Related papers: Absolute and Relative Ambiguity Attitudes
Most people are risk-averse (risk-seeking) when they expect to gain (lose). Based on a generalization of ``expected utility theory'' which takes this into account, we introduce an automaton mimicking the dynamics of economic operations.…
The rapid adaptation ability of auto-regressive foundation models is often attributed to the diversity of their pre-training data. This is because, from a Bayesian standpoint, minimizing prediction error in such settings requires…
The tendency of repeating past choices more often than expected from the history of outcomes has been repeatedly empirically observed in reinforcement learning experiments. It can be explained by at least two computational processes:…
Recent work has shown that models trained to the same objective, and which achieve similar measures of accuracy on consistent test data, may nonetheless behave very differently on individual predictions. This inconsistency is undesirable in…
Unaided human decision making appears to systematically violate consistency constraints imposed by normative theories; these biases in turn appear to justify the application of formal decision-analytic models. It is argued that both claims…
Recently, Halpern and Leung suggested representing uncertainty by a weighted set of probability measures, and suggested a way of making decisions based on this representation of uncertainty: maximizing weighted regret. Their paper does not…
Testing procedures for predictive regressions with lagged autoregressive variables imply a suboptimal inference in presence of small violations of ideal assumptions. We propose a novel testing framework resistant to such violations, which…
Consider a persuasion game where both the sender and receiver are ambiguity averse with maxmin expected utility (MEU) preferences and the sender can choose an ambiguous information structure. This paper analyzes the game in an ex-ante…
There is knowledge. There is belief. And there is tacit agreement.' 'We may talk about objects. We may talk about attributes of the objects. Or we may talk both about objects and their attributes.' This work inspects tacit agreements on…
This paper presents a generalization of the disjunctive paraconsistent relational data model in which disjunctive positive and negative information can be represented explicitly and manipulated. There are situations where the closed world…
This paper proposes a dual opinions co-evolution model based on the dual attitudes theory in social psychology, where every individual has dual opinions of an object: implicit and explicit opinions. The implicit opinions are individuals'…
We introduce an axiom of disappointment-concordance (disco) aversion for a preference relation over acts in an Anscombe-Aumann setting. This axiom means that the decision maker, facing the sum of two acts, dislikes the situation where both…
This study provides a solution of the equity premium puzzle. Questioning the validity of the Arrow-Pratt measure of relative risk aversion for detecting the risk behavior of investors under all conditions, a new tool, that is, the…
Empirical evidence shows that wealthy households have substantially higher saving rates and markedly lower marginal propensity to consume (MPC) than other groups. Existing theory cannot account for this pattern unless under restrictive…
This position paper argues that annotation disagreement in Natural Language Inference (NLI) is not mere noise but often reflects meaningful variation, especially when triggered by ambiguity in the premise or hypothesis. While underspecified…
The main purpose of this paper is to show that the converse of the known implication weakly action representable implies action accessible is false. In particular we show that both action accessibility, as well as the (at least formally…
Standard rational expectations models with an occasionally binding zero lower bound constraint either admit no solutions (incoherence) or multiple solutions (incompleteness). This paper shows that deviations from full-information rational…
Large language models achieve strong performance on many language tasks, yet it remains unclear whether they integrate world knowledge with syntactic structure in a human-like, structure-sensitive way during ambiguity resolution. We test…
We study an optimal liquidation problem under the ambiguity with respect to price impact parameters. Our main results show that the value function and the optimal trading strategy can be characterized by the solution to a semi-linear PDE…
We state the problem of inverse reinforcement learning in terms of preference elicitation, resulting in a principled (Bayesian) statistical formulation. This generalises previous work on Bayesian inverse reinforcement learning and allows us…