Related papers: Testing Consumer Rationality using Perfect Graphs …
To study the assumption that the utility maximization hypothesis implicitly adds to consumer theory, we consider a mathematical representation of pre-marginal revolution consumer theory based on subjective exchange ratios. We introduce two…
We study optimal bundling when consumers differ in one dimension. We introduce a partial order on the set of bundles defined by (i) set inclusion and (ii) sales volumes (if sold alone and priced optimally). We show that if the undominated…
The growing popularity of Virtual Assistants poses new challenges for Entity Resolution, the task of linking mentions in text to their referent entities in a knowledge base. Specifically, in the shopping domain, customers tend to use…
Recommendation systems capable of providing diverse sets of results are a focus of increasing importance, with motivations ranging from fairness to novelty and other aspects of optimizing user experience. One form of diversity of recent…
We propose an enhancement to wholesale electricity markets whereby the exposure of consumers to increasingly large and volatile consumer payments arising as a byproduct of volatile real-time net loads -- i.e., loads minus renewable outputs…
We study the subtlety of optimal paternalism when a utilitarian planner has the power to design a discrete choice set for a heterogeneous population with bounded rationality. We first consider the planning problem in abstraction. We show…
Capacitated Domination generalizes the classic Dominating Set problem by specifying for each vertex a required demand and an available capacity for covering demand in its closed neighborhood. The objective is to find a minimum-sized set of…
The main objective of this paper is to outline a theoretical framework to analyse how humans' decision-making strategies under uncertainty manage the trade-off between information gathering (exploration) and reward seeking (exploitation). A…
We present a method for using standard techniques from satisfiability checking to automatically verify and discover theorems in an area of economic theory known as ranking sets of objects. The key question in this area, which has important…
We introduce a novel approach to solving the optimal portfolio choice problem under Epstein-Zin utility with a time-varying consumption constraint, where analytical expressions for the value function and the dual value function are not…
The subset sum algorithm is a natural heuristic for the classical Bin Packing problem: In each iteration, the algorithm finds among the unpacked items, a maximum size set of items that fits into a new bin. More than 35 years after its first…
This paper studies a {\it reversible} investment problem where a social planner aims to control its capacity production in order to fit optimally the random demand of a good. Our model allows for general diffusion dynamics on the demand as…
One way to define the Matching Cut problem is: Given a graph $G$, is there an edge-cut $M$ of $G$ such that $M$ is an independent set in the line graph of $G$? We propose the more general Conflict-Free Cut problem: Together with the graph…
We consider the dynamic assortment optimization problem under the multinomial logit model (MNL) with unknown utility parameters. The main question investigated in this paper is model mis-specification under the $\varepsilon$-contamination…
We present a formal model for studying fashion trends, in terms of three parameters of fashionable items: (1) their innate utility; (2) individual boredom associated with repeated usage of an item; and (3) social influences associated with…
Duality of linear programming is a standard approach to the classical weighted maximum matching problem. From an economic perspective, the dual variables can be regarded as prices of products and payoffs of buyers in a two-sided matching…
For both the edge deletion heuristic and the maximum-degree greedy heuristic, we study the problem of recognizing those graphs for which that heuristic can approximate the size of a minimum vertex cover within a constant factor of r, where…
Itemset mining is one of the most studied tasks in knowledge discovery. In this paper we analyze the computational complexity of three central itemset mining problems. We prove that mining confident rules with a given item in the head is…
A 2-packing set for an undirected graph $G=(V,E)$ is a subset $\mathcal{S} \subset V$ such that any two vertices $v_1,v_2 \in \mathcal{S}$ have no common neighbors. Finding a 2-packing set of maximum cardinality is a NP-hard problem. We…
We show that many bounded rationality patterns of choice can be alternatively represented as testable models of limited consideration, and we elicit the features of the associated unobserved consideration sets from the observed choice.…