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Neuroeconomic conditions for "rational addiction" (Becker and Murphy, 1988) have been unknown. This paper derived the conditions for "rational addiction" by utilizing a nonlinear time-perception theory of "hyperbolic" discounting, which is…

Biological Physics · Physics 2012-12-04 Taiki Takahashi

Users of shared control systems change their behavior in the presence of assistance, which conflicts with assumpts about user behavior that some assistance methods make. In this paper, we propose an analysis technique to evaluate the user's…

Robotics · Computer Science 2024-08-23 Reuben M. Aronson , Elaine Schaertl Short

This paper addresses the problem of identifying and estimating the causal effect of a treatment in the presence of unmeasured confounding and various types of right-censoring. Examples of these censoring mechanisms are administrative…

Statistics Theory · Mathematics 2025-03-19 Ilias Willems , Sara Rutten , Gilles Crommen , Ingrid Van Keilegom

When decision makers evaluate a sequence of rewards, they may pay more attention to larger rewards and, given attention is limited, less attention to smaller rewards. They may also become less attentive to each reward when attention is…

Theoretical Economics · Economics 2025-05-20 Zijian Zark Wang

A prominent theme in behavioural contract theory is the study of present-biased agents represented through quasi-hyperbolic discounting. In a model of competitive credit provision, we study an alternative to this framework in which the…

Theoretical Economics · Economics 2026-02-11 Siddharth Chatterjee , Daniel F. Garrett

We consider the setting of iterative learning control, or model-based policy learning in the presence of uncertain, time-varying dynamics. In this setting, we propose a new performance metric, planning regret, which replaces the standard…

Machine Learning · Computer Science 2021-03-01 Naman Agarwal , Elad Hazan , Anirudha Majumdar , Karan Singh

This study proposes a tractable stochastic choice model to identify motivations for prosocial behavior, and to explore alternative motivations of deliberate randomization beyond ex-ante fairness concerns. To represent social preferences, we…

Theoretical Economics · Economics 2023-05-01 Yosuke Hashidate , Keisuke Yoshihara

The performance of an energy system under a real-time pricing mechanism depends on the consumption behavior of its customers, which involves uncertainties. In this paper, we consider a system operator that charges its customers with a…

Systems and Control · Computer Science 2016-11-17 Ceyhun Eksin , Hakan Delic , Alejandro Ribeiro

This paper re-examines the use of response time to infer problem complexity. It revisits a canonical Wald model of optimal stopping, taking signal-to-noise ratio as a measure of problem complexity. While choice quality is monotone in…

Theoretical Economics · Economics 2024-06-19 Duarte Gonçalves

Ambition and risk-taking have been heralded as important ways for marginalized communities to get out of cycles of poverty. As a result, educational messaging often encourages individuals to strengthen their personal resolve and develop…

Computers and Society · Computer Science 2025-05-06 Avrim Blum , Emily Diana , Kavya Ravichandran , Alexander Williams Tolbert

Modeling social interactions based on individual behavior has always been an area of interest, but prior literature generally presumes rational behavior. Thus, such models may miss out on capturing the effects of biases humans are…

Artificial Intelligence · Computer Science 2019-03-11 Nanda Kishore Sreenivas , Shrisha Rao

Congestion game is a widely used model for modern networked applications. A central issue in such applications is that the selfish behavior of the participants may result in resource overloading and negative externalities for the system…

Systems and Control · Electrical Eng. & Systems 2020-02-17 Ezra Tampubolon , Haris Ceribasic , Holger Boche

This paper develops theoretical criteria and econometric methods to rank policy interventions in terms of welfare when individuals are loss-averse. Our new criterion for "loss aversion-sensitive dominance" defines a weak partial ordering of…

Econometrics · Economics 2023-09-07 Sergio Firpo , Antonio F. Galvao , Martyna Kobus , Thomas Parker , Pedro Rosa-Dias

As a firm varies the price of a product, consumers exhibit reference effects, making purchase decisions based not only on the prevailing price but also the product's price history. We consider the problem of learning such behavioral…

Computer Science and Game Theory · Computer Science 2017-08-31 Abbas Kazerouni , Benjamin Van Roy

Self-reflecting about our performance (e.g., how confident we are) before doing a task is essential for decision making, such as selecting the most suitable tool or choosing the best route to drive. While this form of awareness -- thinking…

Robotics · Computer Science 2024-03-07 Ajith Anil Meera , Pablo Lanillos

In this paper we study continuous-time stochastic control problems with both monotone and classical controls motivated by the so-called public good contribution problem. That is the problem of n economic agents aiming to maximize their…

Optimization and Control · Mathematics 2018-05-23 Giorgio Ferrari , Frank Riedel , Jan-Henrik Steg

Human interactions are influenced by emotions, temperament, and affection, often conflicting with individuals' underlying preferences. Without explicit knowledge of those preferences, judging whether behaviour is appropriate becomes…

Computer Science and Game Theory · Computer Science 2025-11-05 Victor Villin , Christos Dimitrakakis

We consider a regulator driving individual choices towards increasing social welfare by providing personal incentives. We formalise and solve this problem by maximising social welfare under a budget constraint. The personalised incentives…

General Economics · Economics 2023-11-27 Lucas Javaudin , Andrea Araldo , André de Palma

In daily life, subjects often face a social dilemma in two stages. In Stage 1, they recognize the social dilemma structure of the decision problem at hand (a tension between personal interest and collective interest); in Stage 2, they have…

Populations and Evolution · Quantitative Biology 2016-03-17 Valerio Capraro , Jotte Kuilder

We introduce a methodology for efficiently computing a lower bound to empowerment, allowing it to be used as an unsupervised cost function for policy learning in real-time control. Empowerment, being the channel capacity between actions and…