Induction over Strategic Agents

Authors: Boylu, Fidan; Aytug, Haldun; Koehler, Gary J.

Journal: Information Systems Research (2010)

DOI: 10.1287/isre.1090.0272

<jats:p> We study the problem where a decision maker needs to discover a classification rule to classify intelligent, self-interested agents. Agents may engage in strategic behavior to alter their characteristics for a favorable classification. We show how the decision maker can induce a classification rule that anticipates such behavior while still satisfying an important risk minimization principle. </jats:p>

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