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This paper provides partial identification of various binary choice models with misreported dependent variables. We propose two distinct approaches by exploiting different instrumental variables respectively. In the first approach, the…

Econometrics · Economics 2024-01-31 Orville Mondal , Rui Wang

We discuss representing and reasoning with knowledge about the time-dependent utility of an agent's actions. Time-dependent utility plays a crucial role in the interaction between computation and action under bounded resources. We present a…

Artificial Intelligence · Computer Science 2013-03-26 Eric J. Horvitz , Geoffrey Rutledge

We study a model of user decision-making in the context of recommender systems via numerical simulation. Our model provides an explanation for the findings of Nguyen, et. al (2014), where, in environments where recommender systems are…

Computers and Society · Computer Science 2020-07-27 Guy Aridor , Duarte Goncalves , Shan Sikdar

The classical Merton investment problem predicts deterministic, state-dependent portfolio rules; however, laboratory and field evidence suggests that individuals often prefer randomized decisions leading to stochastic and noisy choices.…

Mathematical Finance · Quantitative Finance 2026-02-17 Min Dai , Yuchao Dong , Yanwei Jia , Xun Yu Zhou

While popularity bias is recognized to play a crucial role in recommmender (and other ranking-based) systems, detailed analysis of its impact on collective user welfare has largely been lacking. We propose and theoretically analyze a…

Information Retrieval · Computer Science 2023-11-03 Guy Tennenholtz , Martin Mladenov , Nadav Merlis , Robert L. Axtell , Craig Boutilier

Economic choices are often stochastic: the same person may make a different choice when facing the same alternatives repeatedly. Standard models assume that the degree of randomness reflects the size of utility differences, but choice…

Theoretical Economics · Economics 2026-05-05 Shuhua Si

Model misspecification is ubiquitous in data analysis because the data-generating process is often complex and mathematically intractable. Therefore, assessing estimation uncertainty and conducting statistical inference under a possibly…

Methodology · Statistics 2023-12-19 Rong Li , Yichen Qin , Yang Li

The maximum utility estimation proposed by Elliott and Lieli (2013) can be viewed as cost-sensitive binary classification; thus, its in-sample overfitting issue is similar to that of perceptron learning. A utility-maximizing prediction rule…

Econometrics · Economics 2021-09-29 Jiun-Hua Su

In the theory of social choice the research is focused around the projection of individual preference orders to the social preference order. Also, the justification of the preference order formalism begins with the concept of utility i.e.…

Computer Science and Game Theory · Computer Science 2010-10-27 Redjan F. Shabani

We are interested in the effect of consumer demand estimation error for new products in the context of production planning. An inventory model is proposed, whereby demand is influenced by price and advertising. The effect of parameter…

Optimization and Control · Mathematics 2015-10-23 Antoine Deza , Kai Huang , Michael R. Metel

Attempts to replicate probabilistic reasoning in expert systems have typically overlooked a critical ingredient of that process. Probabilistic analysis typically requires extensive judgments regarding interdependencies among hypotheses and…

Artificial Intelligence · Computer Science 2013-04-15 Marvin S. Cohen

Choice functions accept a set of alternatives as input and produce a preferred subset of these alternatives as output. We study the problem of learning such functions under conditions of context-dependence of preferences, which means that…

Machine Learning · Computer Science 2021-10-25 Karlson Pfannschmidt , Pritha Gupta , Björn Haddenhorst , Eyke Hüllermeier

We characterize the identified sets of a wide range of stochastic choice models, including random utility, various models of boundedly-rational behavior, and dynamic discrete choice. In each of these settings, we show two distributions over…

Theoretical Economics · Economics 2026-02-24 Peter Caradonna , Christopher Turansick

Choice decisions made by users of online applications can suffer from biases due to the users' level of engagement. For instance, low engagement users may make random choices with no concern for the quality of items offered. This biased…

Applications · Statistics 2016-08-30 Zhengli Wang , Tauhid Zaman

Given only aggregate choice data and limited information about how menus are distributed across the population, we describe what can be inferred robustly about the distribution of preferences (or more general decision rules). We strengthen…

Theoretical Economics · Economics 2024-05-16 Larry G Epstein , Kaushil Patel

We investigate how individuals form expectations about population behavior using statistical inference based on observations of their social relations. Misperceptions about others' connectedness and behavior arise from sampling bias…

Theoretical Economics · Economics 2022-05-27 Andreas Bjerre-Nielsen , Martin Benedikt Busch

Analysis of sample survey data often requires adjustments to account for missing data in the outcome variables of principal interest. Standard adjustment methods based on item imputation or on propensity weighting factors rely heavily on…

Methodology · Statistics 2016-03-08 Wei-Yin Loh , John Eltinge , MoonJung Cho , Yuanzhi Li

We consider adaptive decision-making problems where an agent optimizes a cumulative performance objective by repeatedly choosing among a finite set of options. Compared to the classical prediction-with-expert-advice set-up, we consider…

Machine Learning · Computer Science 2023-04-10 Michael Muehlebach

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

Aggregating risks from multiple sources can be complex and demanding, and decision makers usually adopt heuristics to simplify the evaluation process. This paper axiomatizes two closed related and yet different heuristics, narrow bracketing…

Theoretical Economics · Economics 2021-08-30 Mu Zhang
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