TY - GEN
T1 - On Informational Nudging for Boundedly Rational Decision Makers
AU - Cheng, Yijie
AU - Langbort, Cedric
N1 - This work was supported in part by an ONR grant. Y. Cheng is with the Department of Mechanical Science and Engineering & Coordinated Science Laboratory, University of Illinois at Urbana-Champaign, Urbana, IL 61820, USA [email protected] C. Langbort is with the Department of Aerospace Engineering & Co-ordinated Science Laboratary, University of Illinois at Urbana-Champaign, Urbana, IL 61820, USA [email protected]
PY - 2018/7/2
Y1 - 2018/7/2
N2 - 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.
AB - 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.
UR - https://www.scopus.com/pages/publications/85062170837
UR - https://www.scopus.com/pages/publications/85062170837#tab=citedBy
U2 - 10.1109/CDC.2018.8619459
DO - 10.1109/CDC.2018.8619459
M3 - Conference contribution
AN - SCOPUS:85062170837
T3 - Proceedings of the IEEE Conference on Decision and Control
SP - 4791
EP - 4796
BT - 2018 IEEE Conference on Decision and Control, CDC 2018
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 57th IEEE Conference on Decision and Control, CDC 2018
Y2 - 17 December 2018 through 19 December 2018
ER -