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Information-theoretic principles for learning and acting have been proposed to solve particular classes of Markov Decision Problems. Mathematically, such approaches are governed by a variational free energy principle and allow solving MDP…

Artificial Intelligence · Computer Science 2016-04-08 Jordi Grau-Moya , Felix Leibfried , Tim Genewein , Daniel A. Braun

Two-stage stochastic programs (2SPs) are important tools for making decisions under uncertainty. Decision-makers use contextual information to generate a set of scenarios to represent the true conditional distribution. However, the number…

Optimization and Control · Mathematics 2025-02-11 David Islip , Roy H. Kwon , Sanghyeon Bae , Woo Chang Kim

We explore a stochastic model that enables capturing external influences in two specific ways. The model allows for the expression of uncertainty in the parametrisation of the stochastic dynamics and incorporates patterns to account for…

Pricing of Securities · Quantitative Finance 2024-04-11 Felix L. Wolf , Griselda Deelstra , Lech A. Grzelak

In this paper, we consider sequential dynamic team decision problems with nonclassical information structures. First, we address the problem from the point of view of a ``manager" who seeks to derive the optimal strategy of the team in a…

Optimization and Control · Mathematics 2024-07-23 Andreas A. Malikopoulos

Even if path planning can be solved using standard techniques from dynamic programming and control, the problem can also be approached using probabilistic inference. The algorithms that emerge using the latter framework bear some appealing…

We present a new approach to the solution of decision problems formulated as influence diagrams. The approach converts the influence diagram into a simpler structure, the LImited Memory Influence Diagram (LIMID), where only the requisite…

Artificial Intelligence · Computer Science 2013-01-18 Dennis Nilsson , Steffen L. Lauritzen

Multi stage stochastic programs arise in many applications from engineering whenever a set of inventories or stocks has to be valued. Such is the case in seasonal storage valuation of a set of cascaded reservoir chains in hydro management.…

Optimization and Control · Mathematics 2019-12-02 Wim Van-Ackooij , Xavier Warin

This paper describes a new algorithm to solve the decision making problem in Influence Diagrams based on algorithms for credal networks. Decision nodes are associated to imprecise probability distributions and a reformulation is introduced…

Artificial Intelligence · Computer Science 2012-06-18 Cassio Polpo de Campos , Qiang Ji

We describe a framework and an algorithm for solving hybrid influence diagrams with discrete, continuous, and deterministic chance variables, and discrete and continuous decision variables. A continuous chance variable in an influence…

Artificial Intelligence · Computer Science 2012-03-19 Yijing Li , Prakash P. Shenoy

Robust optimization is a popular paradigm for modeling and solving two- and multi-stage decision-making problems affected by uncertainty. In many real-world applications, the time of information discovery is decision-dependent and the…

Optimization and Control · Mathematics 2022-08-24 Phebe Vayanos , Angelos Georghiou , Han Yu

Recent interests in dynamic decision modeling have led to the development of several representation and inference methods. These methods however, have limited application under time critical conditions where a trade-off between model…

Artificial Intelligence · Computer Science 2013-01-30 Yanping Xiang , Kim-Leng Poh

We propose a novel data-driven stochastic model predictive control framework for uncertain linear systems with noisy output measurements. Our approach leverages multi-step predictors to efficiently propagate uncertainty, ensuring chance…

Systems and Control · Electrical Eng. & Systems 2025-03-18 Haldun Balim , Andrea Carron , Melanie N. Zeilinger , Johannes Köhler

Economists often estimate economic models on data and use the point estimates as a stand-in for the truth when studying the model's implications for optimal decision-making. This practice ignores model ambiguity, exposes the decision…

Econometrics · Economics 2021-10-07 Maximilian Blesch , Philipp Eisenhauer

Model uncertainties and simulation uncertainties occur in mathematical modeling of multiscale complex systems, since some mechanisms or scales are not represented (i.e., "unresolved") due to lack in our understanding of these mechanisms or…

Dynamical Systems · Mathematics 2008-11-25 Jinqiao Duan

We study a class of two-stage stochastic programs, namely, those with fixed recourse matrix and fixed costs, and linear second stage. We show that, under mild assumptions, the problem can be solved with just one scenario, which we call an…

Optimization and Control · Mathematics 2025-10-29 Tito Homem-de-Mello , Juan Valencia , Felipe Lagos , Guido Lagos

Predicting competitive outcomes typically requires fitting dynamical models to data, from which interaction strengths and coexistence indicators such as invasion criteria can be produced. Methods that allow to propagate parameter…

Populations and Evolution · Quantitative Biology 2025-04-10 Matthieu Paquet , Frédéric Barraquand

Random factor graphs provide a powerful framework for the study of inference problems such as decoding problems or the stochastic block model. Information-theoretically the key quantity of interest is the mutual information between the…

Discrete Mathematics · Computer Science 2021-04-27 Amin Coja-Oghlan , Max Hahn-Klimroth , Philipp Loick , Noela Müller , Konstantinos Panagiotou , Matija Pasch

Neural circuits exhibit remarkable computational flexibility, enabling adaptive responses to noisy and ever-changing environmental cues. A fundamental question in neuroscience concerns how a wide range of behaviors can emerge from a…

Statistical Mechanics · Physics 2025-09-18 Giacomo Barzon , Daniel M. Busiello , Giorgio Nicoletti

The communication of uncertainty estimates, predictions and insights based on spatio-temporal models is important for decision-making as it impacts the utilisation and interpretation of information. Bivariate mapping is commonly used for…

Human-Computer Interaction · Computer Science 2021-12-15 Letitia Sabburg , Alan Woodley , Kerrie Mengersen

Multistage stochastic optimization problems are, by essence, complex as their solutions are indexed both by stages and by uncertainties. Their large scale nature makes decomposition methods appealing, like dynamic programming which is a…

Optimization and Control · Mathematics 2023-05-01 Pierre Carpentier , Jean-Philippe Chancelier , Michel de Lara , Thomas Martin , Tristan Rigaut