Effects of Subjective Biases on Strategic Information Transmission

Abstract

In this paper, we study the effects of subjective biases on strategic information transmission (SIT) within a Stackelberg game setting, where a human transmitter (leader) communicates an encoded source message to a human receiver (follower) so that the receiver decodes back a desired version of the original source signal. We model human decisions using Rieger-Wang’s prospect theory, which is an extension of traditional prospect theory to continuous decision spaces. Having found a closedform expression for the receiver’s best response strategy under any general setting, we consider two settings: Gaussian SIT games and exponential SIT games. While the Gaussian SIT games result in strategies that are independent of subjective biases of both the transmitter and the receiver, we show that the equilibrium strategies in exponential SIT games depend on the subjective biases of both the transmitter and the receiver. Numerical results are presented to illustrate results in both Gaussian and exponential settings.

Department(s)

Computer Science

Keywords and Phrases

Communication systems; Economics; Exponential test channel; Games; Gaussian test channel; Integrated circuit modeling; Nonlinear distortion; Prospect Theory; Radio transmitters; Receivers; Strategic Information Transmission

International Standard Serial Number (ISSN)

0090-6778

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2018 Institute of Electrical and Electronics Engineers (IEEE), All rights reserved.

Publication Date

01 Dec 2018

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