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Related papers: Complexity and Misspecification

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We use decision theory to confront uncertainty that is sufficiently broad to incorporate "models as approximations." We presume the existence of a featured collection of what we call "structured models" that have explicit substantive…

Theoretical Economics · Economics 2022-08-22 Simone Cerreia-Vioglio , Lars Peter Hansen , Fabio Maccheroni , Massimo Marinacci

Economic choices are often stochastic: the same person may make a different choice when facing the same alternatives repeatedly. Standard models assume that the degree of randomness reflects the size of utility differences, but choice…

Theoretical Economics · Economics 2026-05-05 Shuhua Si

Decisions based partly or solely on predictions from probabilistic models may be sensitive to model misspecification. Statisticians are taught from an early stage that "all models are wrong", but little formal guidance exists on how to…

Methodology · Statistics 2015-03-09 James Watson , Chris Holmes

Estimating uncertainty of machine learning models is essential to assess the quality of the predictions that these models provide. However, there are several factors that influence the quality of uncertainty estimates, one of which is the…

Machine Learning · Computer Science 2022-11-03 Yuko Kato , David M. J. Tax , Marco Loog

Toward explaining the persistence of biased inferences, we propose a framework to evaluate competing (mis)specifications in strategic settings. Agents with heterogeneous (mis)specifications coexist and draw Bayesian inferences about their…

Theoretical Economics · Economics 2023-02-14 Kevin He , Jonathan Libgober

Mathematical models are routinely applied to interpret biological data, with common goals that include both prediction and parameter estimation. A challenge in mathematical biology, in particular, is that models are often complex and…

Methodology · Statistics 2025-11-18 Alexander P Browning , Jennifer A Flegg , Ryan J Murphy

We study a linear contextual optimization problem where a decision maker has access to historical data and contextual features to learn a cost prediction model aimed at minimizing decision error. We adopt the predict-then-optimize framework…

Optimization and Control · Mathematics 2025-04-09 Omar Bennouna , Jiawei Zhang , Saurabh Amin , Asuman Ozdaglar

Complexity of the problem of choosing among uncertain acts is a salient feature of many of the environments in which departures from expected utility theory are observed. I propose and axiomatize a model of choice under uncertainty in which…

Theoretical Economics · Economics 2022-10-17 Quitzé Valenzuela-Stookey

This paper studies the design of mechanisms that are robust to misspecification. We introduce a novel notion of robustness that connects a variety of disparate approaches and study its implications in a wide class of mechanism design…

Theoretical Economics · Economics 2021-08-31 Giuseppe Lopomo , Luca Rigotti , Chris Shannon

Trust is a crucial factor affecting the adoption of machine learning (ML) models. Qualitative studies have revealed that end-users, particularly in the medical domain, need models that can express their uncertainty in decision-making…

Machine Learning · Computer Science 2023-04-21 Andrew Houston , Georgina Cosma

This chapter develops a unified framework for studying misspecified learning situations in which agents optimize and update beliefs within an incorrect model of their environment. We review the statistical foundations of learning from…

Theoretical Economics · Economics 2026-01-16 Ignacio Esponda , Demian Pouzo

This work introduces a formulation of model predictive control (MPC) which adaptively reasons about the complexity of the model based on the task while maintaining feasibility and stability guarantees. Existing MPC implementations often…

Robotics · Computer Science 2024-11-07 Joseph Norby , Ardalan Tajbakhsh , Yanhao Yang , Aaron M. Johnson

Although neural networks are powerful function approximators, the underlying modelling assumptions ultimately define the likelihood and thus the hypothesis class they are parameterizing. In classification, these assumptions are minimal as…

Machine Learning · Computer Science 2021-11-24 Maria R. Cervera , Rafael Dätwyler , Francesco D'Angelo , Hamza Keurti , Benjamin F. Grewe , Christian Henning

The efficacy of robust optimization spans a variety of settings with uncertainties bounded in predetermined sets. In many applications, uncertainties are affected by decisions and cannot be modeled with current frameworks. This paper takes…

Optimization and Control · Mathematics 2018-03-29 Omid Nohadani , Kartikey Sharma

Individuals use models to guide decisions, but many models are wrong. This paper studies which misspecified models are likely to persist when individuals also entertain alternative models. Consider an agent who uses her model to learn the…

Theoretical Economics · Economics 2023-08-22 Cuimin Ba

Neural networks often exhibit simplicity bias, favoring simpler features over more complex ones, even when both are equally predictive. We introduce a novel method called imbalanced label coupling to explore and extend this simplicity bias…

Machine Learning · Computer Science 2024-10-23 Zhehang Du

Using theory and experiments, this paper shows that the difficulty of making tradeoffs offers a parsimonious explanation for a wide range of behavioral phenomena. We develop a model of imprecise comparisons applicable to multiattribute,…

General Economics · Economics 2026-04-01 Cassidy Shubatt , Jeffrey Yang

This work addresses the challenge of providing consistent explanations for predictive models in the presence of model indeterminacy, which arises due to the existence of multiple (nearly) equally well-performing models for a given dataset…

Machine Learning · Computer Science 2023-06-14 Dan Ley , Leonard Tang , Matthew Nazari , Hongjin Lin , Suraj Srinivas , Himabindu Lakkaraju

Bayesian variable selection often assumes normality, but the effects of model misspecification are not sufficiently understood. There are sound reasons behind this assumption, particularly for large $p$: ease of interpretation, analytical…

Methodology · Statistics 2017-08-07 David Rossell , Francisco J. Rubio

Criticality has been proposed as a mechanism for the emergence of complexity, life, and computation, as it exhibits a balance between robustness and adaptability. In classic models of complex systems where structure and dynamics are…

Statistical Mechanics · Physics 2026-02-04 Fernanda Sánchez-Puig , Octavio Zapata , Omar K. Pineda , Gerardo Iñiguez , Carlos Gershenson
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