The strategy of experts for repeated predictions

Amir Ban*, Yossi Azar, Yishay Mansour

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations

Abstract

We investigate the behavior of experts who seek to make predictions with maximum impact on an audience. At a known future time, a certain continuous random variable will be realized. A public prediction gradually converges to the outcome, and an expert has access to a more accurate prediction. We study when the expert should reveal his information, when his reward is based on a proper scoring rule (e.g., is proportional to the change in log-likelihood of the outcome). In Azar et al. (2016), we analyzed the case where the expert may make a single prediction. In this paper, we analyze the case where the expert is allowed to revise previous predictions. This leads to a rather different set of dilemmas for the strategic expert. We find that it is optimal for the expert to always tell the truth, and to make a new prediction whenever he has a new signal. We characterize the expert’s expectation for his total reward, and show asymptotic limits.

Original languageEnglish
Title of host publicationWeb and Internet Economics - 13th International Conference, WINE 2017, Proceedings
EditorsNikhil R. Devanur, Pinyan Lu
PublisherSpringer Verlag
Pages44-57
Number of pages14
ISBN (Print)9783319719238
DOIs
StatePublished - 2017
Event13th International Conference on Web and Internet Economics, WINE 2017 - Bangalore, India
Duration: 17 Dec 201720 Dec 2017

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume10660 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference13th International Conference on Web and Internet Economics, WINE 2017
Country/TerritoryIndia
CityBangalore
Period17/12/1720/12/17

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