Related papers: Naive Diversification Preferences and their Repres…
Deep neural networks exhibit a simplicity bias, a well-documented tendency to favor simple functions over complex ones. In this work, we cast new light on this phenomenon through the lens of the Minimum Description Length principle,…
The conventional wisdom of mean-variance (MV) portfolio theory asserts that the nature of the relationship between risk and diversification is a decreasing asymptotic function, with the asymptote approximating the level of portfolio…
Many decision-making problems feature multiple objectives. In such problems, it is not always possible to know the preferences of a decision-maker for different objectives. However, it is often possible to observe the behavior of…
We study interactions with uncertainty about demand sensitivity. In our solution concept (1) firms choose seemingly-optimal strategies given the level of sophistication of their data analytics, and (2) the levels of sophistication form best…
The transitivity of preferences is one of the basic assumptions used in the theory of games and decisions. It is often equated with rationality of choice and is considered useful in building rankings. Intransitive preferences are considered…
We consider the problem of Adverse Selection and optimal derivative design within a Principal-Agent framework. The principal's income is exposed to non-hedgeable risk factors arising, for instance, from weather or climate phenomena. She…
We investigate the fair allocation of indivisible goods to agents with possibly different entitlements represented by weights. Previous work has shown that guarantees for additive valuations with existing envy-based notions cannot be…
In this work we introduce a new model of decision-making by agents in a social network. Agents have innate preferences over the strategies but, because of the social interactions, the decision of the agents are not only affected by their…
We consider a one-sided assignment market or exchange network with transferable utility and propose a model for the dynamics of bargaining in such a market. Our dynamical model is local, involving iterative updates of 'offers' based on…
We study notions of fairness in decision-making systems when individuals have diverse preferences over the possible outcomes of the decisions. Our starting point is the seminal work of Dwork et al. which introduced a notion of individual…
Selective inference is a subfield of statistics that enables valid inference after selection of a data-dependent question. In this paper, we introduce selectively dominant p-values, a class of p-values that allow practitioners to easily…
We consider the optimal risk sharing problem with a continuum of agents, modeled via a non-atomic measure space. Individual preferences are not assumed to be convex. We show the multiplicity of agents induces the value function to be…
Recent studies on disparate impact in machine learning applications have sparked a debate around the concept of fairness along with attempts to formalize its different criteria. Many of these approaches focus on reducing prediction errors…
Efforts to apply economic complexity to identify diversification opportunities often rely on diagrams comparing the relatedness and complexity or products, technologies, or industries. Yer, the use of these diagrams is not based on…
When information acquisition is costly but flexible, a principal may rationally acquire information that favors one group over another. The former group faces incentives to invest in becoming productive, while the latter is discouraged from…
Semantic Heterogeneity is conventionally understood as the existence of variance in the representation of a target reality when modelled, by independent parties, in different databases, schemas and/ or data. We argue that the mere encoding…
Different agents need to make a prediction. They observe identical data, but have different models: they predict using different explanatory variables. We study which agent believes they have the best predictive ability -- as measured by…
We consider repeated allocation of a shared resource via a non-monetary mechanism, wherein a single item must be allocated to one of multiple agents in each round. We assume that each agent has i.i.d. values for the item across rounds, and…
Consider an agent taking two successive decisions to maximize his expected utility under uncertainty. After his first decision, a signal is revealed that provides information about the state of nature. The observation of the signal allows…
A dynamic model of collective consumption and saving decisions made by a finite number of agents with constant but different discount rates is developed. Collective utility is a weighted sum of individual utilities with time-varying utility…