GT Lab Internal Seminar on December, 15: Maxim Senkov (CERGE-EI, Prague)

Topic: When the bias is useful: delegation to a rationally inattentive agent
Date & Time: December, 15; 15:00 - 16:00
Where: St.Petersburg, 3A Kantemirovskaya st. (HSE)

Maxim Senkov (CERGE-EI, Prague) will give a talk on When the bias is useful: delegation to a rationally inattentive agent.

Time: 15:00 - 16:00
Abstract: A principal needs to delegate a decision under uncertainty to an agent and chooses among the candidates who differ in their prior beliefs. Prior to making the decision, agents can flexibly acquire costly information. We show that the principal generally benefits from delegation whenever the agent's belief differs from the belief of the principal. We also show that the same choice probabilities can be implemented in the best alternative choice problem by the usage of the system of bonuses. However, this equivalence result does not necessarily hold in the general problem formulation.

If you are subscribed to our newsletter, the venue details will be included in the announcement. If you are not subscribed but would like to participate in the seminar, please email GT Lab's manager Elena Kusharina until December 14: ekusharina@hse.ru