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The paper studies one-shot two-player games with non-Bayesian uncertainty. The players have an attitude that ranges from optimism to pessimism in the face of uncertainty. Given the attitudes, each player forms a belief about the set of…

Computer Science and Game Theory · Computer Science 2015-03-13 Jiwoong Lee , Jean Walrand

Competition is a primary driver of player satisfaction and engagement in multiplayer online games. Traditional matchmaking systems aim at creating matches involving teams of similar aggregated individual skill levels, such as Elo score or…

Social and Information Networks · Computer Science 2020-06-25 Sofia M Nikolakaki , Ogheneovo Dibie , Ahmad Beirami , Nicholas Peterson , Navid Aghdaie , Kazi Zaman

We consider how an agent should update her uncertainty when it is represented by a set $\P$ of probability distributions and the agent observes that a random variable $X$ takes on value $x$, given that the agent makes decisions using the…

Artificial Intelligence · Computer Science 2007-11-27 Peter D. Grunwald , Joseph Y. Halpern

Inspired by applications in sports where the skill of players or teams competing against each other varies over time, we propose a probabilistic model of pairwise-comparison outcomes that can capture a wide range of time dynamics. We…

Machine Learning · Statistics 2019-05-20 Lucas Maystre , Victor Kristof , Matthias Grossglauser

Adversarial attacks have the potential to mislead deep neural network classifiers by introducing slight perturbations. Developing algorithms that can mitigate the effects of these attacks is crucial for ensuring the safe use of artificial…

Machine Learning · Computer Science 2023-10-31 Boya Zhang , Weijian Luo , Zhihua Zhang

We study the optimal allocation of prizes in rank-order tournaments with loss averse agents. Prize sharing becomes increasingly optimal with loss aversion because more equitable prizes reduce the marginal psychological cost of anticipated…

Theoretical Economics · Economics 2024-11-05 Dmitry Ryvkin , Qin Wu

In this work, we consider a computational model of a distributed system formed by a set of servers in which jobs, that are continuously arriving, have to be executed. Every job is formed by a set of dependent tasks (i.~e., each task may…

Networking and Internet Architecture · Computer Science 2019-10-07 Vicent Cholvi , Juan Echagüe , Antonio Fernández Anta , Christopher Thraves Caro

Adversarial training methods typically align distributions by solving two-player games. However, in most current formulations, even if the generator aligns perfectly with data, a sub-optimal discriminator can still drive the two apart.…

Machine Learning · Computer Science 2020-02-21 Shangyuan Tong , Timur Garipov , Tommi Jaakkola

We analyze systems of agents sharing light-tailed risky claims issued by different financial objects. Assuming exponentially distributed claims, we obtain that both agents' and system's losses follow generalized exponential mixture…

Risk Management · Quantitative Finance 2016-12-22 Claudia Klüppelberg , Miriam Isabel Seifert

Researchers have widely used accelerated life tests to determine an optimal inspection plan for lot acceptance. All such plans are proposed by assuming a known relationship between the lifetime characteristic(s) and the accelerating stress…

Computation · Statistics 2026-02-06 Sandip Barui , Shovan Chowdhury

In the aftermath of the financial crisis, supervisory authorities have considerably altered the mode of operation of financial stress testing. Despite these efforts, significant concerns and extensive criticism have been raised by market…

Computational Finance · Quantitative Finance 2022-09-14 Anastasios Petropoulos , Vassilis Siakoulis , Konstantinos P. Panousis , Loukas Papadoulas , Sotirios Chatzis

The established language for statistical testing --- significance levels, power, and p-values --- is overly complicated and deceptively conclusive. Even teachers of statistics and scientists who use statistics misinterpret the results of…

Statistics Theory · Mathematics 2019-10-23 Glenn Shafer

Adversarial training is a training scheme designed to counter adversarial attacks by augmenting the training dataset with adversarial examples. Surprisingly, several studies have observed that loss gradients from adversarially trained DNNs…

Machine Learning · Computer Science 2019-04-22 Beomsu Kim , Junghoon Seo , Taegyun Jeon

We construct a financial "Turing test" to determine whether human subjects can differentiate between actual vs. randomized financial returns. The experiment consists of an online video-game (http://arora.ccs.neu.edu) where players are…

General Finance · Quantitative Finance 2010-02-26 Jasmina Hasanhodzic , Andrew W. Lo , Emanuele Viola

Resource allocation in adversarial environments is a fundamental challenge across various domains, from corporate competition to military strategy. This article examines the impact of compromising an opponent's strategic intent in the…

Computer Science and Game Theory · Computer Science 2024-10-03 Gilberto Diaz-Garcia , Keith Paarporn , Jason R. Marden

In this work, inspired by the Archer-Mouy-Selmi approach, we present two methodologies for scoring the stress test scenarios used by CCPs for sizing their Default Funds. These methodologies can be used by risk managers to compare different…

Risk Management · Quantitative Finance 2020-07-07 Pierre Cohort , Jacopo Corbetta , Ismail Laachir

For a family of multidimensional gambler models we provide formulas for the winning probabilities (in terms of parameters of the system) and for the distribution of game duration (in terms of eigenvalues of underlying one-dimensional…

Probability · Mathematics 2018-12-04 Paweł Lorek , Piotr Markowski

Sports betting markets are proven real-world laboratories to test theories of asset pricing anomalies and risky behaviour. Using a high-frequency dataset provided directly by a major bookmaker, containing the odds and amounts staked…

General Economics · Economics 2022-11-14 Marius Ötting , Christian Deutscher , Carl Singleton , Luca De Angelis

When facing a heavily-favored opponent, an underdog must be willing to assume greater-than-average risk. In statistical language, one would say that an underdog must be willing to adopt a strategy whose outcome has a larger-than-average…

Physics and Society · Physics 2011-11-04 Brian Skinner

The beautiful theory of statistical gambling, started by Dubins and Savage (for subfair games) and continued by Kelly and Breiman (for superfair games) has mostly been studied under the unrealistic assumption that we live in a continuous…

Probability · Mathematics 2014-11-27 Shalosh B. Ekhad , Doron Zeilberger