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As a firm varies the price of a product, consumers exhibit reference effects, making purchase decisions based not only on the prevailing price but also the product's price history. We consider the problem of learning such behavioral…

Computer Science and Game Theory · Computer Science 2017-08-31 Abbas Kazerouni , Benjamin Van Roy

We consider a bandit recommendations problem in which an agent's preferences (representing selection probabilities over recommended items) evolve as a function of past selections, according to an unknown $\textit{preference model}$. In each…

Machine Learning · Computer Science 2024-02-07 Arpit Agarwal , William Brown

Evaluating the financial performance of manufacturing firms requires consideration of both the time value of money and the relative importance of multiple decision criteria. Conventional approaches relying solely on deterministic…

Theoretical Economics · Economics 2026-02-05 Duaa Abdullah , Marwa Abdullah

We develop a general model for finding the optimal penal strategy based on the behavioral traits of the offenders. We focus on how the discount rate (level of time discounting) affects criminal propensity on the individual level, and how…

General Economics · Economics 2020-11-02 Yuqing Wang , Yan Ru Pei

Reinforcement learning (RL) agents have traditionally been tasked with maximizing the value function of a Markov decision process (MDP), either in continuous settings, with fixed discount factor $\gamma < 1$, or in episodic settings, with…

Machine Learning · Computer Science 2019-02-11 Silviu Pitis

This paper examines how outcome modality in intertemporal choice influences time preferences and whether the process differs across cultures, specifically Japan and the United States. Uni-modal choices are those when the outcomes being…

General Economics · Economics 2025-12-01 Shohei Yamamoto , Rebecca McDonald , Daniel Read

Depression has been associated with impaired neural processing of reward and punishment. However, to date, little is known regarding the relationship between depression and intertemporal choice for gain and loss. We compared impulsivity and…

We propose a general methodology for recovering preference parameters from data on choices and response times. Our methods yield estimates with fast ($1/n$ for $n$ data points) convergence rates when specialized to the popular Drift…

Theoretical Economics · Economics 2025-08-04 Federico Echenique , Alireza Fallah , Michael I. Jordan

The HCI community commonly evaluates decision support systems based on whether they improve task performance or promote appropriate user reliance. In this work, we look beyond decision outcomes to examine the process through which users…

Human-Computer Interaction · Computer Science 2026-03-18 Michaela Benk , Tim Miller

An important use of machine learning is to learn what people value. What posts or photos should a user be shown? Which jobs or activities would a person find rewarding? In each case, observations of people's past choices can inform our…

Artificial Intelligence · Computer Science 2015-12-21 Owain Evans , Andreas Stuhlmueller , Noah D. Goodman

When designing algorithms for finite-time-horizon episodic reinforcement learning problems, a common approach is to introduce a fictitious discount factor and use stationary policies for approximations. Empirically, it has been shown that…

Machine Learning · Computer Science 2021-09-15 Xin Guo , Anran Hu , Junzi Zhang

The analysis of Temporal Difference (TD) learning in the average-reward setting faces notable theoretical difficulties because the Bellman operator is not contractive with respect to any norm. This complicates standard analyses of…

Machine Learning · Computer Science 2026-05-05 Haoxing Tian , Zaiwei Chen , Ioannis Ch. Paschalidis , Alex Olshevsky

Recent literature on policy learning has primarily focused on regret bounds of the learned policy. We provide a new perspective by developing a unified semiparametric efficiency framework for policy learning, allowing for general treatments…

Econometrics · Economics 2026-02-10 Yue Fang , Geert Ridder , Haitian Xie

We consider black-box global optimization of time-consuming-to-evaluate functions on behalf of a decision-maker (DM) whose preferences must be learned. Each feasible design is associated with a time-consuming-to-evaluate vector of…

Machine Learning · Statistics 2020-03-05 Raul Astudillo , Peter I. Frazier

The desirable gambles framework provides a foundational approach to imprecise probability theory but relies heavily on linear utility assumptions. This paper introduces function-coherent gambles, a generalization that accommodates…

Theoretical Economics · Economics 2025-04-28 Gregory Wheeler

We begin by formulating and characterizing a dominance criterion for prize sequences: $x$ dominates $y$ if any impatient agent prefers $x$ to $y$. With this in hand, we define a notion of comparative patience. Alice is more patient than Bob…

Theoretical Economics · Economics 2024-07-03 Mark Whitmeyer

Processes (MDPs) often require frequent decision making, that is, taking an action every microsecond, second, or minute. Infinite horizon discount reward formulation is still relevant for a large portion of these applications, because…

Optimization and Control · Mathematics 2014-12-17 Yin-Lam Chow , Junjie Qin

This paper investigates a novel behavioral feature of recursive preferences: aversion to risks that persist over time, or simply \textit{correlation aversion}. Greater persistence provides information about future consumption but reduces…

Theoretical Economics · Economics 2026-03-24 Lorenzo Maria Stanca

This paper provides new conditions for dynamic optimality in discrete time and uses them to establish fundamental dynamic programming results for several commonly used recursive preference specifications. These include Epstein-Zin…

General Economics · Economics 2020-06-23 Guanlong Ren , John Stachurski

A classical problem in ergodic continuous time control consists of studying the limit behavior of the optimal value of a discounted cost functional with infinite horizon as the discount factor $\lambda$ tends to zero. In the literature,…

Optimization and Control · Mathematics 2024-01-23 Piermarco Cannarsa , Stephane Gaubert , Cristian Mendico , Marc Quincampoix