Ido Erev

Reut Apel, Ido Erev, Roi Reichart et al.

Sender-receiver interactions, and specifically persuasion games, are widely researched in economic modeling and artificial intelligence. However, in the classic persuasion games setting, the messages sent from the expert to the decision-maker (DM) are abstract or well-structured signals rather than natural language messages. This paper addresses the use of natural language in persuasion games. For this purpose, we conduct an online repeated interaction experiment. At each trial of the interaction, an informed expert aims to sell an uninformed decision-maker a vacation in a hotel, by sending her a review that describes the hotel. While the expert is exposed to several scored reviews, the decision-maker observes only the single review sent by the expert, and her payoff in case she chooses to take the hotel is a random draw from the review score distribution available to the expert only. We also compare the behavioral patterns in this experiment to the equivalent patterns in similar experiments where the communication is based on the numerical values of the reviews rather than the reviews' text, and observe substantial differences which can be explained through an equilibrium analysis of the game. We consider a number of modeling approaches for our verbal communication setup, differing from each other in the model type (deep neural network vs. linear classifier), the type of features used by the model (textual, behavioral or both) and the source of the textual features (DNN-based vs. hand-crafted). Our results demonstrate that given a prefix of the interaction sequence, our models can predict the future decisions of the decision-maker, particularly when a sequential modeling approach and hand-crafted textual features are applied. Further analysis of the hand-crafted textual features allows us to make initial observations about the aspects of text that drive decision making in our setup

Ori Plonsky, Reut Apel, Eyal Ert et al.

Predicting human decisions under risk and uncertainty remains a fundamental challenge across disciplines. Existing models often struggle even in highly stylized tasks like choice between lotteries. We introduce BEAST Gradient Boosting (BEAST-GB), a hybrid model integrating behavioral theory (BEAST) with machine learning. We first present CPC18, a competition for predicting risky choice, in which BEAST-GB won. Then, using two large datasets, we demonstrate BEAST-GB predicts more accurately than neural networks trained on extensive data and dozens of existing behavioral models. BEAST-GB also generalizes robustly across unseen experimental contexts, surpassing direct empirical generalization, and helps refine and improve the behavioral theory itself. Our analyses highlight the potential of anchoring predictions on behavioral theory even in data-rich settings and even when the theory alone falters. Our results underscore how integrating machine learning with theoretical frameworks, especially those-like BEAST-designed for prediction, can improve our ability to predict and understand human behavior.