Improving Information from Manipulable Data. Issue 1 (23rd June 2021)

• Record Type: Journal Article
• Authors: Frankel, Alex; Kartik, Navin
• Is Part Of: Journal of the European Economic Association. Volume 20:Issue 1(2022)
• Page Start: 79
• Page End: 115
• Publication Date: 2021-06-23
• Subjects: Economics -- Periodicals; Économie politique -- Périodiques; Science économique; Périodique électronique (Descripteur de forme); Ressource Internet (Descripteur de forme); 330
• DOI: 10.1093/jeea/jvab017
• Languages: English
• ISSNs: 1542-4766

Abstract

Abstract: Data-based decision making must account for the manipulation of data by agents who are aware of how decisions are being made and want to affect their allocations. We study a framework in which, due to such manipulation, data become less informative when decisions depend more strongly on data. We formalize why and how a decision maker should commit to underutilizing data. Doing so attenuates information loss and thereby improves allocation accuracy.