A Novel Approach to Evaluate Robustness of Incentive Mechanism against Bounded Rationality (Doctoral Consortium)

Zehong Hu (Nanyang Technological University)

Abstract

In this abstract, we first propose a general robustness definition as the upper-bound of the stable region of an equilibrium strategy by generalizing existing bounded rationality models. Then, we develop a robustness evaluation framework, of which a key component is the stability test given a certain level of bounded rationality.