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We study the problem of option pricing and hedging strategies within the frame-work of risk-return arguments. An economic agent is described by a utility function that depends on profit (an expected value) and risk (a variance). In the…

Statistical Mechanics · Physics 2008-12-02 Erik Aurell , Karol Życzkowski

An agent makes decisions based on multiple sources of information. In isolation, each source is well understood, but their correlation is unknown. We study the agent's robustly optimal strategies -- those that give the best possible…

Theoretical Economics · Economics 2024-09-11 Henrique de Oliveira , Yuhta Ishii , Xiao Lin

This paper diverges from previous literature by considering the utility maximization problem in the context of investors having the freedom to actively acquire additional information to mitigate estimation risk. We derive closed-form value…

Mathematical Finance · Quantitative Finance 2024-05-16 Zongxia Liang , Qi Ye

Real-time inference is a challenge of real-world reinforcement learning due to temporal differences in time-varying environments: the system collects data from the past, updates the decision model in the present, and deploys it in the…

Machine Learning · Computer Science 2024-05-28 Hyunin Lee , Ming Jin , Javad Lavaei , Somayeh Sojoudi

Selective labels are a common feature of consequential decision-making applications, referring to the lack of observed outcomes under one of the possible decisions. This paper reports work in progress on learning decision policies in the…

Machine Learning · Computer Science 2020-11-04 Dennis Wei

Time-triggered and event-triggered control strategies for stabilization of an unstable plant over a rate-limited communication channel subject to unknown, bounded delay are studied and compared. Event triggering carries implicit…

Optimization and Control · Mathematics 2017-10-10 Mohammad Javad Khojasteh , Pavankumar Tallapragada , Jorge Cortes , Massimo Franceschetti

Reliable automated driving technology is challenged by various sources of uncertainties, in particular, behavioral uncertainties of traffic agents. It is common for traffic agents to have intentions that are unknown to others, leaving an…

Robotics · Computer Science 2025-06-10 David Isele , Alexandre Miranda Anon , Faizan M. Tariq , Goro Yeh , Avinash Singh , Sangjae Bae

Under non-exponential discounting, we develop a dynamic theory for stopping problems in continuous time. Our framework covers discount functions that induce decreasing impatience. Due to the inherent time inconsistency, we look for…

Optimization and Control · Mathematics 2017-03-13 Yu-Jui Huang , Adrien Nguyen-Huu

In many sequential decision problems, an agent performs a repeated task. He then suffers regret and obtains information that he may use in the following rounds. However, sometimes the agent may also obtain information and avoid suffering…

Machine Learning · Computer Science 2025-02-25 Itai Shufaro , Nadav Merlis , Nir Weinberger , Shie Mannor

When additional information sources are available in decision making problems that allow stochastic optimization formulations, an important question is how to optimally use the information the sources are capable of providing. A framework…

Data Analysis, Statistics and Probability · Physics 2013-02-04 Eugene Perevalov , David Grace

In learning-augmented online algorithms, predictions are usually valued for what they say: a value estimate, a solution, or an algorithmic recommendation. This paper shows that predictions can also be valuable solely due to their arrival…

Data Structures and Algorithms · Computer Science 2026-05-22 Franziska Eberle , Alexander Lindermayr

We introduce the concept of {\it fresh data trading}, in which a destination user requests, and pays for, fresh data updates from a source provider, and data freshness is captured by the {\it age of information} (AoI) metric. Keeping data…

Networking and Internet Architecture · Computer Science 2021-05-04 Meng Zhang , Ahmed Arafa , Jianwei Huang , H. Vincent Poor

In many traditional job scheduling settings, it is assumed that one knows the time it will take for a job to complete service. In such cases, strategies such as shortest job first can be used to improve performance in terms of measures such…

Data Structures and Algorithms · Computer Science 2019-05-24 Michael Mitzenmacher

We study the following fundamental data-driven pricing problem. How can/should a decision-maker price its product based on data at a single historical price? How valuable is such data? We consider a decision-maker who optimizes over…

Computer Science and Game Theory · Computer Science 2022-03-30 Amine Allouah , Achraf Bahamou , Omar Besbes

The proliferation of real-time applications has spurred much interest in data freshness, captured by the {\it age-of-information} (AoI) metric. When strategic data sources have private market information, a fundamental economic challenge is…

Networking and Internet Architecture · Computer Science 2020-12-17 Meng Zhang , Ahmed Arafa , Ermin Wei , Randall A. Berry

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 explore the connection between an agent's decision problem and her ranking of information structures. We find that a finite amount of ordinal data on the agent's ranking of experiments is enough to identify her (finite) set of…

Theoretical Economics · Economics 2024-04-02 Mark Whitmeyer

In Passive POMDPs actions do not affect the world state, but still incur costs. When the agent is bounded by information-processing constraints, it can only keep an approximation of the belief. We present a variational principle for the…

Machine Learning · Computer Science 2012-07-03 Roy Fox , Naftali Tishby

We consider an intermediary's problem of dynamically matching demand and supply of heterogeneous types in a periodic-review fashion. More specifically, there are two disjoint sets of demand and supply types, and a reward associated with…

Optimization and Control · Mathematics 2018-11-20 Ming Hu , Yun Zhou

We study the problem of learning the optimal item pricing for a unit-demand buyer with independent item values, and the learner has query access to the buyer's value distributions. We consider two common query models in the literature: the…

Computer Science and Game Theory · Computer Science 2025-06-04 Yifeng Teng , Yifan Wang