TY - GEN
T1 - Towards the design of prospect-theory based human decision rules for hypothesis testing
AU - Nadendla, V. Sriram Siddhardh
AU - Brahma, Swastik
AU - Varshney, Pramod K.
N1 - Publisher Copyright:
© 2016 IEEE.
PY - 2017/2/10
Y1 - 2017/2/10
N2 - Detection rules have traditionally been designed for rational agents that minimize the Bayes risk (average decision cost). With the advent of crowd-sensing systems, there is a need to redesign binary hypothesis testing rules for behavioral agents, whose cognitive behavior is not captured by traditional utility functions such as Bayes risk. In this paper, we adopt prospect theory based models for decision makers. We consider special agent models namely optimists and pessimists in this paper, and derive optimal detection rules under different scenarios. Using an illustrative example, we also show how the decision rule of a human agent deviates from the Bayesian decision rule under various behavioral models, considered in this paper.
AB - Detection rules have traditionally been designed for rational agents that minimize the Bayes risk (average decision cost). With the advent of crowd-sensing systems, there is a need to redesign binary hypothesis testing rules for behavioral agents, whose cognitive behavior is not captured by traditional utility functions such as Bayes risk. In this paper, we adopt prospect theory based models for decision makers. We consider special agent models namely optimists and pessimists in this paper, and derive optimal detection rules under different scenarios. Using an illustrative example, we also show how the decision rule of a human agent deviates from the Bayesian decision rule under various behavioral models, considered in this paper.
KW - Binary Hypothesis Testing
KW - Optimists
KW - Pessimists
KW - Prospect Theory
UR - http://www.scopus.com/inward/record.url?scp=85015156153&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85015156153&partnerID=8YFLogxK
U2 - 10.1109/ALLERTON.2016.7852310
DO - 10.1109/ALLERTON.2016.7852310
M3 - Conference contribution
AN - SCOPUS:85015156153
T3 - 54th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2016
SP - 766
EP - 773
BT - 54th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2016
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 54th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2016
Y2 - 27 September 2016 through 30 September 2016
ER -