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This paper studies a dynamic information acquisition model with payoff externalities. Two players can acquire costly information about an unknown state before taking a safe or risky action. Both information and the action taken are private.…

Theoretical Economics · Economics 2022-07-08 Guo Bai

The unparalleled ability of machine learning algorithms to learn patterns from data also enables them to incorporate biases embedded within. A biased model can then make decisions that disproportionately harm certain groups in society. Much…

Machine Learning · Computer Science 2022-06-28 José Pombal , Pedro Saleiro , Mário A. T. Figueiredo , Pedro Bizarro

We characterize the identified sets of a wide range of stochastic choice models, including random utility, various models of boundedly-rational behavior, and dynamic discrete choice. In each of these settings, we show two distributions over…

Theoretical Economics · Economics 2026-02-24 Peter Caradonna , Christopher Turansick

Reinforcement learning systems are often concerned with balancing exploration of untested actions against exploitation of actions that are known to be good. The benefit of exploration can be estimated using the classical notion of Value of…

Artificial Intelligence · Computer Science 2013-01-30 Richard Dearden , Nir Friedman , David Andre

Active inference proposes expected free energy as an objective for planning and decision-making to adequately balance exploitative and explorative drives in learning agents. The exploitative drive, or what an agent wants to achieve, is…

Artificial Intelligence · Computer Science 2025-12-04 Filippo Torresan , Ryota Kanai , Manuel Baltieri

We explore the connection between an agent's decision problem and her ranking of information structures. We find that a finite amount of ordinal data on the agent's ranking of experiments is enough to identify her (finite) set of…

Theoretical Economics · Economics 2024-04-02 Mark Whitmeyer

A recent line of work, starting with Beigman and Vohra (2006) and Zadimoghaddam and Roth (2012), has addressed the problem of {\em learning} a utility function from revealed preference data. The goal here is to make use of past data…

Computer Science and Game Theory · Computer Science 2014-07-31 Maria-Florina Balcan , Amit Daniely , Ruta Mehta , Ruth Urner , Vijay V. Vazirani

The dynamics of technological, economic and social phenomena is controlled by how humans organize their daily tasks in response to both endogenous and exogenous stimulations. Queueing theory is believed to provide a generic answer to…

Physics and Society · Physics 2013-05-29 Thomas Maillart , Didier Sornette , Stefan Frei , Thomas Duebendorfer , Alexander Saichev

The hidden-action model captures a fundamental problem of principal-agent theory and provides an optimal sharing rule when only the outcome but not the effort can be observed. However, the hidden-action model builds on various explicit and…

General Economics · Economics 2020-04-15 Stephan Leitner , Friederike Wall

We consider the disclosure problem of a sender with a large data set of hard evidence who wants to persuade a receiver to take higher actions. Because the receiver will make inferences based on the distribution of the data they see, the…

Theoretical Economics · Economics 2023-11-03 Ying Gao

This paper considers a problem where multiple users make repeated decisions based on their own observed events. The events and decisions at each time step determine the values of a utility function and a collection of penalty functions. The…

Optimization and Control · Mathematics 2013-05-13 Michael J. Neely

We model the joint distribution of choice probabilities and decision times in binary choice tasks as the solution to a problem of optimal sequential sampling, where the agent is uncertain of the utility of each action and pays a constant…

Neurons and Cognition · Quantitative Biology 2015-05-14 Drew Fudenberg , Philipp Strack , Tomasz Strzalecki

In persuasion problems where the receiver's action is one-dimensional and his utility is single-peaked, optimal signals are characterized by duality, based on a first-order approach to the receiver's problem. A signal is optimal iff the…

Theoretical Economics · Economics 2022-08-31 Anton Kolotilin , Roberto Corrao , Alexander Wolitzky

Methods for learning optimal policies in autonomous agents often assume that the way the domain is conceptualised---its possible states and actions and their causal structure---is known in advance and does not change during learning. This…

Artificial Intelligence · Computer Science 2018-01-11 Craig Innes , Alex Lascarides , Stefano V Albrecht , Subramanian Ramamoorthy , Benjamin Rosman

We develop a mathematical and interpretative foundation for the enterprise of decision-theoretic statistical causality (DT), which is a straightforward way of representing and addressing causal questions. DT reframes causal inference as…

Statistics Theory · Mathematics 2020-04-28 A. Philip Dawid

Consider a setting in which a policy maker assigns subjects to treatments, observing each outcome before the next subject arrives. Initially, it is unknown which treatment is best, but the sequential nature of the problem permits learning…

Econometrics · Economics 2020-08-13 Anders Bredahl Kock , David Preinerstorfer , Bezirgen Veliyev

This paper looks at predictability problems, i.e., wherein an agent must choose its strategy in order to optimize the predictions that an external observer could make. We address these problems while taking into account uncertainties on the…

Artificial Intelligence · Computer Science 2024-10-08 Salomé Lepers , Sophie Lemonnier , Vincent Thomas , Olivier Buffet

We present our approach to the problem of how an agent, within an economic Multi-Agent System, can determine when it should behave strategically (i.e. learn and use models of other agents), and when it should act as a simple price-taker. We…

Multiagent Systems · Computer Science 2007-05-23 Jose M. Vidal , Edmund H. Durfee

We examine the tuning of cooperative behavior in repeated multi-agent games using an analytically tractable, continuous-time, nonlinear model of opinion dynamics. Each modeled agent updates its real-valued opinion about each available…

Physics and Society · Physics 2021-11-24 Shinkyu Park , Anastasia Bizyaeva , Mari Kawakatsu , Alessio Franci , Naomi Ehrich Leonard

An agent has access to multiple information sources, each of which provides information about a different attribute of an unknown state. Information is acquired continuously -- where the agent chooses both which sources to sample from, and…

Theoretical Economics · Economics 2021-04-27 Annie Liang , Xiaosheng Mu , Vasilis Syrgkanis