Publications related to Exponential utility

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There is little agreement on the social objective that should guide the intergenerational allocation of an exhaustible resource. Thus, remaining agnostic about a broad class of possible societal goals, we propose assessing feasible consumption paths by a fairness index that measures the worst relative performance across generations. Each generation's performance ratio compares its attained welfare with the maximum welfare achievable for that generation in isolation. The resulting fairness criterion is robus

The rapid growth of cities demands sophisticated decision support systems capable of simultaneously tackling social, economic, and environmental issues in urban planning. This research introduces a comprehensive decision-making framework that integrates machine learning to optimize urban infrastructure development. To improve the reliability of the analysis, recursive feature elimination paired with random forest (RF-RFE) is utilized to pinpoint the most critical factors, ensuring that the decision process

We consider two privacy measures, local differential privacy and binary maximal leakage, simultaneously. We study the subsequent utility-privacy trade-off for two utility problems: information preservation and f-divergence maximization. We present new achievability results for both problems over all mechanisms that satisfy the combined privacy measure and compare this with the optimal utility over all ϵ-LDP mechanisms. In particular, we study the binary mechanism with erasure and the randomized response mec

The construction sector is the world's largest consumer of raw materials, and emissions from housing and construction contribute to approximately 40% of all annual global carbon dioxide emissions. With cities racing to meet their climate targets, there is an urgency to understand how to extend the lifespan of current building stock while adapting it to meet environmental sustainability targets. However, determining (and lengthening) the lifespan of a building is not self-evident, it extends far beyond the m

Buildings are demolished when they are considered obsolete, in other words, when they have reached the end of their lifespan. Demolition leads to waste; in Europe, construction and demolition waste accounts for approximately 25-30% of the total waste generated, and rubble produced during the construction and demolition of buildings accounts for 12% of total waste in Europe. In the face of climate change, there is a need for rethinking the management of resources. Circular economy advocates for lengthening t

We propose a framework to find optimal price-based policies to regulate markets characterized by oligopolistic competition and in which consumers make a discrete choice among a finite set of alternatives. With this framework, we can include general discrete choice models available in the literature to capture heterogeneous consumer behavior. In our work, consumers are utility maximizers and are modeled according to random utility theory. Suppliers are modeled as profit maximizers, according to the tradition

Background The amount of alcohol consumed during an occasion can be influenced by physical and social attributes of the setting, characteristics and state of individuals, and the interactions of these components. This systematic review identifies and descr ...

The integration of discrete choice models in Mixed Integer Linear Programming (MILP) models provides a better understanding of the preferences of the customers to the operators while planning for their systems. However, the formulations associated with choice models are highly nonlinear and non convex. In order to overcome this limitation, we propose a linear formulation of a general discrete choice model that can be embedded in any MILP formulation by relying on simulation. We characterize a demand-based b

In this paper we extend the Multiple Indicator Solution (MIS),used to correct for endogeneity, so that it can also be used when there are interactions between observed and unobserved factors in the specification of the utility function. We show the theoretical derivation and illustrate it with a case study. Policy indicators, such as time elasticity and value of time are derived, and the results are compared with a logit model and with an Integrated Choice and Latent Variable (ICLV) model. The contribution

We study the pricing and hedging of contingent claims that are subject to Event Risk which we define as rare and unpredictable events whose occurrence may be correlated to, but cannot be hedged perfectly with standard marketed instruments. The super-replication costs of such event sensitive contingent claims (ESCC), in general, provide little guidance for the pricing of these claims. Instead, we study utility based prices under two scenarios of resolution of uncertainty for event risk: when the event is con

This article describes how prices are treated in economic theory. Section 17.2 begins by introducing the concepts of ‘rational preference’ and ‘utility function’, which are standard building blocks of models that attempt to explain choice behaviour. Section 17.3 introduces the notion of a Walrasian equilibrium, where supply equals demand and market prices are determined by the self-interested behaviour of market participants. Section 17.4 considers the possibility of disequilibrium and Walrasian âtonnement

