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I formulate and characterize the following two-stage choice behavior. The decision maker is endowed with two preferences. She shortlists all maximal alternatives according to the first preference. If the first preference is decisive, in the…

Theoretical Economics · Economics 2020-10-29 Mario Vazquez Corte

Analyzing decision problems under uncertainty commonly relies on idealizing assumptions about the describability of the world, with the most prominent examples being the closed world and the small world assumption. Most assumptions are…

Methodology · Statistics 2025-12-08 Christoph Jansen , Georg Schollmeyer , Thomas Augustin , Julian Rodemann

Decision making in modern stochastic systems, including e-commerce platforms, financial markets and healthcare systems, has evolved into a multifaceted process that combines information acquisition and adaptive information sources. This…

Optimization and Control · Mathematics 2026-01-07 Renyuan Xu , Thaleia Zariphopoulou , Luhao Zhang

This paper studies how insurers can chose which claims to investigate for fraud. Given a prediction model, typically only claims with the highest predicted propability of being fraudulent are investigated. We argue that this can lead to…

Machine Learning · Statistics 2025-09-24 Christos Revelas , Otilia Boldea , Bas J. M. Werker

Decision making is the cognitive process of selecting a course of action among multiple alternatives. As the decision maker belongs to a complex microenvironment (which contains multiple decision makers), has to make a decision where…

Physics and Society · Physics 2024-06-25 Manish Gupta , Arnab Barua , Haralampos Hatzikirou

Given data on the choices made by consumers for different offer sets, a key challenge is to develop parsimonious models that describe and predict consumer choice behavior while being amenable to prescriptive tasks such as pricing and…

Machine Learning · Statistics 2025-04-15 Yanqiu Ruan , Xiaobo Li , Karthyek Murthy , Karthik Natarajan

Unaided human decision making appears to systematically violate consistency constraints imposed by normative theories; these biases in turn appear to justify the application of formal decision-analytic models. It is argued that both claims…

Artificial Intelligence · Computer Science 2013-04-08 Marvin S. Cohen

Two main procedures characterize the way in which social actors evaluate the qualities of the options in decision-making processes: they either seek to evaluate their intrinsic qualities (individual learners), or they rely on the opinion of…

Physics and Society · Physics 2024-07-31 Arkadiusz Jędrzejewski , Laura Hernández

A broad range of on-line behaviors are mediated by interfaces in which people make choices among sets of options. A rich and growing line of work in the behavioral sciences indicate that human choices follow not only from the utility of…

Data Structures and Algorithms · Computer Science 2017-05-17 Jon Kleinberg , Sendhil Mullainathan , Johan Ugander

Our goal is to develop a partial ordering method for comparing stochastic choice functions on the basis of their individual rationality. To this end, we assign to any stochastic choice function a one-parameter class of deterministic choice…

Theoretical Economics · Economics 2023-12-13 Efe A. Ok , Gerelt Tserenjigmid

Aggregated data in real world recommender applications often feature fat-tailed distributions of the number of times individual items have been rated or favored. We propose a model to simulate such data. The model is mainly based on social…

Physics and Society · Physics 2012-08-14 Marcel Blattner , Matus Medo

This paper considers linear model selection when the response is vector-valued and the predictors are randomly observed. We propose a new approach that decouples statistical inference from the selection step in a "post-inference model…

Methodology · Statistics 2016-06-07 David Puelz , P. Richard Hahn , Carlos Carvalho

A researcher observes a finite sequence of choices made by multiple agents in a binary-state environment. Agents maximize expected utilities that depend on their chosen alternative and the unknown underlying state. Agents learn about the…

Theoretical Economics · Economics 2021-05-11 Rahul Deb , Ludovic Renou

We provide a formal, simple and intuitive theory of rational decision making including sequential decisions that affect the environment. The theory has a geometric flavor, which makes the arguments easy to visualize and understand. Our…

Machine Learning · Computer Science 2012-02-10 Peter Sunehag , Marcus Hutter

Model selection criteria are one of the most important tools in statistics. Proofs showing a model selection criterion is asymptotically optimal are tailored to the type of model (linear regression, quantile regression, penalized…

Statistics Theory · Mathematics 2025-10-17 Amaze Lusompa

Large language models increasingly rely on explicit reasoning chains and can produce multiple plausible responses for a given context. We study the candidate sampler that produces the set of plausible responses contrasting the ancestral…

Computation and Language · Computer Science 2025-09-23 Sergey Troshin , Irina Saparina , Antske Fokkens , Vlad Niculae

An approach is presented treating decision theory as a probabilistic theory based on quantum techniques. Accurate definitions are given and thorough analysis is accomplished for the quantum probabilities describing the choice between…

Artificial Intelligence · Computer Science 2022-06-06 V. I. Yukalov

Ordinal user-provided ratings across multiple items are frequently encountered in both scientific and commercial applications. Whilst recommender systems are known to do well on these type of data from a predictive point of view, their…

Methodology · Statistics 2025-03-05 Sjoerd Hermes

In this paper, we introduce a formalism for single-agent decision making that is based on Dynamic Argumentation Frameworks. The formalism can be used to justify a choice, which is based on the current situation the agent is involved. Taking…

Artificial Intelligence · Computer Science 2019-03-06 Edgardo Ferretti , Luciano H. Tamargo , Alejandro J. Garcia , Marcelo L. Errecalde , Guillermo R. Simari

The dynamics of simple two-alternative forced-choice (2AFC) decisions are well-modeled by a class of random walk models (e.g. Laming, 1968; Ratcliff, 1978; Usher & McClelland, 2001; Bogacz et al., 2006). However, in real-life, even simple…

Neurons and Cognition · Quantitative Biology 2026-03-31 Michael Shvartsman , Vaibhav Srivastava , Narayanan Sundaram , Jonathan D. Cohen