Behavioral Economics for Human-in-the-loop Control Systems Design: Overconfidence and the hot hand fallacy

Successful design of human-in-the-loop control systems requires appropriate models for human decision makers. Whilst most paradigms adopted in the control systems literature hide the (limited) decision capability of humans, in behavioral economics individual decision making and optimization processes are well-known to be affected by perceptual and behavioral biases. Our goal is to enrich control engineering with some insights from behavioral economics research through exposing such biases in con...