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Instead of testing for unanimous agreement, I propose learning how broad of a consensus favors one distribution over another (of earnings, productivity, asset returns, test scores, etc.). Specifically, given a sample from each of two…

Econometrics · Economics 2024-08-27 David M. Kaplan

This paper develops a framework to study the statistical power of revealed-preference tests. With randomly sampled budgets and mild smoothness of demand, statistical learning implies that any model consistent with the data must approximate…

Theoretical Economics · Economics 2026-02-12 Charles Gauthier , Raghav Malhotra , Agustin Troccoli Moretti

Preference-based reward learning is a popular technique for teaching robots and autonomous systems how a human user wants them to perform a task. Previous works have shown that actively synthesizing preference queries to maximize…

Robotics · Computer Science 2024-03-12 Evan Ellis , Gaurav R. Ghosal , Stuart J. Russell , Anca Dragan , Erdem Bıyık

Personalized decision making targets the behavior of a specific individual, while population-based decision making concerns a sub-population resembling that individual. This paper clarifies the distinction between the two and explains why…

Artificial Intelligence · Computer Science 2022-08-23 Scott Mueller , Judea Pearl

We study the evolution of preferences in multi-population settings that allow matches across distinct populations. Each individual has subjective preferences over potential outcomes, and chooses a best response based on his preferences and…

Computer Science and Game Theory · Computer Science 2024-09-20 Yu-Sung Tu , Wei-Torng Juang

Individual choices often depend on the order in which the decisions are made. In this paper, we expose a general theory of measurable systems (an example of which is an individual's preferences) allowing for incompatible (non-commuting)…

Physics and Society · Physics 2007-06-20 V. I. Danilov , A. Lambert-Mogiliansky

Decisions by humans depend on their estimations given some uncertain sensory data. These decisions can also be influenced by the behavior of others. Here we present a mathematical model to quantify this influence, inviting a further study…

Physics and Society · Physics 2012-09-25 Gabriel Madirolas , Alfonso Perez-Escudero , Gonzalo G. de Polavieja

A statistical generalization is made of microeconomics in the spirit of going from classical to statistical mechanics. The price and quantity of every commodity1 traded in the market, at each instant of time, is considered to be an…

General Finance · Quantitative Finance 2012-12-03 Belal E. Baaquie

We introduce normalized nonnegative models (NNM) for explorative data analysis. NNMs are partial convexifications of models from probability theory. We demonstrate their value at the example of item recommendation. We show that NNM-based…

Machine Learning · Computer Science 2015-11-17 Cyril Stark

The present paper studies a large class of temperature dependent probability distributions and shows that entropy and energy can be defined in such a way that these probability distributions are the equilibrium states of a generalized…

Statistical Mechanics · Physics 2015-06-24 Jan Naudts

The applications of techniques from statistical (and classical) mechanics to model interesting problems in economics and finance has produced valuable results. The principal movement which has steered this research direction is known under…

General Finance · Quantitative Finance 2015-11-23 Emmanuel Haven , Sandro Sozzo

Real-world generalization, e.g., deciding to approach a never-seen-before animal, relies on contextual information as well as previous experiences. Such a seemingly easy behavioral choice requires the interplay of multiple neural…

Neurons and Cognition · Quantitative Biology 2022-01-17 Peer Herholz , Eddy Fortier , Mariya Toneva , Nicolas Farrugia , Leila Wehbe , Valentina Borghesani

Choice modeling is at the core of understanding how changes to the competitive landscape affect consumer choices and reshape market equilibria. In this paper, we propose a fundamental characterization of choice functions that encompasses a…

Econometrics · Economics 2024-02-21 Amandeep Singh , Ye Liu , Hema Yoganarasimhan

Various tasks in decision making and decision support systems require selecting a preferred subset of a given set of items. Here we focus on problems where the individual items are described using a set of characterizing attributes, and a…

Artificial Intelligence · Computer Science 2014-01-16 Maxim Binshtok , Ronen I. Brafman , Carmel Domshlak , Solomon Eyal Shimony

We present a novel task that measures how people generalize objects' causal powers based on observing a single (Experiment 1) or a few (Experiment 2) causal interactions between object pairs. We propose a computational modeling framework…

Artificial Intelligence · Computer Science 2021-11-25 Bonan Zhao , Christopher G. Lucas , Neil R. Bramley

Categorical random variables are a common staple in machine learning methods and other applications across disciplines. Many times, correlation within categorical predictors exists, and has been noted to have an effect on various algorithm…

Probability · Mathematics 2017-01-25 Rachel Traylor

The ability to uncover preferences from choices is fundamental for both positive economics and welfare analysis. Overwhelming evidence shows that choice is stochastic, which has given rise to random utility models as the dominant paradigm…

General Economics · Economics 2018-11-07 Carlos Alos-Ferrer , Ernst Fehr , Nick Netzer

A most debated topic of the last years is whether simple statistical physics models can explain collective features of social dynamics. A necessary step in this line of endeavour is to find regularities in data referring to large scale…

Physics and Society · Physics 2009-11-13 Santo Fortunato , Claudio Castellano

The Price equation partitions the change in the expected value of a population measure. The first component describes the partial change caused by altered frequencies. The second component describes the partial change caused by altered…

Populations and Evolution · Quantitative Biology 2020-03-23 Steven A. Frank , William Godsoe

The objective of this work is the investigation of complexity, asymmetry, stochasticity and non-linearity of the financial and economic systems by using the tools of statistical mechanics and information theory. More precisely, this thesis…

Statistical Finance · Quantitative Finance 2024-08-30 Rubina Zadourian