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This paper provides a framework to quantify the sensitivity associated with behavioral models based on Cumulative Prospect Theory (CPT). These are used to design dynamic pricing strategies aimed at maximizing performance metrics of the…

Optimization and Control · Mathematics 2021-04-20 Vineet Jagadeesan Nair , Yue Guan , Anuradha M. Annaswamy , H. Eric Tseng , Baljeet Singh

Cumulative Prospect Theory (CPT) is a modeling tool widely used in behavioral economics and cognitive psychology that captures subjective decision making of individuals under risk or uncertainty. In this paper, we propose a dynamic pricing…

Computers and Society · Computer Science 2019-12-02 Yue Guan , Anuradha M. Annaswamy , H. Eric Tseng

Classical multi-agent reinforcement learning (MARL) assumes risk neutrality and complete objectivity for agents. However, in settings where agents need to consider or model human economic or social preferences, a notion of risk must be…

Machine Learning · Computer Science 2024-02-09 Hafez Ghaemi , Hamed Kebriaei , Alireza Ramezani Moghaddam , Majid Nili Ahamdabadi

Recent work has shown how information theory extends conventional full-rationality game theory to allow bounded rational agents. The associated mathematical framework can be used to solve constrained optimization problems. This is done by…

Neural and Evolutionary Computing · Computer Science 2008-11-07 William Macready , David Wolpert

This paper proposes a novel numerical method for solving the problem of decision making under cumulative prospect theory (CPT), where the goal is to maximize utility subject to practical constraints, assuming only finite realizations of the…

Optimization and Control · Mathematics 2024-04-29 Xiangyu Cui , Rujun Jiang , Yun Shi , Rufeng Xiao , Yifan Yan

In cyber-physical convergence scenarios information flows seamlessly between the physical and the cyber worlds. Here, users' mobile devices represent a natural bridge through which users process acquired information and perform actions. The…

Networking and Internet Architecture · Computer Science 2022-06-06 Matteo Mordacchini , Lorenzo Valerio , Marco Conti , Andrea Passarella

In this paper, we develop a class of decentralized algorithms for solving a convex resource allocation problem in a network of $n$ agents, where the agent objectives are decoupled while the resource constraints are coupled. The agents…

Optimization and Control · Mathematics 2018-12-18 Angelia Nedić , Alex Olshevsky , Wei Shi

Large model has emerged as a key enabler for the popularity of future networked intelligent applications. However, the surge of data traffic brought by intelligent applications puts pressure on the resource utilization and energy…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-01-28 Haijun Zhang , Jiaxin Ni , Zijun Wu , Xiangnan Liu , V. C. M. Leung

We study optimal investment problems under the framework of cumulative prospect theory (CPT). A CPT investor makes investment decisions in a single-period financial market with transaction costs. The objective is to seek the optimal…

Portfolio Management · Quantitative Finance 2016-11-15 Bin Zou , Rudi Zagst

We consider a convex unconstrained optimization problem that arises in a network of agents whose goal is to cooperatively optimize the sum of the individual agent objective functions through local computations and communications. For this…

Optimization and Control · Mathematics 2008-03-11 Angelia Nedić , Alex Olshevsky , Asuman Ozdaglar , John N. Tsitsiklis

Motivated by recent development in networking and parallel data-processing, we consider a distributed and localized finite-sum (or fixed-sum) allocation technique to solve resource-constrained convex optimization problems over multi-agent…

Systems and Control · Electrical Eng. & Systems 2022-03-29 Mohammadreza Doostmohammadian , Maria Vrakopoulou , Alireza Aghasi , Themistoklis Charalambous

By transmitting task-related information only, semantic communications yield significant performance gains over conventional communications. However, the lack of mature semantic theory about semantic information quantification and…

Information Theory · Computer Science 2024-04-09 Lei Yan , Zhijin Qin , Chunfeng Li , Rui Zhang , Yongzhao Li , Xiaoming Tao

Semantic communication transmits the extracted features of information rather than raw data, significantly reducing redundancy, which is crucial for addressing spectrum and energy challenges in 6G networks. In this paper, we introduce…

Machine Learning · Computer Science 2025-05-27 Wenjun Zhang , Qiong Wu , Pingyi Fan , Kezhi Wang , Nan Cheng , Wen Chen , Khaled B. Letaief

Public scarce resource allocation plays a crucial role in economics as it directly influences the efficiency and equity in society. Traditional studies including theoretical model-based, empirical study-based and simulation-based methods…

Computation and Language · Computer Science 2024-10-21 Jiarui Ji , Yang Li , Hongtao Liu , Zhicheng Du , Zhewei Wei , Weiran Shen , Qi Qi , Yankai Lin

The distributed non-smooth resource allocation problem over multi-agent networks is studied in this paper, where each agent is subject to globally coupled network resource constraints and local feasibility constraints described in terms of…

Optimization and Control · Mathematics 2022-03-11 Xiaohong Nian , Fan Li , Dongxin Liu

We derive a policy gradient theorem for Cumulative Prospect Theory (CPT) objectives in finite-horizon Reinforcement Learning (RL), generalizing the standard policy gradient theorem and encompassing distortion-based risk objectives as…

Machine Learning · Computer Science 2026-02-18 Olivier Lepel , Anas Barakat

Semantic communications (SC) is an emerging communication paradigm in which wireless devices can send only relevant information from a source of data while relying on computing resources to regenerate missing data points. However, the…

Information Theory · Computer Science 2024-09-30 Christo Kurisummoottil Thomas , Walid Saad

The most commonly accepted model for investors' preferences is expected utility theory. More recently, other theories have emerged and pose new challenges to mathematics. The present paper treats preferences of cumulative prospect theory…

Portfolio Management · Quantitative Finance 2016-08-07 Miklós Rásonyi , José Gregorio Rodríguez-Villarreal

Lotteries are a prevalent form of gambling between a seller and buyers. Designing a lottery requires a model of how buyers make decisions when confronted with uncertain outcomes. Cumulative prospect theory (CPT) is a descriptive model that…

Computer Science and Game Theory · Computer Science 2026-05-20 Shunta Akiyama , Mitsuaki Obara , Yasushi Kawase

This paper addresses the task of joint multi-agent perception and planning, especially as it relates to the real-world challenge of collision-free navigation for connected self-driving vehicles. For this task, several communication-enabled…

Robotics · Computer Science 2023-03-13 Nathaniel Moore Glaser , Zsolt Kira