SearcharxivSearch

arXiv subjects

Christopher Kops

Publications and source records attributed to Christopher Kops.

3 recordsLinked to original sources

Identifying Behavioral Types

We study identification in models of aggregate choice generated by unobserved behavioral types. An analyst observes only aggregate choice behavior, while the population distribution of types and their type-level choice patterns are latent. Assuming only minimal and purely qualitative prior knowledge of the process generating type-level choice probabilities, we characterize necessary and sufficient conditions for identifiability. Identification obtains if and only if the data exhibit sufficient cross-type behavioral heterogeneity, which we characterize equivalently through combinatorial matching conditions between types and alternatives, and through algebraic properties of the matrices mapping type-level to aggregate choice behavior.

econ.TH

Choice via AI

This paper proposes a model of choice via agentic artificial intelligence (AI). A key feature is that the AI may misinterpret a menu before recommending what to choose. A single acyclicity condition guarantees that there is a monotonic interpretation and a strict preference relation that together rationalize the AI's recommendations. Since this preference is in general not unique, there is no safeguard against it misaligning with that of a decision maker. What enables the verification of such AI alignment is interpretations satisfying double monotonicity. Indeed, double monotonicity ensures full identifiability and internal consistency. But, an additional idempotence property is required to guarantee that recommendations are fully rational and remain grounded within the original feasible set.

econ.TH

A general definition of perfect equilibrium

We propose a general definition of perfect equilibrium which is applicable to a wide class of games. A key feature is the concept of completely mixed nets of strategies, based on a more detailed notion of carrier of a strategy. Under standard topological conditions, this definition yields a nonempty and compact set of perfect equilibria. For finite action sets, our notion of perfect equilibrium coincides with Selten's (1975) original notion. In the compact-continuous case, perfect equilibria are weak perfect equilibria in the sense of Simon and Stinchcombe (1995). In the finitely additive case, perfect equilibria in the sense of Marinacci (1997) are perfect. Under mild conditions, perfect equilibrium meets game-theoretic desiderata such as limit undominatedness and invariance. We provide a variety of examples to motivate and illustrate our definition. Notably, examples include applications to games with discontinuous payoffs and games played with finitely additive strategies.

econ.TH