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Qualitative and quantitative approaches to reasoning about uncertainty can lead to different logical systems for formalizing such reasoning, even when the language for expressing uncertainty is the same. In the case of reasoning about…

Artificial Intelligence · Computer Science 2021-04-07 Matthew Harrison-Trainor , Wesley H. Holliday , Thomas F. Icard

In this paper we study a rational inattention model in environments where the decision maker faces uncertainty about the true prior distribution over states. The decision maker seeks to select a stochastic choice rule over a finite set of…

Theoretical Economics · Economics 2023-05-08 Emerson Melo

This paper axiomatizes, in a two-stage setup, a new theory for decision under risk and ambiguity. The axiomatized preference relation $\succeq$ on the space $\tilde{V}$ of random variables induces an ambiguity index $c$ on the space…

Optimization and Control · Mathematics 2026-03-24 Roger J. A. Laeven , Mitja Stadje

Explainability of black-box machine learning models is crucial, in particular when deployed in critical applications such as medicine or autonomous cars. Existing approaches produce explanations for the predictions of models, however, how…

Machine Learning · Computer Science 2021-11-18 Jonas Schulz , Rafael Poyiadzi , Raul Santos-Rodriguez

We provide an axiomatic foundation for the representation of num\'{e}raire-invariant preferences of economic agents acting in a financial market. In a static environment, the simple axioms turn out to be equivalent to the following choice…

General Finance · Quantitative Finance 2010-11-09 Constantinos Kardaras

The fundamental problem underlying all multi-criteria decision analysis (MCDA) problems is that of dominance between any two alternatives: "Given two alternatives A and B, each described by a set criteria, is A preferred to B with respect…

Artificial Intelligence · Computer Science 2015-08-05 Ankit Agrawal

An approach is presented treating decision theory as a probabilistic theory based on quantum techniques. Accurate definitions are given and thorough analysis is accomplished for the quantum probabilities describing the choice between…

Artificial Intelligence · Computer Science 2022-06-06 V. I. Yukalov

We propose a multivariate extension of Yaari's dual theory of choice under risk. We show that a decision maker with a preference relation on multidimensional prospects that preserves first order stochastic dominance and satisfies…

Theoretical Economics · Economics 2021-02-23 Alfred Galichon , Marc Henry

Most of the stochastic orders for comparing random variables, considered in the literature, are afflicted with two main drawbacks: (i) lack of connex property and (ii) lack of consideration of any dependence structure between the random…

Methodology · Statistics 2021-03-03 Sugata Ghosh , Asok K. Nanda

We consider decision problems under uncertainty where the options available to a decision maker and the resulting outcome are related through a causal mechanism which is unknown to the decision maker. We ask how a decision maker can learn…

Artificial Intelligence · Computer Science 2018-07-04 M. Gonzalez-Soto , L. E. Sucar , H. J. Escalante

The study of intelligent systems explains behaviour in terms of economic rationality. This results in an optimization principle involving a function or utility, which states that the system will evolve until the configuration of maximum…

Information Theory · Computer Science 2024-06-18 Pedro Hack

The uncertainty principle limits quantum states such that when one observable takes predictable values there must be some other mutually unbiased observables which take uniformly random values. We show that this restrictive condition plays…

Quantum Physics · Physics 2014-08-12 Oscar C. O. Dahlsten , Andrew J. P. Garner , Vlatko Vedral

Uncertainty quantification is a critical aspect of machine learning models, providing important insights into the reliability of predictions and aiding the decision-making process in real-world applications. This paper proposes a novel way…

Machine Learning · Computer Science 2024-01-02 Yusuf Sale , Paul Hofman , Lisa Wimmer , Eyke Hüllermeier , Thomas Nagler

Making a decision is often a matter of listing and comparing positive and negative arguments. In such cases, the evaluation scale for decisions should be considered bipolar, that is, negative and positive values should be explicitly…

Artificial Intelligence · Computer Science 2014-01-16 Didier Dubois , Hélène Fargier , Jean-François Bonnefon

Existing observational approaches for learning human preferences, such as inverse reinforcement learning, usually make strong assumptions about the observability of the human's environment. However, in reality, people make many important…

Machine Learning · Statistics 2021-10-29 Cassidy Laidlaw , Stuart Russell

This paper presents an approach for developing the explanation capabilities of rule-based expert systems managing imprecise and uncertain knowledge. The treatment of uncertainty takes place in the framework of possibility theory where the…

Artificial Intelligence · Computer Science 2013-04-08 Henri Farrency , Henri Prade

If uncertainty is modelled by a probability measure, decisions are typically made by choosing the option with the highest expected utility. If an imprecise probability model is used instead, this decision rule can be generalised in several…

Artificial Intelligence · Computer Science 2020-03-27 Jasper De Bock

We design and implement lab experiments to evaluate the normative appeal of behavior arising from models of ambiguity-averse preferences. We report two main empirical findings. First, we demonstrate that behavior reflects an incomplete…

Theoretical Economics · Economics 2024-07-26 Christoph Kuzmics , Brian W. Rogers , Xiannong Zhang

Decision makers sometimes cannot observe the consequences of their actions ex-post. This paper axiomatically characterizes a decision model in which the decision maker cares about verifying that a good consequence has been achieved.…

Theoretical Economics · Economics 2026-03-03 Hendrik Rommeswinkel

We consider the problem of rationalizing choice data by a preference satisfying an arbitrary collection of invariance axioms. Examples of such axioms include quasilinearity, homotheticity, independence-type axioms for mixture spaces,…

Theoretical Economics · Economics 2024-08-09 Peter Caradonna , Christopher P. Chambers