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We propose a novel symbolic modeling framework for decision-making under risk that merges interpretability with the core insights of Prospect Theory. Our approach replaces opaque utility curves and probability weighting functions with…

Artificial Intelligence · Computer Science 2025-04-22 Ali Arslan Yousaf , Umair Rehman , Muhammad Umair Danish

This survey reviews recent developments in revealed preference theory. It discusses the testable implications of theories of choice that are germane to specific economic environments. The focus is on expected utility in risky environments;…

Theoretical Economics · Economics 2019-12-04 Federico Echenique

Subjective expected utility theory assumes that decision-makers possess unlimited computational resources to reason about their choices; however, virtually all decisions in everyday life are made under resource constraints - i.e.…

Machine Learning · Statistics 2016-10-07 Pedro A. Ortega , Alan A. Stocker

Social gravity law widely exists in human travel, population migration, commodity trade, information communication, scientific collaboration and so on. Why is there such a simple law in many complex social systems is an interesting…

Physics and Society · Physics 2021-04-01 Hao Wang , Xiao-Yong Yan , Jinshan Wu

Causal Models are increasingly suggested as a means to reason about the behavior of cyber-physical systems in socio-technical contexts. They allow us to analyze courses of events and reason about possible alternatives. Until now, however,…

Artificial Intelligence · Computer Science 2019-11-13 Severin Kacianka , Amjad Ibrahim , Alexander Pretschner , Alexander Trende , Andreas Lüdtke

Understanding the movement behaviours of individuals and the way they react to the external world is a key component of any problem that involves the modelling of human dynamics at a physical level. In particular, it is crucial to capture…

Computer Vision and Pattern Recognition · Computer Science 2025-12-09 Gabriele Galatolo , Mirco Nanni

Human mobility is investigated using a continuum approach that allows to calculate the probability to observe a trip to anyarbitrary region, and the fluxes between any two regions. The considered description offers a general and unified…

Physics and Society · Physics 2013-04-02 Filippo Simini , Amos Maritan , Zoltán Néda

Robots need models of human behavior for both inferring human goals and preferences, and predicting what people will do. A common model is the Boltzmann noisily-rational decision model, which assumes people approximately optimize a reward…

Robotics · Computer Science 2020-01-14 Andreea Bobu , Dexter R. R. Scobee , Jaime F. Fisac , S. Shankar Sastry , Anca D. Dragan

We explain the main concepts of Prospect Theory and Cumulative Prospect Theory within the framework of rational dynamic asset pricing theory. We derive option pricing formulas when asset returns are altered with a generalized Prospect…

General Finance · Quantitative Finance 2020-03-10 Svetlozar Rachev , Frank J. Fabozzi , Boryana Racheva-Iotova , Abootaleb Shirvani

We introduce a new computational model of moral decision making, drawing on a recent theory of commonsense moral learning via social dynamics. Our model describes moral dilemmas as a utility function that computes trade-offs in values over…

Artificial Intelligence · Computer Science 2018-01-16 Richard Kim , Max Kleiman-Weiner , Andres Abeliuk , Edmond Awad , Sohan Dsouza , Josh Tenenbaum , Iyad Rahwan

As we discussed in Part I of this topic, there is a clear desire to model and comprehend human behavior. Given the popular presupposition of human reasoning as the standard for learning and decision-making, there have been significant…

Artificial Intelligence · Computer Science 2022-05-16 Andrew Fuchs , Andrea Passarella , Marco Conti

Challenge Theory (CT), a new approach to decision under risk departs significantly from expected utility, and is based on firmly psychological, rather than economic, assumptions. The paper demonstrates that a purely cognitive-psychological…

General Economics · Economics 2019-10-11 Samuel Shye , Ido Haber

In recent years, we have seen scientists attempt to model and explain human dynamics and, in particular, human movement. Many aspects of our complex life are affected by human movements such as disease spread and epidemics modeling, city…

Physics and Society · Physics 2018-11-05 Hugo Barbosa , Fernando Buarque de Lima Neto , Alexandre Evsukoff , Ronaldo Menezes

This paper builds a rule for decisionmaking from the physical behavior of single neurons, the well established neural circuitry of mutual inhibition, and the evolutionary principle of natural selection. No axioms are used in the derivation…

Theoretical Economics · Economics 2023-02-21 Valdes Salvador , Gonzalo ValdesEdwards

Despite the long history of modelling human mobility, we continue to lack a highly accurate approach with low data requirements for predicting mobility patterns in cities. Here, we present a population-weighted opportunities model without…

Physics and Society · Physics 2017-10-03 Xiao-Yong Yan , Chen Zhao , Ying Fan , Zengru Di , Wen-Xu Wang

Extensive work has been conducted both in game theory and logic to model strategic interaction. An important question is whether we can use these theories to design agents for interacting with people? On the one hand, they provide a formal…

Artificial Intelligence · Computer Science 2016-06-27 Sarit Kraus

Judgment of risk is key to decision-making under uncertainty. As Daniel Kahneman and Amos Tversky famously discovered, humans do so in a distinctive way that departs from mathematical rationalism. Specifically, they demonstrated…

Artificial Intelligence · Computer Science 2025-08-05 Kenneth Payne

Choice models for large-scale applications have historically relied on economic theories (e.g. utility maximisation) that establish relationships between the choices of individuals, their characteristics, and the attributes of the…

Econometrics · Economics 2025-06-24 Thomas O. Hancock , Stephane Hess , Charisma F. Choudhury

Random utility theory models an agent's preferences on alternatives by drawing a real-valued score on each alternative (typically independently) from a parameterized distribution, and then ranking the alternatives according to scores. A…

Multiagent Systems · Computer Science 2012-11-13 Hossein Azari Soufiani , David C. Parkes , Lirong Xia

Protecting against cyber-threats is vital for every organization and can be done by investing in cybersecurity controls and purchasing cyber insurance. However, these are interlinked since insurance premiums could be reduced by investing…

Econometrics · Economics 2024-12-02 Chaitanya Joshi , Jinming Yang , Sergeja Slapnicar , Ryan K L Ko