Related papers: Hedging and production decisions under uncertainty…
It is no secret that many projects fail, regardless of the business sector, software projects are notoriously disaster victims, not necessarily because of technological failure, but more often due to their uncertainties. The threats…
Majorisation, also called rearrangement inequalities, yields a type of stochastic ordering in which two or more distributions can be compared. In this paper we argue that majorisation is a good candidate as a theory for uncertainty. We…
The complexity of the operating environment and required technologies for highly automated driving is unprecedented. A different type of threat to safe operation besides the fault-error-failure model by Laprie et al. arises in the form of…
Motivated by the recently experienced systemic shocks (the COVID-19 pandemic and the full-fledged Russia's war of aggression against Ukraine) - that have created new forms of uncertainties to our supplies - this paper explores the supply…
This position paper reflects on the state-of-the-art in decision-making under uncertainty. A classical assumption is that probabilities can sufficiently capture all uncertainty in a system. In this paper, the focus is on the uncertainty…
This paper examines strategic trading under incomplete information, where firms lack full knowledge of key aspects of their competitors' trading strategies such as target sizes and market impact models. We extend previous work on…
The notion of uncertainty is of major importance in machine learning and constitutes a key element of machine learning methodology. In line with the statistical tradition, uncertainty has long been perceived as almost synonymous with…
Reliable estimation of predictive uncertainty is crucial for machine learning applications, particularly in high-stakes scenarios where hedging against risks is essential. Despite its significance, there is no universal agreement on how to…
Uncertainty may be taken to characterize inferences, their conclusions, their premises or all three. Under some treatments of uncertainty, the inferences itself is never characterized by uncertainty. We explore both the significance of…
The last few years has seen a growing debate about techniques for managing uncertainty in AI systems. Unfortunately this debate has been cast as a rivalry between AI methods and classical probability based ones. Three arguments for…
The appreciation and utilisation of risk and uncertainty can play a key role in helping to solve some of the many ethical issues that are posed by AI. Understanding the uncertainties can allow algorithms to make better decisions by…
There are two reasons why uncertainty may not be adequately described by Probability Theory. The first one is due to unique or nearly-unique events, that either never realized or occurred too seldom for frequencies to be reliably measured.…
We study a notion of good-deal hedging, that corresponds to good-deal valuation for generalized good-deal constraints. Under model uncertainty about the market prices of risk of hedging assets, a robust approach leads to a reduction or even…
The quality of consequences in a decision making problem under (severe) uncertainty must often be compared among different targets (goals, objectives) simultaneously. In addition, the evaluations of a consequence's performance under the…
Supply chain network is critical to serving customers, so the most common practices are to determine the number, location, and capacity of facilities. But at the same time, uncertainties and risks must be taken into account in order to…
We give elementary examples within a framework for studying decisions under uncertainty where probabilities are only roughly known. The framework, in gambling terms, is that the size of a bet is proportional to the gambler's perceived…
This survey reviews recent developments in revealed preference theory. It discusses the testable implications of theories of choice that are germane to specific economic environments. The focus is on expected utility in risky environments;…
We propose a new approach for solving a class of discrete decision making problems under uncertainty with positive cost. This issue concerns multiple and diverse fields such as engineering, economics, artificial intelligence, cognitive…
In recent years, Large Language Models (LLMs) have become fundamental to a broad spectrum of artificial intelligence applications. As the use of LLMs expands, precisely estimating the uncertainty in their predictions has become crucial.…
A step to consilience, starting with a deconstruction of the causality of uncertainty that is embedded in the fundamentals of growth and inequality, following a construction of aggregation laws that disclose the invariance principle across…