Related papers: Defaults: a double-edged sword in governing common…
One of the fundamental assumptions in stochastic control of continuous time processes is that the dynamics of the underlying (diffusion) process is known. This is, however, usually obviously not fulfilled in practice. On the other hand,…
In search engines, online marketplaces and other human-computer interfaces large collectives of individuals sequentially interact with numerous alternatives of varying quality. In these contexts, trial and error (exploration) is crucial for…
The sustainable management of common resources often leads to a social dilemma known as the tragedy of the commons: individuals benefit from rapid extraction of resources, while communities as a whole benefit from more sustainable…
Indirect reciprocity is a major mechanism in the maintenance of cooperation among unrelated individuals. Indirect reciprocity leads to conditional cooperation according to social norms that discriminate the good (those who deserve to be…
A standard quantitative method to access credit risk employs a factor model based on joint multivariate normal distribution properties. By extending a one-factor Gaussian copula model to make a more accurate default forecast, this paper…
Excessive leverage, i.e. the abuse of debt financing, is considered one of the primary factors in the default of financial institutions. Systemic risk results from correlations between individual default probabilities that cannot be…
Administrative burden has been growing in organizations despite many counterproductive effects. We develop a system dynamics model to explain why this phenomenon occurs and to explore potential remedies. Prior literature has identified…
Detecting defection and alarming partners about the possible danger could be essential to avoid being exploited. This act, however, may require a huge individual effort from those who take this job, hence such a strategy seems to be…
Indirect reciprocity is a mechanism for cooperation in social dilemma situations, in which an individual is motivated to help another to acquire a good reputation and receive help from others afterwards. Ingroup favoritism is another aspect…
Many biological, psychological and economic experiments have been designed where an organism or individual must choose between two options that have the same expected reward but differ in the variance of reward received. In this way,…
Diffusion in a linear potential in the presence of position-dependent killing is used to mimic a default process. Different assumptions regarding transport coefficients, initial conditions, and elasticity of the killing measure lead to…
We address challenges in variable selection with highly correlated data that are frequently present in finance, economics, but also in complex natural systems as e.g. weather. We develop a robustified version of the knockoff framework,…
As systems trend toward superintelligence, a natural modeling premise is that agents can self-improve along every facet of their own design. We formalize this with a five-axis decomposition and a decision layer, separating incentives from…
Collective foragers, from animals to robotic swarms, must balance exploration and exploitation to locate sparse resources efficiently. While social learning is known to facilitate this balance, how the range of information sharing shapes…
We consider two-player iterated survival games in which players may switch from a more cooperative behavior to a less cooperative one at some step of the game. Payoffs are survival probabilities and lone individuals have to finish the game…
Wealthy individuals may be less tempted to defect than those with comparatively low payoffs. To take this into consideration, we introduce coevolutionary success-driven multigames in structured populations. While the core game is always the…
While quite a few recent papers have explored game-resource feedback using the framework of evolutionary game theory, almost all the studies are confined to using time-continuous dynamical equations. Moreover, in such literature, the effect…
Cooperation on social networks is crucial for understanding human survival and development. Although network structure has been found to significantly influence cooperation, human experiments have observed different cooperation phenomena…
Snapshots of "best" (or "worst") experience are known to dominate human memory and may thus also have a significant effect on future behaviour. We consider here a model of repeated decision-making where, at every time step, an agent takes…
Background: Any sample of individuals has its own, unique distribution of preferences for choices that they make. Discrete choice models try to capture these distributions. Mixed logits are by far the most commonly used choice model in…