Related papers: Dynamically Consistent Objective and Subjective Ra…
We implement nonparametric revealed-preference tests of subjective expected utility theory and its generalizations. We find that a majority of subjects' choices are consistent with the maximization of some utility function. They respond to…
Monotonicity and recursivity are central assumptions in intertemporal consumption problems under ambiguity. We show that monotone recursive preferences admit both a recursive and an ex-ante representation, and that the certainty equivalent…
Agents vote to choose a fair mixture of public outcomes; each agent likes or dislikes each outcome. We discuss three outstanding voting rules. The Conditional Utilitarian rule, a variant of the random dictator, is Strategyproof and…
The ideas about decision making under ignorance in economics are combined with the ideas about uncertainty representation in computer science. The combination sheds new light on the question of how artificial agents can act in a dynamically…
Completeness and transitivity are standard rationality conditions in economics. However, under ambiguity, decision makers sometimes violate these requirements because of the difficulty of forming accurate predictions about ambiguous events.…
A key question concerning collective decisions is whether a social system can settle on the best available option when some members learn from others instead of evaluating the options on their own. This question is challenging to study, and…
We study binary opinion dynamics in a fully connected network of interacting agents. The agents are assumed to interact according to one of the following rules: (1) Voter rule: An updating agent simply copies the opinion of another randomly…
A dynamical model is introduced for the formation of a bullish or bearish trends driving an asset price in a given market. Initially, each agent decides to buy or sell according to its personal opinion, which results from the combination of…
At the beginning of a dynamic game, players may have exogenous theories about how the opponents are going to play. Suppose that these theories are commonly known. Then, players will refine their first-order beliefs, and challenge their own…
We model the joint distribution of choice probabilities and decision times in binary choice tasks as the solution to a problem of optimal sequential sampling, where the agent is uncertain of the utility of each action and pays a constant…
Mutually exclusive decisions have been studied for decades. Many well-known decision theories have been defined to help people either to make rational decisions or to interpret people's behaviors, such as expected utility theory, regret…
A perfectly rational decision-maker chooses the best action with the highest utility gain from a set of possible actions. The optimality principles that describe such decision processes do not take into account the computational costs of…
For a sequence of dynamic optimization problems, we aim at discussing a notion of consistency over time. This notion can be informally introduced as follows. At the very first time step $t_0$, the decision maker formulates an optimization…
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,…
Modeling the purposeful behavior of imperfect agents from a small number of observations is a challenging task. When restricted to the single-agent decision-theoretic setting, inverse optimal control techniques assume that observed behavior…
Subjective expected utility theory assumes that decision-makers possess unlimited computational resources to reason about their choices; however, virtually all decisions in everyday life are made under resource constraints - i.e.…
We propose a simple model to explore an educational phenomenon where the correct answer emerges from group discussion. We construct our model based on several plausible assumptions: (i) We tend to follow peers' opinions. However, if a…
We investigate opinion dynamics in multi-agent networks when a bias toward one of two possible opinions exists; for example, reflecting a status quo vs a superior alternative. Starting with all agents sharing an initial opinion representing…
We propose a framework for probability aggregation based on propositional probability logic. Unlike conventional judgment aggregation, which focuses on static rationality, our model addresses dynamic rationality by ensuring that collective…
Voting is the aggregation of individual preferences in order to select a winning alternative. Selection of a winner is accomplished via a voting rule, e.g., rank-order voting, majority rule, plurality rule, approval voting. Which voting…