Related papers: Risky Advice and Reputational Bias

We investigate a group choice problem of agents pursuing social status. We assume heterogeneous agents want to signal their private information (ability, income, patience, altruism, etc.) to others, facing tradeoff between "outside status"…

Personalisation of products and services is fast becoming the driver of success in banking and commerce. Machine learning holds the promise of gaining a deeper understanding of and tailoring to customers' needs and preferences. Whereas…

The concept of reputation is widely used as a measure of trustworthiness based on ratings from members in a community. The adoption of reputation systems, however, relies on their ability to capture the actual trustworthiness of a target.…

We describe a simple model for speculative trading based on adaptive behavior of economic agents.The adaptive behavior is expressed through a feedback mechanism for changing agents' stock-to-bond ratios, depending on the past performance of…

Conventional learning with expert advice methods assumes a learner is always receiving the outcome (e.g., class labels) of every incoming training instance at the end of each trial. In real applications, acquiring the outcome from oracle…

We study sequential decision making in environments where rewards are only partially observed, but can be modeled as a function of observed contexts and the chosen action by the decision maker. This setting, known as contextual bandits,…

Scoring rules for eliciting expert predictions of random variables are usually developed assuming that experts derive utility only from the quality of their predictions (e.g., score awarded by the rule, or payoff in a prediction market). We…

Well-known for its simplicity and effectiveness in classification, AdaBoost, however, suffers from overfitting when class-conditional distributions have significant overlap. Moreover, it is very sensitive to noise that appears in the…

Reputation plays a crucial role in social interactions by affecting the fitness of individuals during an evolutionary process. Previous works have extensively studied the result of imitation dynamics without focusing on potential irrational…

Reputation is generally defined as the opinion of a group on an aspect of a thing. This paper presents a reputation model that follows a probabilistic modelling of opinions based on three main concepts: (1) the value of an opinion decays…

We address challenges in variable selection with highly correlated data that are frequently present in finance, economics, but also in complex natural systems as e.g. weather. We develop a robustified version of the knockoff framework,…

Cooperation underlies many natural and artificial systems. While voluntary participation can sustain cooperation without informational assumptions, real interactions are rarely anonymous, leaving the joint effects of participation and…

We develop a hierarchical Bayesian dynamic game for competitive inventory and pricing under incomplete information. Two firms repeatedly choose order quantities and prices while facing two layers of uncertainty: unknown market demand and…

We examine a patient player's behavior when he can build reputations in front of a sequence of myopic opponents. With positive probability, the patient player is a commitment type who plays his Stackelberg action in every period. We…

Many real-life decisions involve both perceptual processes and weighing the consequences of different actions. However, the neural mechanisms underlying perceptual decisions have typically been examined separately from those underlying…

Communication is fundamental to sustaining reciprocity and cooperation in strategic interactions. We identify and formulate the influence attribution problem as the central optimization difficulty inherent in such dynamics for a learning…

We introduce a utility-driven bounded-confidence model of opinion dynamics in which opinions associated with higher utility exert stronger social influence. In the regime where all agents belong to a single opinion cluster, we derive a…

Empirical economists are often deterred from the application of fixed effects binary choice models mainly for two reasons: the incidental parameter problem and the computational challenge even in moderately large panels. Using the example…

Traditionally, especially in academic research in recommender systems, the focus has been solely on the satisfaction of the end-user. While user satisfaction has, indeed, been associated with the success of the business, it is not the only…

We study route choice in a repeated routing game where an uncertain state of nature determines link latency functions, and agents receive private route recommendation. The state is sampled in an i.i.d. manner in every round from a publicly…