Decision-aid or Controller? Steering Human Decision Makers with
Algorithms
- URL: http://arxiv.org/abs/2303.13712v1
- Date: Thu, 23 Mar 2023 23:24:26 GMT
- Title: Decision-aid or Controller? Steering Human Decision Makers with
Algorithms
- Authors: Ruqing Xu, Sarah Dean
- Abstract summary: We study a decision-aid algorithm that learns about the human decision maker and provides ''personalized recommendations'' to influence final decisions.
We discuss the potential applications of such algorithms and their social implications.
- Score: 5.449173263947196
- License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
- Abstract: Algorithms are used to aid human decision makers by making predictions and
recommending decisions. Currently, these algorithms are trained to optimize
prediction accuracy. What if they were optimized to control final decisions? In
this paper, we study a decision-aid algorithm that learns about the human
decision maker and provides ''personalized recommendations'' to influence final
decisions. We first consider fixed human decision functions which map
observable features and the algorithm's recommendations to final decisions. We
characterize the conditions under which perfect control over final decisions is
attainable. Under fairly general assumptions, the parameters of the human
decision function can be identified from past interactions between the
algorithm and the human decision maker, even when the algorithm was constrained
to make truthful recommendations. We then consider a decision maker who is
aware of the algorithm's manipulation and responds strategically. By posing the
setting as a variation of the cheap talk game [Crawford and Sobel, 1982], we
show that all equilibria are partition equilibria where only coarse information
is shared: the algorithm recommends an interval containing the ideal decision.
We discuss the potential applications of such algorithms and their social
implications.
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