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We develop a framework for interacting with uncertain environments in reinforcement learning (RL) by leveraging preferences in the form of utility functions. We claim that there is value in considering different risk measures during…

Machine Learning · Computer Science 2021-02-23 Hannes Eriksson , Christos Dimitrakakis

Two firms are engaged in a competitive prediction task. Each firm has two sources of data -- labeled historical data and unlabeled inference-time data -- and uses the former to derive a prediction model, and the latter to make predictions…

Theoretical Economics · Economics 2024-03-27 Yotam Gafni , Ronen Gradwohl , Moshe Tennenholtz

We propose a generalization of the classical notion of the $V@R_{\lambda}$ that takes into account not only the probability of the losses, but the balance between such probability and the amount of the loss. This is obtained by defining a…

Risk Management · Quantitative Finance 2012-09-07 Marco Frittelli , Marco Maggis , Ilaria Peri

This paper studies the problem of distributed classification with a network of heterogeneous agents. The agents seek to jointly identify the underlying target class that best describes a sequence of observations. The problem is first…

Artificial Intelligence · Computer Science 2020-11-24 James Z. Hare , Cesar A. Uribe , Lance Kaplan , Ali Jadbabaie

Development of resistance limits transferability of most anticancer therapies into curative treatment and understanding mechanisms beyond it remains a big challenge. Many high resolution experimental observations show enormous intratumor…

Populations and Evolution · Quantitative Biology 2013-07-03 B. Brutovsky , D. Horvath

This paper attempts to find a relationship between agents' risk aversion and inequality of incomes. Specifically, a model is proposed for the evolution in time of surplus/deficit distribution, and the long-time distributions are…

Economics · Quantitative Finance 2016-05-12 Eleonora Perversi , Eugenio Regazzini

We develop a unified model in which AI adoption in financial markets generates systemic risk through three mutually reinforcing channels: performative prediction, algorithmic herding, and cognitive dependency. Within an extended rational…

Computational Finance · Quantitative Finance 2026-04-07 Shuchen Meng , Xupeng Chen

With an increasing number of prospective geological CO$_2$ storage projects and potential pressure communication between different projects, risk sharing under uncertain geological conditions are relevant to many project operators. In this…

Physics and Society · Physics 2026-05-05 Per Pettersson , Svenn Tveit , Sarah Gasda

Online learning has traditionally focused on the expected rewards. In this paper, a risk-averse online learning problem under the performance measure of the mean-variance of the rewards is studied. Both the bandit and full information…

Machine Learning · Statistics 2019-03-15 Sattar Vakili , Alexis Boukouvalas , Qing Zhao

Meta-analysis can be formulated as combining $p$-values across studies into a joint $p$-value function, from which point estimates and confidence intervals can be derived. We extend the meta-analytic estimation framework based on combined…

Methodology · Statistics 2025-10-21 David Kronthaler , Leonhard Held

In this paper we present a study about minima among random variables, about the context of voting theory, and about paradoxes related with such topics. In the field of reliability theory, the term load-sharing model is commonly used to…

Probability · Mathematics 2021-11-16 Emilio De Santis , Fabio Spizzichino

Motivated by the importance of individual differences in risk perception and behavior change in people's responses to infectious disease outbreaks (particularly the ongoing COVID-19 pandemic), we propose a heterogeneous…

Physics and Society · Physics 2020-11-04 Yang Ye , Qingpeng Zhang , Zhongyuan Ruan , Zhidong Cao , Qi Xuan , Daniel Dajun Zeng

In many applications, data can be heterogeneous in the sense of spanning latent groups with different underlying distributions. When predictive models are applied to such data the heterogeneity can affect both predictive performance and…

Machine Learning · Statistics 2022-05-04 Thomas Lartigue , Sach Mukherjee

We propose to interpret distribution model risk as sensitivity of expected loss to changes in the risk factor distribution, and to measure the distribution model risk of a portfolio by the maximum expected loss over a set of plausible…

Risk Management · Quantitative Finance 2013-01-22 Thomas Breuer , Imre Csiszar

This paper concerns robust inference on average treatment effects following model selection. In the selection on observables framework, we show how to construct confidence intervals based on a doubly-robust estimator that are robust to…

Statistics Theory · Mathematics 2018-04-13 Max H. Farrell

We study investment and insurance demand decisions for an agent in a theoretical continuous-time expected utility maximization model that combines risky assets with an (exogenous) insurable background risk. This risk takes the form of a…

Mathematical Finance · Quantitative Finance 2023-03-09 Hugo E. Ramirez , Rafael Serrano

We relate models based on costs of switching beliefs (e.g. due to inattention) to hypothesis tests. Specifically, for an inference problem with a penalty for mistakes and for switching the inferred value, a band of inaction is optimal. We…

General Economics · Economics 2018-08-30 Samuel N. Cohen , Timo Henckel , Gordon D. Menzies , Johannes Muhle-Karbe , Daniel J. Zizzo

People increasingly seek advice online from both human peers and large language model (LLM)-based chatbots. Such advice rarely involves identifying a single correct answer; instead, it typically requires navigating trade-offs among…

Computers and Society · Computer Science 2026-02-05 Zhiyi Chen , Eun Cheol Choi , Yingjia Luo , Xinyi Wang , Yulei Xiao , Aizi Yang , Luca Luceri

This paper considers inference in a linear instrumental variable regression model with many potentially weak instruments, in the presence of heterogeneous treatment effects. I first show that existing test procedures, including those that…

Econometrics · Economics 2025-04-24 Luther Yap

This paper develops a decomposition of standard Risk Contribution (RC) into two economically interpretable components: inherent risk and correlation risk. Using a leave-one-out representation, each position's RC separates into a term…

Risk Management · Quantitative Finance 2026-04-14 Nolan Alexander , Frank Fabozzi