Related papers: Correlation Concern
Decision making in modern stochastic systems, including e-commerce platforms, financial markets and healthcare systems, has evolved into a multifaceted process that combines information acquisition and adaptive information sources. This…
One way to make decisions under uncertainty is to select an optimal option from a possible range of options, by maximizing the expected utilities derived from a probability model. However, under severe uncertainty, identifying precise…
We consider decision-making under incomplete information about an unknown state of nature. We show that a decision problem yields a higher value of information than another, uniformly across information structures, if and only if it is…
The uncertainty quantification and risk modeling are hot topics in the operation and planning of energy systems. The system operators and planners are decision-makers that need to handle the uncertainty of input data of their models. As an…
Estimating the difficulty of multiple-choice questions would be great help for educators who must spend substantial time creating and piloting stimuli for their tests, and for learners who want to practice. Supervised approaches to…
We develop a decision-theoretic model of human-AI interaction to study when AI assistance improves or impairs human decision-making. A human decision-maker observes private information and receives a recommendation from an AI system, but…
We propose and axiomatize preferences on a product state space in light of uncertainty regarding the dependency of different payoff-relevant factors. Dependence structures allow to decompose probabilities and allow to pin down behavior…
The correlations that can be observed between a set of variables depend on the causal structure underpinning them. Causal structures can be modeled using directed acyclic graphs, where nodes represent variables and edges denote functional…
One of the most direct human mechanisms of promoting cooperation is rewarding it. We study the effect of sharing a reward among cooperators in the most stringent form of social dilemma, namely the Prisoner's Dilemma. Specifically, for a…
A decisionmaker faces $n$ alternatives, each of which represents a potential reward. After investing costly resources into investigating the alternatives, the decisionmaker may select one, or more generally a feasible subset, and obtain the…
A generalized model of games is proposed, in which cooperative games and non-cooperative games are special cases. Some games that are neither cooperative nor non-cooperative can be expressed and analyzed. The model is based on relationships…
The problem of Voodoo correlations is recognized in neuroimaging as the problem of estimating quantities of interest from the same data that was used to select them as interesting. In statistical terminology, the problem of inference…
Machine learning technology has become ubiquitous, but, unfortunately, often exhibits bias. As a consequence, disparate stakeholders need to interact with and make informed decisions about using machine learning models in everyday systems.…
End-users' trust in automated agents is important as automated decision-making and planning is increasingly used in many aspects of people's lives. In real-world applications of planning, multiple optimization objectives are often involved.…
The standard iterated prisoner's dilemma is an unrealistic model of social behaviour because it forces individuals to participate in the interaction. We analyse a model in which players have the option of ending their association. If the…
Pearson's correlation is an important summary measure of the amount of dependence between two variables. It is natural to want to generalise the concept of correlation as a single number that measures the inter-relatedness of three or more…
In a dynamic matching market, such as a marriage or job market, how should agents balance accepting a proposed match with the cost of continuing their search? We consider this problem in a discrete setting, in which agents have cardinal…
In this paper, we explain the reasons behind constraint interaction, which is the phenomenon that the results of testing equality constraints may depend heavily on the scaling method used. We find that the scaling methods interfere with the…
Using random matrix technique we determine an exact relation between the eigenvalue spectrum of the covariance matrix and of its estimator. This relation can be used in practice to compute eigenvalue invariants of the covariance…
We discuss several aspects of creation of adequate mathematical models in other sciences. In particular, many difficulties stem from great complexity of the source systems and the presence of a variety of uncertain factors. We illustrate…