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Related papers: The Algebra of Utility Inference

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Expected Utility: Algebraic Expected Utility In this paper, we provide two axiomatizations of algebraic expected utility, which is a particular generalized expected utility, in a von Neumann-Morgenstern setting, i.e. uncertainty…

Artificial Intelligence · Computer Science 2012-07-02 Paul Weng

The probability axioms by R. T. Cox can be regarded as the modern foundations of Bayesian inference, the idea of assigning degrees of belief to logical propositions in a manner consistent with Boolean logic. In this work it is shown that…

Probability · Mathematics 2016-07-28 Sergio Davis

Recent literature in the last Maximum Entropy workshop introduced an analogy between cumulative probability distributions and normalized utility functions. Based on this analogy, a utility density function can de defined as the derivative…

Artificial Intelligence · Computer Science 2009-11-10 Ali E. Abbas

Instead of testing for unanimous agreement, I propose learning how broad of a consensus favors one distribution over another (of earnings, productivity, asset returns, test scores, etc.). Specifically, given a sample from each of two…

Econometrics · Economics 2024-08-27 David M. Kaplan

The effect of Richard T. Cox's contribution to probability theory was to generalize Boolean implication among logical statements to degrees of implication, which are manipulated using rules derived from consistency with Boolean algebra.…

Data Analysis, Statistics and Probability · Physics 2009-11-10 Kevin H. Knuth

We study how to infer new choices from previous choices in a conservative manner. To make such inferences, we use the theory of choice functions: a unifying mathematical framework for conservative decision making that allows one to impose…

Artificial Intelligence · Computer Science 2020-07-16 Arne Decadt , Jasper De Bock , Gert de Cooman

A recent line of work, starting with Beigman and Vohra (2006) and Zadimoghaddam and Roth (2012), has addressed the problem of {\em learning} a utility function from revealed preference data. The goal here is to make use of past data…

Computer Science and Game Theory · Computer Science 2014-07-31 Maria-Florina Balcan , Amit Daniely , Ruta Mehta , Ruth Urner , Vijay V. Vazirani

We present a necessary and sufficient condition for Alt's system to be represented by a continuous utility function. Moreover, we present a necessary and sufficient condition for this utility function to be concave. The latter condition can…

Theoretical Economics · Economics 2023-02-15 Yuhki Hosoya

Approaches for estimating preferences from human annotated data typically involves inducing a distribution over a ranked list of choices such as the Plackett-Luce model. Indeed, modern AI alignment tools such as Reward Modelling and Direct…

Machine Learning · Statistics 2025-08-20 Chirag Nagpal

Standard decision theory seeks conditions under which a preference relation can be compressed into a single real-valued function. However, when preferences are incomplete or intransitive, a single function fails to capture the agent's…

Theoretical Economics · Economics 2026-02-05 Safal Raman Aryal

In the 1940's, a physicist named Cox provided the first formal justification for the axioms of probability based on the subjective or Bayesian interpretation. He showed that if a measure of belief satisfies several fundamental properties,…

Artificial Intelligence · Computer Science 2013-04-12 David Heckerman

We advance a general theory of coherent preference that surrenders restrictions embodied in orthodox doctrine. This theory enjoys the property that any preference system admits extension to a complete system of preferences, provided it…

Probability · Mathematics 2025-08-04 Arthur Paul Pedersen , Samuel Allen Alexander

Ranking entities such as algorithms, devices, methods, or models based on their performances, while accounting for application-specific preferences, is a challenge. To address this challenge, we establish the foundations of a universal…

Machine Learning · Computer Science 2026-03-25 Sébastien Piérard , Anaïs Halin , Anthony Cioppa , Adrien Deliège , Marc Van Droogenbroeck

Choice functions constitute a simple, direct and very general mathematical framework for modelling choice under uncertainty. In particular, they are able to represent the set-valued choices that typically arise from applying decision rules…

Artificial Intelligence · Computer Science 2018-06-05 Jasper De Bock , Gert de Cooman

A family of models of individual discrete choice are constructed by means of statistical averaging of choices made by a subject in a reinforcement learning process, where the subject has short, k-term memory span. The choice probabilities…

Econometrics · Economics 2019-08-20 Misha Perepelitsa

Borgs et al. [2016] investigated essential requirements for communities in preference networks. They defined six axioms on community functions, i.e., community detection rules. Though having elegant properties, the practicality of this…

Social and Information Networks · Computer Science 2016-12-16 Gang Zeng , Yuyi Wang , Juhua Pu , Xingwu Liu , Xiaoming Sun , Jialin Zhang

The maximum entropy principle can be used to assign utility values when only partial information is available about the decision maker's preferences. In order to obtain such utility values it is necessary to establish an analogy between…

Statistical Finance · Quantitative Finance 2009-11-13 Andreia Dionisio , A. Heitor Reis

Reliability (survival analysis, to biostatisticians) is a key ingredient for mak- ing decisions that mitigate the risk of failure. The other key ingredient is utility. A decision theoretic framework harnesses the two, but to invoke this…

Methodology · Statistics 2009-07-24 Nozer D. Singpurwalla

We show that the main results of the expected utility and dual utility theories can be derived in a unified way from two fundamental mathematical ideas: the separation principle of convex analysis, and integral representations of continuous…

Functional Analysis · Mathematics 2012-11-20 Darinka Dentcheva , Andrzej Ruszczynski

We say a model is continuous in utilities (resp., preferences) if small perturbations of utility functions (resp., preferences) generate small changes in the model's outputs. While similar, these two questions are different. They are only…

Theoretical Economics · Economics 2024-03-05 Pablo Schenone
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