| Article ID: | iaor20103580 |
| Volume: | 21 |
| Issue: | 1 |
| Start Page Number: | 170 |
| End Page Number: | 189 |
| Publication Date: | Mar 2010 |
| Journal: | Information Systems Research |
| Authors: | Aytug Haldun, Koehler Gary J, Boylu Fidan |
We study the problem where a decision maker needs to discover a classification rule to classify intelligent, self-interested agents. Agents may engage in strategic behavior to alter their characteristics for a favorable classification. We show how the decision maker can induce a classification rule that anticipates such behavior while still satisfying an important risk minimization principle.