The Double-Edged Sword of Behavioral Responses in Strategic Classification: Theory and User Studies
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Abstract (arXiv)
When humans are subject to an algorithmic decision system, they can strategically adjust their behavior accordingly (``game'' the system). While a growing line of literature on strategic classification has used game-theoretic modeling to understand and mitigate such gaming, these existing works consider standard models of fully rational agents. In this paper, we propose a strategic classification model that considers behavioral biases in human responses to algorithms. We show how misperceptions of a classifier (specifically, of its feature weights) can lead to different types of discrepancies between biased and rational agents' responses, and identify when behavioral agents over- or under-invest in different features. We also show that strategic agents with behavioral biases can benefit or (perhaps, unexpectedly) harm the firm compared to fully rational strategic agents. We complement our analytical results with user studies, which support our hypothesis of behavioral biases in human responses to the algorithm. Together, our findings highlight the need to account for human (cognitive) biases when designing AI systems, and providing explanations of them, to strategic human in the loop.
Key facts. Cited by 9 papers in the map (data through 14 Oct 2026). Builds on 30 of its 57 references that are in the map. First posted on arXiv 23 Oct 2024.
Builds on
30 of 57 references.
References · 30
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18 more
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Built on by
Citing papers per year: 2025: 5; 2026: 4.
9 papers.
- 2025Incentivizing Desirable Effort Profiles in Strategic Classification: The Role of Causality and Uncertaintycited by 8
- 2025How Strategic Agents Respond: Comparing Analytical Models with LLM-Generated Responses in Strategic Classificationcited by 5
- 2025Incentive-Aware Machine Learning; Robustness, Fairness, Improvement & Causalitycited by 5
- 2025Anticipating Gaming to Incentivize Improvement: Guiding Agents in (Fair) Strategic Classificationcited by 2
- 2025The Disparate Effects of Partial Information in Bayesian Strategic Learningcited by 1
- 2026Beyond Rational Illusion: Behaviorally Realistic Strategic Classificationcited by 1
- 2026Off-Policy Evaluation with Strategic Agents via Local Disclosurecited by 0
- 2026Robust Strategic Classification under Decision-Dependent Cost Uncertaintycited by 0
- 2026Strategic Classification Has a Missing Lever: Audit Riskcited by 0
- 2026Strategic Classification Has a Missing Lever: Audit Risk18 Sep 2026
- 2026Robust Strategic Classification under Decision-Dependent Cost Uncertainty29 Jun 2026
- 2026Off-Policy Evaluation with Strategic Agents via Local Disclosure5 Jun 2026
- 2026Beyond Rational Illusion: Behaviorally Realistic Strategic Classification19 May 2026
- 2025The Disparate Effects of Partial Information in Bayesian Strategic Learning31 May 2025
- 2025Anticipating Gaming to Incentivize Improvement: Guiding Agents in (Fair) Strategic Classification8 May 2025
- 2025Incentive-Aware Machine Learning; Robustness, Fairness, Improvement & Causality8 May 2025
- 2025Incentivizing Desirable Effort Profiles in Strategic Classification: The Role of Causality and Uncertainty10 Feb 2025
- 2025How Strategic Agents Respond: Comparing Analytical Models with LLM-Generated Responses in Strategic Classification20 Jan 2025