Related papers: Dynamic Correlation as an Incentive Device
We characterize incentive compatible mechanisms in environments with hidden types and flexible hidden actions. Our approach introduces extended recommendation schedules that specify prescribed actions also off-path, after misreports. This…
Non-Markovian effects in an open-system dynamics are usually associated to information backflows from the environment to the system. However, the way these backflows manifest and how to detect them is unclear. A natural approach is to study…
Human perceptual and cognitive abilities are limited resources. Today, in the age of cheap information --cheap to produce, to manipulate, to disseminate--, this cognitive bottleneck translates into hypercompetition for visibility among…
Non-binding communication is common in daily life and crucial for fostering cooperation, even though it has no direct payoff consequences. However, despite robust empirical evidence, its evolutionary basis remains poorly understood. Here,…
The paper considers variable selection in linear regression models where the number of covariates is possibly much larger than the number of observations. High dimensionality of the data brings in many complications, such as (possibly…
Interactive AI systems, such as recommendation engines and virtual assistants, commonly use static user profiles and predefined rules to personalize interactions. However, these methods often fail to capture the dynamic nature of user…
Correlated equilibria enable a coordinator to influence the self-interested agents by recommending actions that no player has an incentive to deviate from. However, the effectiveness of this mechanism relies on accurate knowledge of the…
Demand response is widely employed by today's data centers to reduce energy consumption in response to the increasing of electricity cost. To incentivize users of data centers participate in the demand response programs, i.e., breaking the…
What are the value and form of optimal persuasion when information can be generated only slowly? We study this question in a dynamic model in which a 'sender' provides public information over time subject to a graduality constraint, and a…
To regulate a social system comprised of self-interested agents, economic incentives are often required to induce a desirable outcome. This incentive design problem naturally possesses a bilevel structure, in which a designer modifies the…
Human sociality depends upon the benefits of mutual aid and extensive communication. However mutual aid is made difficult by the problems of coordinating diverse norms and preferences, and communication is harried by substantial ambiguity…
A fundamental decision faced by a firm hiring employees - and a familiar one to anyone who has dealt with the academic job market, for example - is deciding what caliber of candidates to pursue. Should the firm try to increase its…
In industrial scenarios involving multi-agent collective decision-making, centralized decision-making may not be admissible due to restrictive access to individual local information, while the conflicts between participants' self-interest…
I study dynamic contracting where Sender privately observes a Markovian state and seeks to motivate Receiver, who acts. Sender provides incentives in two ways: payments, which alter payoffs ex-post, and (Bayesian) persuasion, which shapes…
In recent years, the idea of formalising and modelling fairness for algorithmic decision making (ADM) has advanced to a point of sophisticated specialisation. However, the relations between technical (formalised) and ethical discourse on…
Joint narratives are often used in the context of reconciliation interventions for people in social conflict situations, which arise, for example, due to ethnic or religious differences. The interventions aim to encourage a change in…
Motivational-interviewing-based health coaching is an effective approach for improving mental health and promoting healthy behavior change. However, the scarcity of trained human coaches and the high cost of coaching services make such…
Discovering a correlation from one variable to another variable is of fundamental scientific and practical interest. While existing correlation measures are suitable for discovering average correlation, they fail to discover hidden or…
Individuals, despite having varied life experiences and learning processes, can communicate effectively through languages. This study aims to explore the efficiency of language as a communication medium. We put forth two specific…
Varying environmental conditions affect relations between interacting individuals in social dilemmas, thus affecting also the evolution of cooperation. Oftentimes these environmental variations are seasonal and can therefore be…