Related papers: Rational hyperbolic discounting
Many policy counterfactuals depend on how consumers value product attributes such as sugar, sodium, caffeine, alcohol, or emissions. Standard hedonic and differentiated-products models interpret these valuations statically. That…
In this paper, we study the dividend strategies for a shareholder with non-constant discount rate in a diffusion risk model. We assume that the dividends can only be paid at a bounded rate and restrict ourselves to the Markov strategies.…
According to conventional wisdom, ambiguity accelerates optimal timing by decreasing the value of waiting in comparison with the unambiguous benchmark case. We study this mechanism in a multidimensional setting and show that in a…
There is a wealth of results in the literature on the thermodynamic formalism for potentials that are, in some sense, "hyperbolic". We show that for a sufficiently regular one-dimensional map satisfying a weak hyperbolicity assumption,…
We consider an agent with a rationally inattentive preference over menus of acts, as in de Oliveira et al (2017). We show that two axioms, Independence of Irrelevant Alternatives and Ignorance Equivalence, are necessary and sufficient for…
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…
Quantum batteries can be charged by performing a work ``instantaneously'' in the limit of a large number of cells, achieving a so-called quantum advantage. In general, the work exhibits statistics that can be represented by a…
In financial applications, latency advantages -- the ability to make decisions later than others, even without the ability to see what others have done -- can provide individual participants with an edge by allowing them to gather…
This paper is dedicated to the analysis of infinite horizon optimal control problems subject to semilinear parabolic equations with constraints on the controls and discounted cost functionals. The discount factors on the cost and the state…
We show the convergence of the zero relaxation limit in systems of $2 \times 2$ hyperbolic conservation laws with stochastic initial data. Precisely, solutions converge to a solution of the local equilibrium approximation as the relaxation…
Adequacy for estimation between an inferential method and a model can be de{\ldots}ned through two main requirements: {\ldots}rstly the inferential tool should de{\ldots}ne a well posed problem when applied to the model; secondly the…
The optimal time for the controllability of linear hyperbolic systems in one dimensional space with one-side controls has been obtained recently for time-independent coefficients in our previous works. In this paper, we consider linear…
Good economic mechanisms depend on the preferences of participants in the mechanism. For example, the revenue-optimal auction for selling an item is parameterized by a reserve price, and the appropriate reserve price depends on how much the…
The effects of saving and spending patterns on holding time distribution of money are investigated based on the ideal gas-like models. We show the steady-state distribution obeys an exponential law when the saving factor is set uniformly,…
In this communication, some economic models given by functional mappings are addressed. These are models for random markets where agents trade by pairs and exchange their money in a random and conservative way. They display the exponential…
The exponential upper bounds for the convergence rate of the distribution of restorable element with partially energized standby redundancy are founded, in the case when all working and repair times are bounded by exponential random…
This paper aims to reconstruct the initial condition of a hyperbolic equation with an unknown damping coefficient. Our approach involves approximating the hyperbolic equation's solution by its truncated Fourier expansion in the time domain…
Maximum entropy reinforcement learning motivates agents to explore states and actions to maximize the entropy of some distribution, typically by providing additional intrinsic rewards proportional to that entropy function. In this paper, we…
We study the problem of allocating a set of indivisible items among agents whose preferences include externalities. Unlike the standard fair division model, agents may derive positive or negative utility not only from items allocated…
The paper presents sufficient conditions of predictability for continuous time processes in deterministic setting. We found that processes with exponential decay on energy for higher frequencies are predictable in some weak sense on some…