On Informational Nudging for Boundedly Rational Decision Makers

Yijie Cheng, Cedric Langbort

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

We consider the problem of informational nudge design (i.e., the strategic revelation of possibly altered information) for a boundedly rational decision-maker facing choices at every time instant. Bounded rationality manifests itself through the presence of a belief vector, which influences how provided information is used and which itself varies dynamically (possibly in a self-reinforcing, yet unwarranted way), depending on the decision maker's best response. We show that an arbitrary mixed-strategy equilibrium point can be created and stabilized given if the belief's update is slow enough and demonstrates adequate level of non-compliance to revealed information.

Original languageEnglish (US)
Title of host publication2018 IEEE Conference on Decision and Control, CDC 2018
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages4791-4796
Number of pages6
ISBN (Electronic)9781538613955
DOIs
StatePublished - Jan 18 2019
Event57th IEEE Conference on Decision and Control, CDC 2018 - Miami, United States
Duration: Dec 17 2018Dec 19 2018

Publication series

NameProceedings of the IEEE Conference on Decision and Control
Volume2018-December
ISSN (Print)0743-1546

Conference

Conference57th IEEE Conference on Decision and Control, CDC 2018
CountryUnited States
CityMiami
Period12/17/1812/19/18

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Modeling and Simulation
  • Control and Optimization

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  • Cite this

    Cheng, Y., & Langbort, C. (2019). On Informational Nudging for Boundedly Rational Decision Makers. In 2018 IEEE Conference on Decision and Control, CDC 2018 (pp. 4791-4796). [8619459] (Proceedings of the IEEE Conference on Decision and Control; Vol. 2018-December). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/CDC.2018.8619459