Related papers: Nonlinear desirability theory
This article presents a unified probabilistic framework that allows both rational and irrational decision making to be theoretically investigated and simulated in classical and quantum games. Rational choice theory is a basic component of…
The Nash equilibrium paradigm, and Rational Choice Theory in general, rely on agents acting independently from each other. This note shows how this assumption is crucial in the definition of Rational Choice Theory. It explains how a…
This paper studies the identification, estimation, and hypothesis testing problem in complete and incomplete economic models with testable assumptions. Testable assumptions ($A$) give strong and interpretable empirical content to the models…
An analyst observes an agent take a sequence of actions. The analyst does not have access to the agent's information and ponders whether the observed actions could be justified through a rational Bayesian model with a known utility…
In our previous work, we proposed the logic obtained from full non-associative Lambek calculus by adding a sort of linear-logical modality. We call this logic non-associative non-commutative intuitionistic linear logic ($\mathbf{NACILL}$,…
Probability forecasts are intended to account for the uncertainties inherent in forecasting. It is suggested that from an end-user's point of view probability is not necessarily sufficient to reflect uncertainties that are not simply the…
We consider randomized mechanisms with optional participation. Preferences over lotteries are modeled using skew-symmetric bilinear (SSB) utility functions, a generalization of classic von Neumann-Morgenstern utility functions. We show that…
Defeasible logic is a rule-based nonmonotonic logic, with both strict and defeasible rules, and a priority relation on rules. We show that inference in the propositional form of the logic can be performed in linear time. This contrasts…
In this article, we investigate the arithmetical hierarchy from the perspective of realizability theory. An experimental observation in classical computability theory is that the notion of degrees of unsolvability for natural arithmetical…
Diversification is the typical investment strategy of risk-averse agents. However, non-diversified positions that allocate all resources to a single asset, state of the world or revenue stream are common too. We show that whenever finitely…
This article focuses on the work of O. Chanel and G. Chichilnisky (2013) on the flaws of expected utility theory while assessing the value of life. Expected utility is a fundamental tool in decision theory. However, it does not fit with the…
In two recent papers, I have proposed a description of decision analysis that differs from the Bayesian picture painted by Savage, Jeffrey and other classic authors. Response to this view has been either overly enthusiastic or unduly…
Auctions in which agents' payoffs are random variables have received increased attention in recent years. In particular, recent work in algorithmic mechanism design has produced mechanisms employing internal randomization, partly in…
Social decision schemes (SDSs) map the ordinal preferences of individual voters over multiple alternatives to a probability distribution over the alternatives. In order to study the axiomatic properties of SDSs, we lift preferences over…
We define a logic of propositional formula schemata adding to the syntax of propositional logic indexed propositions and iterated connectives ranging over intervals parameterized by arithmetic variables. The satisfiability problem is shown…
The problem of robust utility maximization in an incomplete market with volatility uncertainty is considered, in the sense that the volatility of the market is only assumed to lie between two given bounds. The set of all possible models…
This paper analyzes a society composed of individuals who have diverse sets of beliefs (or models) and diverse tastes (or utility functions). It characterizes the model selection process of a social planner who wishes to aggregate…
Determining consumer preferences and utility is a foundational challenge in economics. They are central in determining consumer behaviour through the utility-maximising consumer decision-making process. However, preferences and utilities…
Decision theories offer principled methods for making choices under various types of uncertainty. Algorithms that implement these theories have been successfully applied to a wide range of real-world problems, including materials and drug…
We provide a formal framework accounting for a widespread idea in the theory of economic design: analytically established incompatibilities between given axioms should be qualified by the likelihood of their violation. We define the degree…