Related papers: A conversion between utility and information
The problem of quantification of emotions in the choice between alternatives is considered. The alternatives are evaluated in a dual manner. From one side, they are characterized by rational features defining the utility of each…
We propose an axiomatic approach which economically underpins the representation of dynamic preferences in terms of a stochastic utility function, sensitive to the information available to the decision maker. Our construction is iterative…
Strong reciprocity is a fundamental human characteristic associated with our extraordinary sociality and cooperation. Laboratory experiments on social dilemma games and many field studies have quantified well-defined levels of cooperation…
A principal uses payments conditioned on stochastic outcomes of a team project to elicit costly effort from the team members. We develop a multi-agent generalization of a classic first-order approach to contract optimization by leveraging…
Transparency and explainability are important features that responsible autonomous vehicles should possess, particularly when interacting with humans, and causal reasoning offers a strong basis to provide these qualities. However, even if…
Users can now give back energies to the grid using distributed resources. Proper incentive mechanisms are required for such users, also known as prosumers, in order to maximize the sell-back amount while maintaining the retailer's profit.…
We explore the application of a new theory of Semantic Information to the well-motivated problem of a resource foraging agent. Semantic information is defined as the subset of correlations, measured via the transfer entropy, between agent…
Sparse reward environments are known to be challenging for reinforcement learning agents. In such environments, efficient and scalable exploration is crucial. Exploration is a means by which an agent gains information about the environment.…
This paper explores an intrinsic motivation for mutual awareness, hypothesizing that humans possess a fundamental drive to understand and to be understood even in the absence of extrinsic rewards. Through simulations of the perceptual…
We study a multi-objective model on the allocation of reusable resources under model uncertainty. Heterogeneous customers arrive sequentially according to a latent stochastic process, request for certain amounts of resources, and occupy…
A primary objective of the NASA Earth-Sun Exploration Technology Office is to understand the observed Earth climate variability, thus enabling the determination and prediction of the climate's response to both natural and human-induced…
Assuming that agents' preferences satisfy first-order stochastic dominance, we show how the Expected Utility paradigm can rationalize all optimal investment choices: the optimal investment strategy in any behavioral law-invariant…
Entropic dynamics is a framework for defining dynamical systems that is aligned with the principles of information theory. In an entropic dynamics model for motion on a statistical manifold, we find that the rate of changes for expected…
In crowdsourcing when there is a lack of verification for contributed answers, output agreement mechanisms are often used to incentivize participants to provide truthful answers when the correct answer is hold by the majority. In this…
Organizations consist of individuals connected by their responsibilities, incentives, and reporting structure. These connections are aptly represented by a network, hierarchical or other, which is often used to divide tasks. A primary goal…
This work investigates a modified Schelling model within the scope and aims of Social Physics. The main purpose is to see if how the concepts of potential and kinetic energy can be represented within a computational sociological system. A…
We introduce a class of learning problems where the agent is presented with a series of tasks. Intuitively, if there is relation among those tasks, then the information gained during execution of one task has value for the execution of…
The background for the general mathematical link between utility and information theory investigated in this paper is a simple financial market model with two kinds of small traders: less informed traders and insiders, whose extra…
The von Neumann-Morgenstern (VNM) utility theorem shows that under certain axioms of rationality, decision-making is reduced to maximizing the expectation of some utility function. We extend these axioms to increasingly structured…
The efficient use of available resources is a key factor in achieving success on both personal and organizational levels. One of the crucial resources in knowledge economy is time. The ability to force others to adapt to our schedule even…