Information Systems Research, 2010, Volume 21,
Issue 1, Page 170-189.
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.
Keywords: adversarial learning; discriminant analysis; generalization; principal-agent; strategic gaming