Related papers: Preferences Relations and Consumer Theory
The purpose of this study is to explore whether the relationship between bias and nudges can be mathematically expressed in terms of quantum information theory, particularly by means of individually customized nudges. Based on the value…
This chapter surveys the application of matching theory to school choice, motivated by the shift from neighborhood assignment systems to choice-based models. Since educational choice is not mediated by price, the design of allocation…
The problem of advancing coordinatization of mathematics is considered. The need to develop a theory for measuring value and complexity of mathematical implications and proofs is discussed including motivations, benefits and implementation…
Many online shops offer functionality that help their customers navigate the available alternatives. For instance, options to filter and to sort goods are wide-spread. In this paper we show that sorting and filtering can be used by rational…
Choice functions constitute a simple, direct and very general mathematical framework for modelling choice under uncertainty. In particular, they are able to represent the set-valued choices that appear in imprecise-probabilistic decision…
Economic engineering is a new field wherein economic systems are modelled in the same manner as traditional mechanical and electrical engineering systems. In this paper, we use Newton's theory of motion as the basis for the theory of…
The preference graph is a combinatorial representation of the structure of a normal-form game. Its nodes are the strategy profiles, with an arc between profiles if they differ in the strategy of a single player, where the orientation…
Understanding consumer preferences is essential to product design and predicting market response to these new products. Choice-based conjoint analysis is widely used to model user preferences using their choices in surveys. However,…
The report suggests the concept of risk, outlining two mathematical structures necessary for risk genesis: the set of outcomes and, in a general case, partial order of preference on it. It is shown that this minimum partial order should…
We formalize the general principle of significance with respect to binary relations which is a universal tool for description and analysis of various situations in and apart from mathematics. We derive the basic properties and focus on a…
In applied game theory the motivation of players is a key element. It is encoded in the payoffs of the game form and often based on utility functions. But there are cases were formal descriptions in the form of a utility function do not…
Product personalization opens the door to price discrimination. A rich product line allows firms to better tailor products to consumers' tastes, but the mere choice of a product carries valuable information about consumers that can be…
In coming years residential consumers will face real-time electricity tariffs with energy prices varying day to day, and effective energy saving will require automation - a recommender system, which learns consumer's preferences from her…
This paper studies a type of consumption preference where some adjustment costs are incured whenever the past spending maximum and the past spending minimum records are updated. This preference can capture the adverse effects of the…
People often face trade-offs between costs and benefits occurring at various points in time. The predominant discounting approach is to use the exponential form. Central to this approach is the discount rate, a unique parameter that…
Good economic mechanisms depend on the preferences of participants in the mechanism. For example, the revenue-optimal auction for selling an item is parameterized by a reserve price, and the appropriate reserve price depends on how much the…
Mechanized reasoning uses computers to verify proofs and to help discover new theorems. Computer scientists have applied mechanized reasoning to economic problems but -- to date -- this work has not yet been properly presented in economics…
Income- and price-elasticity of demand quantify the responsiveness of markets to changes in income, and in prices, respectively. Under the assumptions of utility maximization and preference-independence (additive preferences), mathematical…
To choose between two discrete goods, a consumer pays attention to only those with prices below a threshold. From these, she chooses her most preferred good. We assume consumers in a population have the same preference but may have…
Richard Cox [1] set the axiomatic foundations of probable inference and the algebra of propositions. He showed that consistency within these axioms requires certain rules for updating belief. In this paper we use the analogy between…