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Understanding the affective, cognitive and behavioural processes involved in risk taking is essential for treatment and for setting environmental conditions to limit damage. Using Temporal Difference Reinforcement Learning (TDRL) we…

Machine Learning · Computer Science 2015-02-04 Joost Broekens , Tim Baarslag

Bilateral markets, such as those for government bonds, involve decentralized and opaque transactions between market makers (MMs) and clients, posing significant challenges for traditional modeling approaches. To address these complexities,…

Trading and Market Microstructure · Quantitative Finance 2025-03-05 Alicia Vidler , Toby Walsh

This paper proposes a model of decision-making under uncertainty in which an agent is constrained in her cognitive ability to consider complex acts. We identify the complexity of an act according to the corresponding partition of state…

Theoretical Economics · Economics 2024-06-27 Yuan Gu , Chao Hung Chan

The potential impact of automation on the labor market is a topic that has generated significant interest and concern amongst scholars, policymakers, and the broader public. A number of studies have estimated occupation-specific risk…

The valuation process that economic agents undergo for investments with uncertain payoff typically depends on their statistical views on possible future outcomes, their attitudes toward risk, and, of course, the payoff structure itself.…

Pricing of Securities · Quantitative Finance 2010-01-11 Constantinos Kardaras

It is known that individual opinions on different policy issues often align to a dominant ideological dimension (e.g. "left" vs. "right") and become increasingly polarized. We provide an agent-based model that reproduces these two stylized…

Physics and Society · Physics 2020-10-28 Simon Schweighofer , David Garcia , Frank Schweitzer

Migration's influence in shaping population dynamics in times of impending climate and population crises exposes its crucial role in upholding societal cohesion. As migration impacts virtually all aspects of life, it continues to require…

Physics and Society · Physics 2023-10-24 Dino Pitoski , Ana Meštrović , Hans Schmeets

We consider statistical Markov Decision Processes where the decision maker is risk averse against model ambiguity. The latter is given by an unknown parameter which influences the transition law and the cost functions. Risk aversion is…

Optimization and Control · Mathematics 2021-07-21 Nicole Bäuerle , Ulrich Rieder

Economies across the globe were brought to their knees due to lockdowns and social restriction measures to contain the spread of the SARS-CoV-2, despite the quick switch to remote working. This downfall may be partially explained by the…

Multiagent Systems · Computer Science 2021-02-01 Peter Hardy , Leandro Soriano Marcolino , José F. Fontanari

In the event of a disaster, saving human lives is of utmost importance. For developing proper evacuation procedures and guidance systems, behavioural data on how people respond during panic and stress is crucial. In the absence of real…

Multiagent Systems · Computer Science 2019-10-03 Rohit K. Dubey , Samuel S. Sohn , Christoph Hoelscher , Mubbasir Kapadia

Stochastic models in which agents interact with their neighborhood according to a network topology are a powerful modeling framework to study the emergence of complex dynamic patterns in real-world systems. Stochastic simulations are often…

Social and Information Networks · Computer Science 2021-01-27 Gerrit Großmann , Luca Bortolussi , Verena Wolf

The basic Susceptible-Infected-Recovered (SIR) model is extended to include effects of progressive social awareness, lockdowns and anthropogenic migration. It is found that social awareness can effectively contain the spread by lowering the…

Physics and Society · Physics 2021-06-01 R. Bhattacharyya , Partha Konar

We show that disentangling sentiment-induced biases from fundamental expectations significantly improves the accuracy and consistency of probabilistic forecasts. Using data from 1994 to 2017, we analyze 15 stochastic models and…

Risk Management · Quantitative Finance 2021-01-26 Ricardo Crisóstomo

Neuronal networks can generate burst events. It remains unclear how to analyse interburst periods and their statistics. We study here the phase-space of a mean-field model, based on synaptic short-term changes, that exhibit burst and…

Statistical Mechanics · Physics 2020-12-17 Lou Zonca , David Holcman

Travel decisions tend to exhibit sensitivity to uncertainty and information processing constraints. These behavioural conditions can be characterized by a generative learning process. We propose a data-driven generative model version of…

Econometrics · Economics 2019-07-29 Melvin Wong , Bilal Farooq

This report presents results from an M1 internship dedicated to agent-based modelling and simulation of daily mobility choices. This simulation is intended to be realistic enough to serve as a basis for a serious game about the mobility…

Computers and Society · Computer Science 2024-02-16 Chloe Conrad , Carole Adam

We analyze and quantify, in a financial market with parameter uncertainty and for a Constant Relative Risk Aversion investor, the utility effects of two different boundedly rational (i.e., sub-optimal) investment strategies (namely, myopic…

Mathematical Finance · Quantitative Finance 2017-09-14 Michele Longo , Alessandra Mainini

Branching with immigration is one of the most common models for the stochastic processes observed in neuronal circuits. However, it is not observed directly and, in order to create branching-like processes, the observed spike time series is…

Statistical Mechanics · Physics 2021-09-23 Johannes Pausch

Cooperative dynamics are central to our understanding of many phenomena in living and complex systems. However, we lack a universal mechanism to explain the emergence of cooperation. We present a novel framework for modelling social dilemma…

Physics and Society · Physics 2025-02-27 Jay Armas , Wout Merbis , Janusz Meylahn , Soroush Rafiee Rad , Mauricio J. del Razo

The number of recurrent events before a terminating event is often of interest. For instance, death terminates an individual's process of rehospitalizations and the number of rehospitalizations is an important indicator of economic cost. We…

Methodology · Statistics 2021-12-30 Willem van den Boom , Maria De Iorio , Marta Tallarita
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