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Related papers: The Value of Information in Stopping Problems

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We introduce an interactive market setup with sequential auctions where agents receive variegated signals with a known deadline. The effects of differential information and mutual learning on the allocation of overall profit \& loss (P\&L)…

Mathematical Finance · Quantitative Finance 2016-10-14 N. Serhan Aydin

In the classical optimal stopping problem, a player is given a sequence of random variables $X_1\ldots X_n$ with known distributions. After observing the realization of $X_i$, the player can either accept the observed reward from $X_i$ and…

Discrete Mathematics · Computer Science 2020-07-24 Shipra Agrawal , Jay Sethuraman , Xingyu Zhang

Suppose you have one unit of stock, currently worth 1, which you must sell before time $T$. The Optional Sampling Theorem tells us that whatever stopping time we choose to sell, the expected discounted value we get when we sell will be 1.…

Probability · Mathematics 2016-07-22 Philip Ernst , L. C. G. Rogers , Quan Zhou

In decision problems under incomplete information, actions (identified to payoff vectors indexed by states of nature) and beliefs are naturally paired by bilinear duality. We exploit this duality to analyze the value of information, using…

Optimization and Control · Mathematics 2019-11-21 Michel de Lara , Olivier Gossner

We investigate the mechanism design problem faced by a principal who hires \emph{multiple} agents to gather and report costly information. Then, the principal exploits the information to make an informed decision. We model this problem as a…

Computer Science and Game Theory · Computer Science 2023-07-13 Federico Cacciamani , Matteo Castiglioni , Nicola Gatti

Today's queueing network systems are more rapidly evolving and more complex than those of even a few years ago. The goal of this paper is to study customers' behavior in an unobservable Markovian M/M/1 queue where consumers have to choose…

Optimization and Control · Mathematics 2019-01-11 Tesnim Naceur , Yezekael Hayel

We show that under mild assumptions, the total value of information to informed traders in the market can be measured by the covariance between price changes and order flow. This covariance captures noise trader losses, which equal informed…

General Finance · Quantitative Finance 2026-05-13 Ohad Kadan , Asaf Manela

When additional information sources are available, an important question for an agent solving a certain problem is how to optimally use the information the sources are capable of providing. A framework that relates information accuracy on…

Data Analysis, Statistics and Probability · Physics 2013-01-11 Eugene Perevalov , David Grace

We address the problem where a mobile search agent seeks to find an unknown number of stationary objects distributed in a bounded search domain, and the search mission is subject to time/distance constraint. Our work accounts for false…

Robotics · Computer Science 2018-06-26 Harun Yetkin , Collin Lutz , Daniel Stilwell

In this work, we study an upgrading scheme for online resource allocation problems. We work in a sequential setting, where at each round a request for a resource arrives and the decision-maker has to decide whether to accept it (and thus,…

Optimization and Control · Mathematics 2024-02-15 Patrick Jaillet , Chara Podimata , Andrew Vakhutinsky , Zijie Zhou

In nonstationary bandit learning problems, the decision-maker must continually gather information and adapt their action selection as the latent state of the environment evolves. In each time period, some latent optimal action maximizes…

Machine Learning · Computer Science 2023-12-27 Seungki Min , Daniel Russo

We consider an optimal stopping time problem related with many models found in real options problems. The main goal of this work is to bring for the field of real options, different and more realistic pay-off functions, and negative…

Optimization and Control · Mathematics 2017-01-10 Manuel Guerra , Cláudia Nunes , Carlos Oliveira

This paper studies information transmission from multiple senders who compete for the attention of a decision maker. Each sender is partially informed about the state of the world and decides how to reveal her information over time to…

Theoretical Economics · Economics 2024-10-15 Jan Knoepfle

We consider "time-of-use" pricing as a technique for matching supply and demand of temporal resources with the goal of maximizing social welfare. Relevant examples include energy, computing resources on a cloud computing platform, and…

Computer Science and Game Theory · Computer Science 2017-04-11 Shuchi Chawla , Nikhil R. Devanur , Alexander E. Holroyd , Anna Karlin , James Martin , Balasubramanian Sivan

Stochastic optimization is one of the central problems in Machine Learning and Theoretical Computer Science. In the standard model, the algorithm is given a fixed distribution known in advance. In practice though, one may acquire at a cost…

Data Structures and Algorithms · Computer Science 2023-06-07 Mingchen Ma , Christos Tzamos

Data is fundamental to machine learning-based products and services and is considered strategic due to its externalities for businesses, governments, non-profits, and more generally for society. It is renowned that the value of…

Machine Learning · Computer Science 2022-03-18 Ehsan Valavi , Joel Hestness , Marco Iansiti , Newsha Ardalani , Feng Zhu , Karim R. Lakhani

In the design of closed-loop networked control systems (NCSs), induced transmission delay between sensors and the control station is an often-present issue which compromises control performance and may even cause instability. A very…

Optimization and Control · Mathematics 2018-08-01 Dipankar Maity , Mohammad H. Mamduhi , Sandra Hirche , Karl Henrik Johansson , John S. Baras

Candidates arrive sequentially for an interview process which results in them being ranked relative to their predecessors. Based on the ranks available at each time, one must develop a decision mechanism that selects or dismisses the…

Data Structures and Algorithms · Computer Science 2024-05-08 George V. Moustakides , Xujun Liu , Olgica Milenkovic

Perfectly rational decision-makers maximize expected utility, but crucially ignore the resource costs incurred when determining optimal actions. Here we employ an axiomatic framework for bounded rational decision-making based on a…

Artificial Intelligence · Computer Science 2011-07-29 Pedro A. Ortega , Daniel A. Braun

In this chapter, we present our recent invention, i.e., the notion of the value of information$\unicode{x2014}$a semantic metric that is fundamental for networked control systems tasks. We begin our analysis by formulating a causal tradeoff…

Information Theory · Computer Science 2024-03-20 Touraj Soleymani , John S. Baras , Sandra Hirche , Karl H. Johansson
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