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We study a class of robust assortment optimization problems that was proposed by Farias, Jagabathula, and Shah (2013). The goal in these problems is to find an assortment that maximizes a firm's worst-case expected revenue under all…

Optimization and Control · Mathematics 2024-02-28 Bradley Sturt

This paper introduces the distributionally robust random utility model (DRO-RUM), which allows the preference shock (unobserved heterogeneity) distribution to be misspecified or unknown. We make three contributions using tools from the…

Theoretical Economics · Economics 2023-03-13 David Müller , Emerson Melo , Ruben Schlotter

We propose a new discrete choice model, called the generalized stochastic preference (GSP) model, that incorporates non-rationality into the stochastic preference (SP) choice model, also known as the rank-based model. Our model can capture…

Computer Science and Game Theory · Computer Science 2025-08-28 Gerardo Berbeglia , Ashwin Venkataraman

Multivariate shortfall risk measures provide a principled framework for quantifying systemic risk and determining capital allocations prior to aggregation in interconnected financial systems. Despite their well established theoretical…

Computational Finance · Quantitative Finance 2026-03-09 Chiheb Ben Hammouda , Truong Ngoc Nguyen

Probabilistic Regression Trees (PRTrees) generalize traditional decision trees by incorporating probability functions that associate each data point with different regions of the tree, providing smooth decisions and continuous responses.…

Methodology · Statistics 2025-10-07 Taiane Schaedler Prass , Alisson Silva Neimaier , Guilherme Pumi

A recent line of work, starting with Beigman and Vohra (2006) and Zadimoghaddam and Roth (2012), has addressed the problem of {\em learning} a utility function from revealed preference data. The goal here is to make use of past data…

Computer Science and Game Theory · Computer Science 2014-07-31 Maria-Florina Balcan , Amit Daniely , Ruta Mehta , Ruth Urner , Vijay V. Vazirani

The conditional value-at-risk (CVaR) is a useful risk measure in fields such as machine learning, finance, insurance, energy, etc. When measuring very extreme risk, the commonly used CVaR estimation method of sample averaging does not work…

Methodology · Statistics 2021-03-10 Dylan Troop , Frédéric Godin , Jia Yuan Yu

Prognostics or Remaining Useful Life (RUL) Estimation from multi-sensor time series data is useful to enable condition-based maintenance and ensure high operational availability of equipment. We propose a novel deep learning based approach…

Machine Learning · Computer Science 2021-03-05 Vishnu TV , Diksha , Pankaj Malhotra , Lovekesh Vig , Gautam Shroff

The ratio between the probability that two distributions $R$ and $P$ give to points $x$ are known as importance weights or propensity scores and play a fundamental role in many different fields, most notably, statistics and machine…

Machine Learning · Computer Science 2021-03-11 Parikshit Gopalan , Omer Reingold , Vatsal Sharan , Udi Wieder

We consider assortment optimization over a continuous spectrum of products represented by the unit interval, where the seller's problem consists of determining the optimal subset of products to offer to potential customers. To describe the…

Machine Learning · Statistics 2021-04-15 Yannik Peeters , Arnoud V. den Boer , Michel Mandjes

This article describes a multivariate polynomial regression method where the uncertainty of the input parameters are approximated with Gaussian distributions, derived from the central limit theorem for large weighted sums, directly from the…

Machine Learning · Statistics 2013-10-04 Peter Kovesarki , Ian C. Brock

We consider settings in which the distribution of a multivariate random variable is partly ambiguous. We assume the ambiguity lies on the level of the dependence structure, and that the marginal distributions are known. Furthermore, a…

Mathematical Finance · Quantitative Finance 2020-05-27 Stephan Eckstein , Michael Kupper , Mathias Pohl

Reinforcement Learning (RL) has emerged as a powerful tool for neural combinatorial optimization, enabling models to learn heuristics that solve complex problems without requiring expert knowledge. Despite significant progress, existing RL…

Machine Learning · Computer Science 2025-05-14 Mingjun Pan , Guanquan Lin , You-Wei Luo , Bin Zhu , Zhien Dai , Lijun Sun , Chun Yuan

Despite the strong theoretical guarantees that variance-reduced finite-sum optimization algorithms enjoy, their applicability remains limited to cases where the memory overhead they introduce (SAG/SAGA), or the periodic full gradient…

Optimization and Control · Mathematics 2021-03-24 Ayoub El Hanchi , David A. Stephens

To take unit commitment (UC) decisions under uncertain net load, most studies utilize a stochastic UC (SUC) model that adopts a one-size-fits-all representation of uncertainty. Disregarding contextual information such as weather forecasts…

Optimization and Control · Mathematics 2022-12-01 Ogun Yurdakul , Feng Qiu , Sahin Albayrak

The Random Utility Maximization model is by far the most adopted framework to estimate consumer choice behavior. However, behavioral economics has provided strong empirical evidence of irrational choice behavior, such as halo effects, that…

Econometrics · Economics 2021-09-10 Sanjay Dominik Jena , Andrea Lodi , Claudio Sole

Under the Fundamental Review of the Trading Book (FRTB) capital charges for the trading book are based on the coherent expected shortfall (ES) risk measure, which show greater sensitivity to tail risk. In this paper it is argued that…

Risk Management · Quantitative Finance 2016-11-16 Marie Kratz , Yen H. Lok , Alexander J McNeil

We generalize the stochastic revealed preference methodology of McFadden and Richter (1990) for finite choice sets to settings with limited consideration. Our approach is nonparametric and requires partial choice set variation. We impose a…

Theoretical Economics · Economics 2022-05-19 Nail Kashaev , Victor H. Aguiar

Value-at-risk (VaR) and expected shortfall (ES) are two commonly utilized metrics for quantifying financial risk. In this study, we review the widely employed Generalized Autoregressive Conditional Heteroskedasticity (GARCH) models. These…

Computation · Statistics 2024-05-14 Kanon Kamronnaher , Andrew Bellucco , Whitney K. Huang , Colin M. Gallagher

When outcomes are missing for reasons beyond an investigator's control, there are two different ways to adjust a parameter estimate for covariates that may be related both to the outcome and to missingness. One approach is to model the…

Methodology · Statistics 2008-12-18 Joseph D. Y. Kang , Joseph L. Schafer
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