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Aggregating risks from multiple sources can be complex and demanding, and decision makers usually adopt heuristics to simplify the evaluation process. This paper axiomatizes two closed related and yet different heuristics, narrow bracketing…

Theoretical Economics · Economics 2021-08-30 Mu Zhang

In random expected utility (Gul and Pesendorfer, 2006), the distribution of preferences is uniquely recoverable from random choice. This paper shows through two examples that such uniqueness fails in general if risk preferences are random…

Theoretical Economics · Economics 2020-09-10 Yi-Hsuan Lin

The Random Utility Model (RUM) is the leading model to represent the aggregate choices of a heterogeneous population of preference maximizers. We show that if (and only if) preferences are sufficiently uncorrelated, RUM choices can also be…

Theoretical Economics · Economics 2025-05-29 Daniele Caliari , Henrik Petri

This paper establishes a general equivalence between discrete choice and rational inattention models. Matejka and McKay (2015, AER) showed that when information costs are modelled using the Shannon entropy function, the resulting choice…

Econometrics · Economics 2017-09-27 Mogens Fosgerau , Emerson Melo , Andre de Palma , Matthew Shum

We introduce and analyze the problem of the compilation of decision models from a decision-theoretic perspective. The techniques described allow us to evaluate various configurations of compiled knowledge given the nature of evidential…

Artificial Intelligence · Computer Science 2013-04-08 David Heckerman , John S. Breese , Eric J. Horvitz

We present a versatile automated theorem proving framework capable of automated discovery, simplification and proofs of inner and outer bounds in network information theory, deduction of properties of information-theoretic quantities (e.g.…

Information Theory · Computer Science 2022-07-13 Cheuk Ting Li

Models allowing for random heterogeneity, such as mixed logit and latent class, are generally observed to obtain superior model fit and yield detailed insights into unobserved preference heterogeneity. Using theoretical arguments and two…

Econometrics · Economics 2025-10-13 Stephane Hess , Sander van Cranenburgh

When a collective decision maker presents a menu of uncertain prospects to her group members, each member's choice depends on their predictions about payoff-relevant states. In reality, however, these members hold different predictions;…

Theoretical Economics · Economics 2025-04-08 Kensei Nakamura , Shohei Yanagita

The adoption of automated, data-driven decision making in an ever expanding range of applications has raised concerns about its potential unfairness towards certain social groups. In this context, a number of recent studies have focused on…

In the problem of selecting variables in a multivariate linear regression model, we derive new Bayesian information criteria based on a prior mixing a smooth distribution and a delta distribution. Each of them can be interpreted as a fusion…

Statistics Theory · Mathematics 2022-09-29 Haruki Kono , Tatsuya Kubokawa

We revisit the role of instrumental value as a driver of adaptive behavior. In active inference, instrumental or extrinsic value is quantified by the information-theoretic surprisal of a set of observations measuring the extent to which…

Neurons and Cognition · Quantitative Biology 2020-10-14 Alvaro Ovalle , Simon M. Lucas

Teaching requires distilling a rich category distribution into a small set of informative exemplars. Although prior work shows that humans consider both representativeness and diversity when teaching, the computational principles underlying…

Machine Learning · Computer Science 2026-02-04 Fanxiao Wani Qiu , Oscar Leong , Alexander LaTourrette

This paper investigates the problem of finding a preference relation on a set of acts from the knowledge of an ordering on events (subsets of states of the world) describing the decision-maker (DM)s uncertainty and an ordering of…

Artificial Intelligence · Computer Science 2013-02-08 Didier Dubois , Helene Fargier , Henri Prade

Threshold selection is a fundamental problem in any threshold-based extreme value analysis. While models are asymptotically motivated, selecting an appropriate threshold for finite samples is difficult and highly subjective through standard…

Methodology · Statistics 2024-10-30 Conor Murphy , Jonathan A. Tawn , Zak Varty

It is challenging to quantify numerical preferences for different objectives in a multi-objective decision-making problem. However, the demonstrations of a user are often accessible. We propose an algorithm to infer linear preference…

Artificial Intelligence · Computer Science 2023-04-28 Junlin Lu

Experimental work regularly finds that individual choices are not deterministically rationalized by well-defined preferences. Nonetheless, recent work shows that data collected from many individuals can be stochastically rationalized by a…

Theoretical Economics · Economics 2021-10-22 Changkuk Im , John Rehbeck

Designing models that are both expressive and preserve known invariances of tasks is an increasingly hard problem. Existing solutions tradeoff invariance for computational or memory resources. In this work, we show how to leverage…

Machine Learning · Computer Science 2023-09-29 Leonardo Cotta , Gal Yehuda , Assaf Schuster , Chris J. Maddison

The inferential models (IM) framework provides prior-free, frequency-calibrated, posterior probabilistic inference. The key is the use of random sets to predict unobservable auxiliary variables connected to the observable data and unknown…

Statistics Theory · Mathematics 2016-01-26 Ryan Martin , Chuanhai Liu

We consider an agent with a rationally inattentive preference over menus of acts, as in de Oliveira et al (2017). We show that two axioms, Independence of Irrelevant Alternatives and Ignorance Equivalence, are necessary and sufficient for…

Theoretical Economics · Economics 2026-02-18 Henrique de Oliveira , Jeffrey Mensch

In approval-based multiwinner voting, voters express approval preferences over a set of candidates, and the goal is to return a winning committee. This model captures a broad range of subset selection problems under preferences. Prior work…

Computer Science and Game Theory · Computer Science 2026-04-28 Niclas Boehmer , Luca Kreisel , Jannik Peters