Accuracy Is (Generically) Bad For Compliance
We demonstrate that the set of cost distributions under which the optimal strategy for maximizing compliance (or more generally, effort) in a binary choice environment is identical to the optimal strategy for maximizing the accuracy of the reward (minimizing Type-I and Type-II errors) is finitely shy (Anderson and Zame (2001) in the space of all smooth parameterized real-valued distributions possessing full support on the real line. In words, this implies that maximizing compliance and maximizing accuracy "almost always" call for different incentive schemes.
Publication Details
- Journal
- ArXiv.org
- Published
- 2025-05-23
- Primary Topic
- Auction Theory and Applications
- Type
- article
- Field-Weighted Citation Impact
- 0.00