How Do Classifiers Induce Agents To Invest Effort Strategically?

Proceedings of the 2019 ACM Conference on Economics and Computation, Volume abs/1807.05307, 2019.

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Keywords:
effort allocation principal-agent strategic classification

Abstract:

Algorithms are often used to produce decision-making rules that classify or evaluate individuals. When these individuals have incentives to be classified a certain way, they may behave strategically to influence their outcomes. We develop a model for how strategic agents can invest effort in order to change the outcomes they receive, and ...More

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