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We consider a control problem for a heterogeneous population composed of agents able to switch at any time between different options. The controller aims to maximize an average gain per time unit, supposing that the population is of…

Optimization and Control · Mathematics 2024-04-05 Quentin Jacquet , Wim van Ackooij , Clémence Alasseur , Stéphane Gaubert

Algorithms and dynamics over networks often involve randomization, and randomization may result in oscillating dynamics which fail to converge in a deterministic sense. In this paper, we observe this undesired feature in three applications,…

Systems and Control · Computer Science 2013-12-17 Chiara Ravazzi , Paolo Frasca , Roberto Tempo , Hideaki Ishii

Most people are risk-averse (risk-seeking) when they expect to gain (lose). Based on a generalization of ``expected utility theory'' which takes this into account, we introduce an automaton mimicking the dynamics of economic operations.…

Statistical Mechanics · Physics 2009-11-07 C. Anteneodo , C. Tsallis , A. S. Martinez

Ergodic optimization is the study of problems relating to maximizing orbits, maximizing invariant measures and maximum ergodic averages. An orbit of a dynamical system is called f-maximizing if the time average of the real-valued function f…

Dynamical Systems · Mathematics 2019-09-11 Oliver Jenkinson

We are witnessing an increasing use of data-driven predictive models to inform decisions. As decisions have implications for individuals and society, there is increasing pressure on decision makers to be transparent about their decision…

Given pseudo-random binary sequence of length $L$, assuming it consists of $k$ sub-sequences of length $N$. We estimate how $k$ scales with growing $N$ to obtain a {\it limiting} ergodic behaviour, to fulfill the basic definition of…

Statistical Mechanics · Physics 2009-04-22 M. Süzen

One challenge in the estimation of financial market agent-based models (FABMs) is to infer reliable insights using numerical simulations validated by only a single observed time series. Ergodicity (besides stationarity) is a strong…

Econometrics · Economics 2022-08-18 Ivonne Schwartz , Mark Kirstein

We study the optimization of ergodic averages for multi-valued dynamical systems, i.e. where points may have multiple different forward orbits. Under upper semi-continuity assumptions, we show that the maximum space average with respect to…

Dynamical Systems · Mathematics 2025-06-03 Oliver Jenkinson , Xiaoran Li , Yuexin Liao , Yiwei Zhang

Sequences of repeated gambles provide an experimental tool to characterize the risk preferences of humans or artificial decision-making agents. The difficulty of this inference depends on factors including the details of the gambles offered…

Artificial Intelligence · Computer Science 2023-08-15 James Price , Colm Connaughton

Sharpe et al. proposed the idea of having an expected utility maximizer choose a probability distribution for future wealth as an input to her investment problem instead of a utility function. They developed a computer program, called The…

Portfolio Management · Quantitative Finance 2013-01-08 Phillip Monin

Recently, ergodic control has been suggested as a means to guide mobile sensors for information gathering tasks. In ergodic control, a mobile sensor follows a trajectory that is ergodic with respect to some information density distribution.…

Systems and Control · Computer Science 2018-08-22 Louis Dressel , Mykel J. Kochenderfer

Different models to study the wealth distribution in an artificial society have considered a transactional dynamics as the driving force. Those models include a risk aversion factor, but also a finite probability of favoring the poorer…

Physics and Society · Physics 2009-11-11 M. A. Fuentes , M. N. Kuperman , J. R. Iglesias

Understanding the affective, cognitive and behavioural processes involved in risk taking is essential for treatment and for setting environmental conditions to limit damage. Using Temporal Difference Reinforcement Learning (TDRL) we…

Machine Learning · Computer Science 2015-02-04 Joost Broekens , Tim Baarslag

In this paper we study the dynamics and ergodic theory of certain economic models which are implicitly defined. We consider 1-dimensional and 2-dimensional overlapping generations models, a cash-in-advance model, heterogeneous markets and a…

Dynamical Systems · Mathematics 2011-11-16 Eugen Mihailescu

Rationality is frequently associated with making the best possible decisions. It's widely acknowledged that humans, as rational beings, have limitations in their decision-making capabilities. Nevertheless, recent advancements in fields,…

Computers and Society · Computer Science 2023-11-03 Dibakar Das

The stochastic processes underlying the growth and stability of biological and psychological systems reveal themselves when far from equilibrium. Far from equilibrium, nonergodicity reigns. Nonergodicity implies that the average outcome for…

Methodology · Statistics 2022-02-03 Madhur Mangalam , Damian G. Kelty-Stephen

The long-term impact of algorithmic decision making is shaped by the dynamics between the deployed decision rule and individuals' response. Focusing on settings where each individual desires a positive classification---including many…

Computer Science and Game Theory · Computer Science 2019-10-10 Lydia T. Liu , Ashia Wilson , Nika Haghtalab , Adam Tauman Kalai , Christian Borgs , Jennifer Chayes

Decision-making individuals often imitate their highest-earning fellows rather than optimize their own utilities, due to bounded rationality and incomplete information. Perpetual fluctuations between decisions have been reported as the…

Systems and Control · Electrical Eng. & Systems 2023-02-16 Yiheng Fu , Pouria Ramazi

This paper examines the problem of adaptive influence maximization in social networks. As adaptive decision making is a time-critical task, a realistic feedback model has been considered, called myopic. In this direction, we propose the…

Social and Information Networks · Computer Science 2018-07-09 Guillaume Salha , Nikolaos Tziortziotis , Michalis Vazirgiannis

Under mean-variance-utility framework, we propose a new portfolio selection model, which allows wealth and time both have influences on risk aversion in the process of investment. We solved the model under a game theoretic framework and…

Portfolio Management · Quantitative Finance 2020-08-11 Ben-Zhang Yang , Xin-Jiang He , Song-Ping Zhu