Related papers: Rational Choice Hypothesis as X-point of Utility F…
We pursue an inverse approach to utility theory and consumption & investment problems. Instead of specifying an agent's utility function and deriving her actions, we assume we observe her actions (i.e. her consumption and investment…
Most studies of prosumer decision making in the smart grid have focused on single, temporally discrete decisions within the framework of expected utility theory (EUT) and behavioral theories such as prospect theory. In this work, we study…
Standard macroeconomic models assume that households are rational in the sense that they are perfect utility maximizers, and explain economic dynamics in terms of shocks that drive the economy away from the stead-state. Here we build on a…
The relationship of policy choice by majority voting and by maximization of utilitarian welfare has long been discussed. I consider choice between a status quo and a proposed policy when persons have interpersonally comparable cardinal…
Cooperation is central to the success of human societies as it is crucial for overcoming some of the most pressing social challenges of our time. Yet how human cooperation is achieved and may persist is still a main puzzle in the social and…
This work considers a Bayesian signal processing problem where increasing the power of the probing signal may cause risks or undesired consequences. We employ a market based approach to solve energy management problems for signal detection…
Human behavioural patterns exhibit selfish or competitive, as well as selfless or altruistic tendencies, both of which have demonstrable effects on human social and economic activity. In behavioural economics, such effects have…
This study deploys methods in explainable artificial intelligence (XAI), e.g. decision trees and Pearson's correlation coefficient (PCC), to investigate electricity usage in multiple locales. It addresses the vital issue of energy burden,…
The sum-utility maximization problem is known to be important in the energy systems literature. The conventional assumption to address this problem is that the utility is concave. But for some key applications, such an assumption is not…
We developed a coupled social-climate network model to understand the interaction between climate change opinion spread and the climate system and determine the role of this interaction in shaping collective actions and global temperature…
Despite the prevalence of voting systems in the real world there is no consensus among researchers of how people vote strategically, even in simple voting settings. This paper addresses this gap by comparing different approaches that have…
The von Neumann and Morgenstern theory postulates that rational choice under uncertainty is equivalent to maximization of expected utility (EU). This view is mathematically appealing and natural because of the affine structure of the space…
The problem of quantification of emotions in the choice between alternatives is considered. The alternatives are evaluated in a dual manner. From one side, they are characterized by rational features defining the utility of each…
Choice models for large-scale applications have historically relied on economic theories (e.g. utility maximisation) that establish relationships between the choices of individuals, their characteristics, and the attributes of the…
When making decisions under risk, people often exhibit behaviors that classical economic theories cannot explain. Newer models that attempt to account for these irrational behaviors often lack neuroscience bases and require the introduction…
Recent work in the behavioural sciences has begun to overturn the long-held belief that human decision making is irrational, suboptimal and subject to biases. This turn to the rational suggests that human decision making may be a better…
Collective behaviours are frequently observed to self-organise to criticality. Existing proposals to explain these phenomena are fragmented across disciplines and only partially answer the question. This primer compares the underlying,…
Many real-world situations of ethical and economic relevance, such as collective (in)action with respect to the climate crisis, involve not only diverse agents whose decisions interact in complicated ways, but also various forms of…
How cooperation evolves and particularly maintains at a large scale remains an open problem for improving humanity across domains ranging from climate change to pandemic response. To shed light on how behavioral norms can resolve the social…
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…