Strategic Cost Selection

Strategic cost selection examines how agents strategically choose costs or prices to optimize their outcomes within a system, considering constraints and interactions with other agents. Current research focuses on modeling these strategic choices using game theory, exploring various allocation mechanisms (e.g., voting-based systems, resource allocation games) and incorporating factors like agent heterogeneity and bounded rationality. This research is significant for improving resource allocation in diverse settings, from participatory budgeting and organizational innovation to federated learning and market making, by providing insights into efficient and fair resource distribution.