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The pursuit of highest payoffs in evolutionary social dilemmas is risky and sometimes inferior to conformity. Choosing the most common strategy within the interaction range is safer because it ensures that the payoff of an individual will…

Physics and Society · Physics 2014-12-23 Attila Szolnoki , Matjaz Perc

Assistive multi-armed bandit problems can be used to model team situations between a human and an autonomous system like a domestic service robot. To account for human biases such as the risk-aversion described in the Cumulative Prospect…

Robotics · Computer Science 2021-04-13 Michael Koller , Timothy Patten , Markus Vincze

We address the statistical estimation of composite functionals which may be nonlinear in the probability measure. Our study is motivated by the need to estimate coherent measures of risk, which become increasingly popular in finance,…

Statistics Theory · Mathematics 2015-04-13 Darinka Dentcheva , Spiridon Penev , Andrzej Ruszczynski

Evolutionary game theory has been widely used to study the evolution of cooperation in social dilemmas where imitation-led strategy updates are typically assumed. However, results of recent behavioral experiments are not compatible with the…

Physics and Society · Physics 2018-12-19 Ik Soo Lim , Peter Wittek

Users can now give back energies to the grid using distributed resources. Proper incentive mechanisms are required for such users, also known as prosumers, in order to maximize the sell-back amount while maintaining the retailer's profit.…

Optimization and Control · Mathematics 2022-03-14 Diptangshu Sen , Arnob Ghosh

This paper explores stochastic control models in the context of decarbonization within the energy market. We study three progressively complex scenarios: (1) a single firm operating with two technologies-one polluting and one clean,(2)two…

General Finance · Quantitative Finance 2025-06-18 Benhao Du , Thomas Treillard , Francois Wang

Safety and robustness are two desired properties for any reinforcement learning algorithm. CMDPs can handle additional safety constraints and RMDPs can perform well under model uncertainties. In this paper, we propose to unite these two…

Machine Learning · Computer Science 2021-08-21 Reazul Hasan Russel , Mouhacine Benosman , Jeroen Van Baar , Radu Corcodel

We present a strategic analysis of a trust model that has recently been proposed for promoting cooperative behaviour in user-centric networks. The mechanism for cooperation is based on a combination of reputation and virtual currency…

Computer Science and Game Theory · Computer Science 2013-03-05 Marta Kwiatkowska , David Parker , Aistis Simaitis

An important factor in the practical implementation of optimization models is the acceptance by the intended users. This is influenced among other factors by the interpretability of the solution process. Decision rules that meet this…

Machine Learning · Computer Science 2024-12-03 Marc Goerigk , Michael Hartisch , Sebastian Merten

We study finite normal-form games in which payoffs are subject to random perturbations and players face uncertainty about how these shocks co-move across actions, an ambiguity that naturally arises when only realized (not counterfactual)…

Theoretical Economics · Economics 2026-02-12 Yu Gui , Bahar Taşkesen

The principle of optimism in the face of uncertainty underpins many theoretically successful reinforcement learning algorithms. In this paper we provide a general framework for designing, analyzing and implementing such algorithms in the…

Machine Learning · Computer Science 2020-07-07 Gergely Neu , Ciara Pike-Burke

We consider the problem of designing an expected-revenue maximizing mechanism for allocating multiple non-perishable goods of $k$ varieties to flexible consumers over $T$ time steps. In our model, a random number of goods of each variety…

Computer Science and Game Theory · Computer Science 2020-07-08 Shiva Navabi , Ashutosh Nayyar

Energy prices and net power injection limitations regulate the operations in distribution grids and typically ensure that operational constraints are met. Nevertheless, unexpected or prolonged abnormal events could undermine the grid's…

Systems and Control · Electrical Eng. & Systems 2024-03-29 Guido Cavraro , Joshua Comden , Andrey Bernstein

A task of interest in machine learning (ML) is that of ascribing explanations to the predictions made by ML models. Furthermore, in domains deemed high risk, the rigor of explanations is paramount. Indeed, incorrect explanations can and…

Artificial Intelligence · Computer Science 2025-07-11 Mohamed Siala , Jordi Planes , Joao Marques-Silva

As machine learning models are increasingly being employed to make consequential decisions in real-world settings, it becomes critical to ensure that individuals who are adversely impacted (e.g., loan denied) by the predictions of these…

Machine Learning · Computer Science 2023-10-12 Martin Pawelczyk , Teresa Datta , Johannes van-den-Heuvel , Gjergji Kasneci , Himabindu Lakkaraju

Incentives play an important role in (security and IT) risk management of a large-scale organization with multiple autonomous divisions. This paper presents an incentive mechanism design framework for risk management based on a…

Computer Science and Game Theory · Computer Science 2010-12-16 Tansu Alpcan

We use optimism to introduce generic asymptotically optimal reinforcement learning agents. They achieve, with an arbitrary finite or compact class of environments, asymptotically optimal behavior. Furthermore, in the finite deterministic…

Artificial Intelligence · Computer Science 2013-05-17 Peter Sunehag , Marcus Hutter

In practical optimization problems, we typically model uncertainty as a random variable though its true probability distribution is unobservable to the decision maker. Historical data provides some information of this distribution that we…

Optimization and Control · Mathematics 2025-01-28 Arjun Ramachandra , Napat Rujeerapaiboon , Melvyn Sim

We consider a problem of placing generators of rewards to be collected by randomly moving agents in a network. In many settings, the precise mobility pattern may be one of several possible, based on parameters outside our control, such as…

Multiagent Systems · Computer Science 2024-06-04 Petros Petsinis , Kaichen Zhang , Andreas Pavlogiannis , Jingbo Zhou , Panagiotis Karras

Achieving incentive compatibility under informational decentralization is impossible within the class of direct and revelation-equivalent mechanisms typically studied in economics and computer science. We show that these impossibility…

Theoretical Economics · Economics 2026-02-03 David Lancashire