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We develop a nonparametric approach to identify and estimate consumer preferences and unobserved heterogeneity under nonlinear price schedules. Leveraging variation across multiple price schedules, we show that both the utility function and…

Econometrics · Economics 2026-04-29 Samuele Centorrino , Frédérique Fève , Jean-Pierre Florens

Reward models (RMs) are essential for aligning large language models (LLM) with human expectations. However, existing RMs struggle to capture the stochastic and uncertain nature of human preferences and fail to assess the reliability of…

Machine Learning · Computer Science 2025-02-13 Xingzhou Lou , Dong Yan , Wei Shen , Yuzi Yan , Jian Xie , Junge Zhang

Learning user preferences for products based on their past purchases or reviews is at the cornerstone of modern recommendation engines. One complication in this learning task is that some users are more likely to purchase products or review…

Information Retrieval · Computer Science 2023-03-08 Wanning Chen , Mohsen Bayati

This paper develops a novel characterization for random utility models (RUM), which turns out to be a dual representation of the characterization by Kitamura and Stoye (2018, ECMA). For a given family of budgets and its "patch"…

Theoretical Economics · Economics 2024-06-19 Nobuo Koida , Koji Shirai

The classical Merton investment problem predicts deterministic, state-dependent portfolio rules; however, laboratory and field evidence suggests that individuals often prefer randomized decisions leading to stochastic and noisy choices.…

Mathematical Finance · Quantitative Finance 2026-02-17 Min Dai , Yuchao Dong , Yanwei Jia , Xun Yu Zhou

We study consumption dependence in the context of random utility and repeated choice. We show that, in the presence of consumption dependence, the random utility model is a misspecified model of repeated rational choice. This…

Theoretical Economics · Economics 2025-10-01 Christopher Turansick

Evidence theory is widely used in decision-making and reasoning systems. In previous research, Transferable Belief Model (TBM) is a commonly used evidential decision making model, but TBM is a non-preference model. In order to better fit…

Artificial Intelligence · Computer Science 2024-03-12 Tianxiang Zhan , Zhen Li , Yong Deng

In many choice settings self-punishment affects individual taste, by inducing the decision maker (DM) to disregard some of the best options. In these circumstances the DM may not maximize her true preference, but some harmful distortion of…

Theoretical Economics · Economics 2026-03-20 Angelo Enrico Petralia

This paper provides nonparametric identification results for random coefficient distributions in perturbed utility models. We cover discrete and continuous choice models. We establish identification using variation in mean quantities, and…

Econometrics · Economics 2020-03-03 Roy Allen , John Rehbeck

Motivated by the successes of deep learning, we propose a class of neural network-based discrete choice models, called RUMnets, inspired by the random utility maximization (RUM) framework. This model formulates the agents' random utility…

Machine Learning · Computer Science 2023-07-21 Ali Aouad , Antoine Désir

We generalize the stochastic revealed preference methodology of McFadden and Richter (1990) for finite choice sets to settings with limited consideration. Our approach is nonparametric and requires partial choice set variation. We impose a…

Theoretical Economics · Economics 2022-05-19 Nail Kashaev , Victor H. Aguiar

In the implicit feedback recommendation, incorporating short-term preference into recommender systems has attracted increasing attention in recent years. However, unexpected behaviors in historical interactions like clicking some items by…

Artificial Intelligence · Computer Science 2021-12-22 Jie Chen , Lifen Jiang , Chunmei Ma , Huazhi Sun

When it comes to structural estimation of risk preferences from data on choices, random utility models have long been one of the standard research tools in economics. A recent literature has challenged these models, pointing out some…

General Economics · Economics 2024-09-04 Henk Keffert , Nikolaus Schweizer

Random utility theory models an agent's preferences on alternatives by drawing a real-valued score on each alternative (typically independently) from a parameterized distribution, and then ranking the alternatives according to scores. A…

Multiagent Systems · Computer Science 2012-11-13 Hossein Azari Soufiani , David C. Parkes , Lirong Xia

Determining consumer preferences and utility is a foundational challenge in economics. They are central in determining consumer behaviour through the utility-maximising consumer decision-making process. However, preferences and utilities…

Machine Learning · Computer Science 2025-03-18 Marta Grzeskiewicz

We bound features of counterfactual choices in the nonparametric random utility model of demand, i.e. if observable choices are repeated cross-sections and one allows for unrestricted, unobserved heterogeneity. In this setting, tight bounds…

Econometrics · Economics 2019-05-21 Yuichi Kitamura , Jörg Stoye

In this paper, we consider the problem of predicting survey response rates using a family of flexible and interpretable nonparametric models. The study is motivated by the US Census Bureau's well-known ROAM application, which uses a linear…

Machine Learning · Statistics 2025-04-08 Shibal Ibrahim , Peter Radchenko , Emanuel Ben-David , Rahul Mazumder

We introduce normalized nonnegative models (NNM) for explorative data analysis. NNMs are partial convexifications of models from probability theory. We demonstrate their value at the example of item recommendation. We show that NNM-based…

Machine Learning · Computer Science 2015-11-17 Cyril Stark

This paper studies robust forward investment and consumption preferences and optimal strategies for a risk-averse and ambiguity-averse agent in an incomplete financial market with drift and volatility uncertainties. We focus on non-zero…

Portfolio Management · Quantitative Finance 2025-09-17 Wing Fung Chong , Gechun Liang

The well-studied problem of statistical rank aggregation has been applied to comparing sports teams, information retrieval, and most recently to data generated by human judgment. Such human-generated rankings may be substantially different…

Information Retrieval · Computer Science 2014-11-05 Andrew Mao , Hossein Azari Soufiani , Yiling Chen , David C. Parkes