Induction over Strategic Agents
Published Online:19 Feb 2010https://doi.org/10.1287/isre.1090.0272
Abstract
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.
