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Rewards typically express desirabilities or preferences over a set of alternatives. Here we propose that rewards can be defined for any probability distribution based on three desiderata, namely that rewards should be real-valued, additive…

Artificial Intelligence · Computer Science 2009-12-31 Pedro A. Ortega , Daniel A. Braun

Many intelligent user interfaces employ application and user models to determine the user's preferences, goals and likely future actions. Such models require application analysis, adaptation and expansion. Building and maintaining such…

Artificial Intelligence · Computer Science 2013-01-18 Peter J. Gorniak , David L. Poole

We demonstrate a limitation of discounted expected utility, a standard approach for representing the preference to risk when future cost is discounted. Specifically, we provide an example of the preference of a decision maker that appears…

Computer Science and Game Theory · Computer Science 2012-02-20 Takayuki Osogami

User preferences for automated assistance often vary widely, depending on the situation, and quality or presentation of help. Developing effectivemodels to learn individual preferences online requires domain models that associate…

Artificial Intelligence · Computer Science 2012-06-18 Bowen Hui , Craig Boutilier

The paper provides consistent mathematical framework for seminal Tiebout free-mobility model (1956). Our setting supports continuum of consumers with multidimensional preferences and finite number of strategic public good providers. We…

Optimization and Control · Mathematics 2018-05-31 Alexey Savvateev , Constantine Sorokin , Shlomo Weber

We study consumption dependence in the context of random utility and repeated choice. We show that, in the presence of consumption dependence, the random utility model is a misspecified model of repeated rational choice. This…

Theoretical Economics · Economics 2025-10-01 Christopher Turansick

We study group decision making with changing preferences as a Markov Decision Process. We are motivated by the increasing prevalence of automated decision-making systems when making choices for groups of people over time. Our main…

Multiagent Systems · Computer Science 2020-11-06 Kshitij Kulkarni , Sven Neth

Preferences play a key role in determining what goals/constraints to satisfy when not all constraints can be satisfied simultaneously. In this work, we study preference-based planning in a stochastic system modeled as a Markov decision…

Formal Languages and Automata Theory · Computer Science 2022-03-28 Abhishek Ninad Kulkarni , Jie Fu

In this paper, we consider the classic stochastic (dynamic) knapsack problem, a fundamental mathematical model in revenue management, with general time-varying random demand. Our main goal is to study the optimal policies, which can be…

Optimization and Control · Mathematics 2018-07-19 Yingdong Lu

In the theory of social choice the research is focused around the projection of individual preference orders to the social preference order. Also, the justification of the preference order formalism begins with the concept of utility i.e.…

Computer Science and Game Theory · Computer Science 2010-10-27 Redjan F. Shabani

Preferences often change -- even in short time intervals -- due to either the mere passage of time (present-biased preferences) or changes in environmental conditions (state-dependent preferences). On the basis of the empirical findings in…

General Economics · Economics 2021-02-01 Sebastian Krügel , Matthias Uhl

In this paper, a mixed integer linear formulation for problems considering time-of-use-type constraints for uninterruptible services is presented. Our work is motivated by demand response problems in power systems, in which certain devices…

Optimization and Control · Mathematics 2020-10-16 Ana Batista , David Pozo , Jorge Vera

We propose and solve a stochastic dynamic programming (DP) problem addressing the optimal provision of regulation service reserves (RSR) by controlling dynamic demand preferences in smart buildings. A major contribution over past dynamic…

Systems and Control · Computer Science 2017-07-26 Bowen Zhang , Michael C. Caramanis , John Baillieul

The ability to uncover preferences from choices is fundamental for both positive economics and welfare analysis. Overwhelming evidence shows that choice is stochastic, which has given rise to random utility models as the dominant paradigm…

General Economics · Economics 2018-11-07 Carlos Alos-Ferrer , Ernst Fehr , Nick Netzer

We extend well-known comparative results under expected utility to models of non-expected utility by providing novel conditions on local utility functions. We illustrate how our results parallel, and are distinct from, existing results for…

Theoretical Economics · Economics 2026-01-16 Collin Raymond , Yangwei Song

In a continuous time stochastic economy, this paper considers the problem of consumption and investment in a financial market in which the representative investor exhibits a change in the discount rate. The investment opportunities are a…

Optimization and Control · Mathematics 2011-07-12 Traian A. Pirvu , Huayue Zhang

Empirical research often cites observed choice responses to variation that shifts expected discounted future utilities, but not current utilities, as an intuitive source of information on time preferences. We study the identification of…

Econometrics · Economics 2020-05-28 Jaap H. Abbring , Øystein Daljord

I study dynamic random utility with finite choice sets and exogenous total menu variation, which I refer to as stochastic utility (SU). First, I characterize SU when each choice set has three elements. Next, I prove several mathematical…

Theoretical Economics · Economics 2022-06-22 Ricky Li

This research considers the ranking and selection with input uncertainty. The objective is to maximize the posterior probability of correctly selecting the best alternative under a fixed simulation budget, where each alternative is measured…

Optimization and Control · Mathematics 2023-05-15 Hui Xiao , Zhihong Wei

The main goal of this paper is to describe an axiomatic utility theory for Dempster-Shafer belief function lotteries. The axiomatic framework used is analogous to von Neumann-Morgenstern's utility theory for probabilistic lotteries as…

Artificial Intelligence · Computer Science 2020-07-16 Thierry Denoeux , Prakash P. Shenoy