Related papers: Rationalizability, Cost-Rationalizability, and Afr…
This paper takes a fresh look at the economic theory that is motivation for pricing models, such as critical peak pricing (CPP), or surge pricing, and the demand response models advocated by policy makers and in the power systems…
The sum-utility maximization problem is known to be important in the energy systems literature. The conventional assumption to address this problem is that the utility is concave. But for some key applications, such an assumption is not…
Affordances, a foundational concept in human-computer interaction and design, have traditionally been explained by direct-perception theories, which assume that individuals perceive action possibilities directly from the environment.…
This paper studies whether rationality can be computed. Rationality is defined as the use of complete information, which is processed with a perfect biological or physical brain, in an optimized fashion. To compute rationality one needs to…
Approximate Competitive Equilibrium from Equal Incomes (A-CEEI) is an equilibrium-based solution concept for fair division of discrete items to agents with combinatorial demands. In theory, it is known that in asymptotically large markets:…
Many fairness criteria constrain the policy or choice of predictors, which can have unwanted consequences, in particular, when optimizing the policy under such constraints. Here, we advocate to instead focus on the utility function the…
The concept of efficiency plays a prominent role in the formal solution of decision problems that involve incomparable alternatives. This paper develops necessary and sufficient conditions for the efficient points in a sum of sets of…
Motivated by the analysis of a general optimal portfolio selection problem, which encompasses as special cases an optimal consumption and an optimal debt-arrangement problem, we are concerned with the questions of how a personality trait…
In markets with budget-constrained buyers, competitive equilibria need not be efficient in the utilitarian sense, or maximise the seller's revenue. We consider a setting with multiple divisible goods. Competitive equilibrium outcomes, and…
This study modifies the Russell graph measure of efficiency to find the closest target from the assessed decision-making unit to the efficient frontier of an empirical production possibility set using an extended facet approach. The closest…
This work presents an asset pricing model that under rational expectation equilibrium perspective shows how, depending on risk aversion and noise volatility, a risky-asset has one equilibrium price that differs in term of efficiency: an…
Correlated equilibria enable a coordinator to influence the self-interested agents by recommending actions that no player has an incentive to deviate from. However, the effectiveness of this mechanism relies on accurate knowledge of the…
The solution here proposed can be used to conduct economic analysis in randomized clinical trials. It is based on a statistical approach and aims at calculating a revised version of the incremental costeffective ratio (ICER) in order to…
Predicting the execution time of queries is an important problem with applications in scheduling, service level agreements and error detection. During query planning, a cost is associated with the chosen execution plan and used to rank…
Active inference (AIF) unifies exploration and exploitation by minimizing the Expected Free Energy (EFE), balancing epistemic value (information gain) and pragmatic value (task performance) through a curiosity coefficient. Yet it has been…
A central decision maker (CDM), who seeks an efficient allocation of scarce resources among a finite number of players, often has to incorporate fairness criteria to avoid unfair outcomes. Indeed, the Price of Fairness (POF), a term coined…
Resource adequacy studies typically use standard metrics such as Loss of Load Expectation and Expected Energy Unserved to quantify the risk of supply shortfalls. This paper critiques present approaches to adequacy assessment and capacity…
We study the design of Bayesian incentive compatible mechanisms in single parameter domains, for the objective of optimizing social efficiency as measured by social cost. In the problems we consider, a group of participants compete to…
In AAMAS 2014, Bouveret and Lemaitre (2014) presented a hierarchy of fairness concepts for allocation of indivisible objects. Among them CEEI (Competitive Equilibrium with Equal Incomes) was the strongest. In this note, we settle the…
The aim of this article is to define a notion of cardinal utility function called measurable utility and to define it on a connected and separable subset of a weakly ordered topological space. The definition is equivalent to the ones given…