite matching of reusable resources where an adversarial sequence of requests for resources arrive over time. A resource that is matched is 'used' for a random duration, drawn independently from a…
Understanding how cooperation emerges in public goods games is crucial for addressing societal challenges. While optional participation can establish cooperation without identifying cooperators, it relies on specific assumptions -- that…
This study investigates the effect of behavioral mistakes on the evolutionary stability of the cooperative equilibrium in a repeated public goods game. Many studies show that behavioral mistakes have detrimental effects on cooperation…
Technical Debt management decisions always imply a trade-off among outcomes at different points in time. In such intertemporal choices, distant outcomes are often valued lower than close ones, a phenomenon known as temporal discounting.…
This paper studies a finite-fuel two-dimensional degenerate singular stochastic control problem under regime switching that is motivated by the optimal irreversible extraction problem of an exhaustible commodity. A company extracts a…
In a world of information overload, understanding how we can most effectively manage information is crucial to success. We set out to understand how people view deletion, the removal of material no longer needed: does it help by reducing…
We study the influence of selfish vs. polite behaviours on the dynamics of a pedestrian evacuation through a narrow exit. To this end, experiments involving about 80 participants with distinct prescribed behaviours are performed;…