Eliciting Information from participants with Competing Incentives and Dependent Beliefs
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In this paper, we study belief elicitation about an uncertain future event, where the reports will affect a principal's decision. We study two problems that can arise in this setting: (1) Agents may have an interest in the outcome of the principal's decision. We show that with intrinsic competing incentives (an interest in a decision that is internal to an agent) truthfulness cannot be guaranteed and there is a fundamental tradeoff between how much the principal allows reports to influence the decision, how much budget the principal has, and the degree to which a mechanism can be manipulated. Furthermore, we show that the Quadratic Scoring Rule is worst-case optimal in minimizing the degree of manipulation. In contrast, we obtain positive results and truthful mechanisms in a setting where the competing incentives stem instead from a rational briber who wants to promote a particular decision. We show that the budget required to achieve this robustness scales with the sum of squares of the degree to which agent reports can influence the decision. (2) We study the setting where the future event is only observed conditionally on the decision taken. We give a category of mechanisms that are truthful when agent beliefs are independent but fails with dependent beliefs, and show how to resolve this through a decoupling method.
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