Time：2023. 9. 19（Tuesday）14:00-1530
Venue：Building 2, Room 138, Songjiang Campus
Speaker：Liu Xiao, Associate Professor of the School of Economics and Management at Tsinghua University
Host：Professor Yang Xiaolan
Topic：The Emergence of Economic Rationality of GPT
Abstract:
As large language models (LLMs) like GPT become increasingly prevalent, it is essential that we assess their capabilities beyond language processing. This paper examines the economic rationality of GPT by instructing it to make budgetary decisions in four domains: risk, time, social, and food preferences. We measure economic rationality by assessing the consistency of GPT decisions with utility maximization in classic revealed preference theory. We find that GPT decisions are largely rational in each domain and demonstrate higher rationality scores than those of humans reported in the literature. We also find that the rationality scores are robust to the degree of randomness and demographic settings such as age and gender, but are sensitive to contexts based on the language frames of the choice situations. These results suggest the potential of LLMs to make good decisions and the need to further understand their capabilities, limitations, and underlying mechanisms.
Guest Speaker
Liu Xiao, associate professor appointed by the School of Economics and Management at Tsinghua University. She graduated with a bachelor's degree from Renmin University of China in 2006 and a doctoral degree from the University of Michigan in the United States in 2012. Research directions include experimental economics, behavioral economics, market design, and information economics. Currently serving as the deputy editor in chief of three international journals: Management Science, Journal of Economic Behavior&Organization, Journal of Behavioral and Experimental Economics. The article has been published in journals such as Management Science, Games and Economic Behavior, and Journal of Development Economics.
