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A reinforcement learning agent tries to maximize its cumulative payoff by interacting in an unknown environment. It is important for the agent to explore suboptimal actions as well as to pick actions with highest known rewards. Yet, in…

Machine Learning · Computer Science 2019-01-23 Reazul Hasan Russel

In robust optimization one seeks to make a decision under uncertainty, where the goal is to find the solution with the best worst-case performance. The set of possible realizations of the uncertain data is described by a so-called…

Optimization and Control · Mathematics 2022-01-25 Immanuel Bomze , Markus Gabl

We consider a simple sequential allocation procedure for sharing indivisible items between agents in which agents take turns to pick items. Supposing additive utilities and independence between the agents, we show that the expected utility…

Artificial Intelligence · Computer Science 2013-04-24 Thomas Kalinowski , Nina Nardoytska , Toby Walsh

This paper studies a one-sector optimal growth model with i.i.d. productivity shocks that are allowed to be unbounded. The utility function is assumed to be non-negative and unbounded from above. The novel feature in our framework is that…

Economics · Quantitative Finance 2021-07-21 Nicole Bäuerle , Anna Jaśkiewicz

We investigate the probabilistic feasibility of randomized solutions to two distinct classes of uncertain multi-agent optimization programs. We first assume that only the constraints of the program are affected by uncertainty, while the…

Optimization and Control · Mathematics 2020-09-29 George Pantazis , Filiberto Fele , Kostas Margellos

The strategic selection of resources by selfish agents has long been a key area of research, with Resource Selection Games and Congestion Games serving as prominent examples. In these traditional frameworks, agents choose from a set of…

Computer Science and Game Theory · Computer Science 2025-05-13 Henri Zeiler

We consider a setting where one has to organize one or several group activities for a set of agents. Each agent will participate in at most one activity, and her preferences over activities depend on the number of participants in the…

Computer Science and Game Theory · Computer Science 2014-02-03 Andreas Darmann , Edith Elkind , Sascha Kurz , Jérôme Lang , Joachim Schauer , Gerhard Woeginger

We study the subtlety of optimal paternalism when a utilitarian planner has the power to design a discrete choice set for a heterogeneous population with bounded rationality. We first consider the planning problem in abstraction. We show…

Econometrics · Economics 2026-01-23 Charles F. Manski , Eytan Sheshinski

We consider the problem of an agent who faces losses in continuous time over a finite time horizon and may choose to share some of these losses with a counterparty. The agent is uncertain about the true loss distribution and has multiple…

Risk Management · Quantitative Finance 2026-01-13 Emma Kroell , Sebastian Jaimungal , Silvana M. Pesenti

We present a reinforcement learning (RL) approach for robust optimisation of risk-aware performance criteria. To allow agents to express a wide variety of risk-reward profiles, we assess the value of a policy using rank dependent expected…

Machine Learning · Computer Science 2021-12-16 Sebastian Jaimungal , Silvana Pesenti , Ye Sheng Wang , Hariom Tatsat

While many multiagent algorithms are designed for homogeneous systems (i.e. all agents are identical), there are important applications which require an agent to coordinate its actions without knowing a priori how the other agents behave.…

Artificial Intelligence · Computer Science 2019-07-17 Stefano V. Albrecht , Subramanian Ramamoorthy

We consider a two-sided matching problem in which the agents on one side have dichotomous preferences and the other side representing institutions has strict preferences (priorities). It captures several important applications in matching…

Computer Science and Game Theory · Computer Science 2025-02-17 Haris Aziz , Md. Shahidul Islam , Szilvia Pápai

The strategic selection of resources by selfish agents is a classic research direction, with Resource Selection Games and Congestion Games as prominent examples. In these games, agents select available resources and their utility then…

Computer Science and Game Theory · Computer Science 2024-06-14 Jonathan Gadea Harder , Simon Krogmann , Pascal Lenzner , Alexander Skopalik

Most decision theories, including expected utility theory, rank dependent utility theory and cumulative prospect theory, assume that investors are only interested in the distribution of returns and not in the states of the economy in which…

Portfolio Management · Quantitative Finance 2014-07-03 Carole Bernard , Franck Moraux , Ludger Rueschendorf , Steven Vanduffel

Motivated by the recent popularity of machine learning training services, we introduce a contract design problem in which a provider sells a service that results in an outcome of uncertain quality for the buyer. The seller has a set of…

Computer Science and Game Theory · Computer Science 2026-05-06 Krishnamurthy Iyer , Alec Sun , Haifeng Xu , You Zu

We study the market selection hypothesis in complete financial markets, populated by heterogeneous agents. We allow for a rich structure of heterogeneity: individuals may differ in their beliefs concerning the economy, information and…

Portfolio Management · Quantitative Finance 2012-01-17 Roman Muraviev

We initiate a novel direction in randomized social choice by proposing a new definition of agent utility for randomized outcomes. Each agent has a preference over all outcomes and a {\em quantile} parameter. Given a {\em lottery} over the…

Computer Science and Game Theory · Computer Science 2026-03-03 Ioannis Caragiannis , Fabian Frank , Sanjukta Roy

We consider the problem of Adverse Selection and optimal derivative design within a Principal-Agent framework. The principal's income is exposed to non-hedgeable risk factors arising, for instance, from weather or climate phenomena. She…

Computational Engineering, Finance, and Science · Computer Science 2007-10-31 U. Horst , S. Moreno

When an Agent visits a platform recommending a menu of content to select from, their choice of item depends not only on fixed preferences, but also on their prior engagements with the platform. The Recommender's primary objective is…

Information Retrieval · Computer Science 2022-10-26 Arpit Agarwal , William Brown

We consider a monopoly insurance market with a risk-neutral profit-maximizing insurer and a consumer with Yaari Dual Utility preferences that distort the given continuous loss distribution. The insurer observes the loss distribution but not…

Theoretical Economics · Economics 2025-04-03 Mario Ghossoub , Bin Li , Benxuan Shi