The goal of jointly providing fairness and efficiency in wireless networks can be seen as the problem of maximizing a given utility function. The main difficulty when solving this problem is that the capacity region of wireless networks is typically unknown and time-varying, which prevents the usage of traditional optimization tools. As a result, scheduling and congestion control algorithms are either too conservative because they under-estimate the capacity region, or suffer from congestion collapse becaus

Departure time choice modeling has been part of main stream travel behavior research for more than three decades. Congestion management schemes are based on the assumption that travelers optimize their departure time choice. Ever since Vickrey, in the late 1960's and later updated by Small in the 1970's, the concept of schedule-delays (early and late) has been the focus of most modeling endeavors. The main idea is that travelers organize their departure time based on a preferred arrival time (PAT). The main

We consider the problem of peer selection for multimedia trans- mission over a peer-to-peer (P2P) network to find a strategy model for peer selection for each lost packet. Our problem consists of two parts one related to the P2P network that is a peer selection method, and the other is related to the uplink bandwidth that each peer in the network receives from a licensed spectrum holder. Moreover, if a peer wants to download a desired packet from another peer in the network, it should pay a certain amount o

Recent neurophysiological studies reveal that risk and reward are separately encoded in the human brain, and that the encodings display different timing patterns. Therefore, we hypothesized that sensitivity of trading decisions to risk and reward parameters would differ depending on time pressure. Consistent with this prediction, we find that decisions under extreme time pressure (1s delay time, with decision to be made in next 1s interval) reflect preference for expected reward and aversion to variance and

In this paper we propose the use of Discrete Choice Analysis (DCA) for static facial expression classification. Facial expressions are described with expression descriptive units (EDU), consisting in a set of high level features derived from an active appearance model (AAM). The discrete choice model (DCM) is built considering the 6 universal facial expressions plus the neutral one as the set of the available alternatives. Each alternative is described by an utility function, defined as the sum of a linear

The role of discrete choice models in decision-making support has significantly grown during the past 20 years. This is particularly true in the context of marketing and transportation, where it is critical to understand and forecast choice behavior in a detailed way. In this presentation, we will provide an overview of recent methodological developments in this area, with a specific focus on the difficult problem of route choice modeling in transportation. The multinomial logit (MNL) model is probably the

The objective of this paper is to present the operating and hedging analysis of a hydroelectric system in a non-hydro dominated market using a specifically-developed tool for operating and contracting decisions. Hydropower companies are likely to face stochastic inflows, spot prices, and forward prices, during their operation. The objective of the tool is to maximize expected revenues from spot and forward market trading, considering suitable indicators of the company risk aversion. We benchmark the impleme

We study the pricing and hedging of contingent claims that are subject to Event Risk which we define as rare and unpredictable events whose occurrence may be correlated to, but cannot be hedged perfectly with standard marketed instruments. The super and sub-replication costs of such event sensitive contingent claims (ESCC), in general, provide little guidance for the pricing of these claims. Instead, we study utility based prices of ESCC under two scenarios of resolution of uncertainty for event risk: when

In this paper, we present and investigate a new method for subband-based Automatic Speech Recognition (ASR) which approximates the ideal full combination' approach which is itself often not practical to realize. The full combination' approach consists of explicitly considering all possible combinations of subbands (\cite{Hermansky96:TAO}) avoiding the usually necessary independence assumption, which would limit the potential of subband-based ASR. We show how this ideal approach can be effectuated by a non

Exponential utility

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Fair Allocation of an Exhaustible Resource

A picture fuzzy multi-criteria decision-making framework for evaluating urban planning proposals under uncertainty

On the Extremal Mechanisms for Local Differential Privacy & Binary Maximal Leakage

(In)visible reuse: Retrofit and refurbishment practices in the home

Questioning obsolescence: When does a dwelling reach the end of its life?

Price-based regulation of oligopolistic markets under discrete choice models of demand

The contexts of heavy drinking: A systematic review of the combinations of context-related factors associated with heavy drinking occasions

A Lagrangian relaxation technique for the demand-based benefit maximization problem

Correcting for endogeneity using the multiple indicator solution

Event risk, contingent claims and the temporal resolution of uncertainty

Price Theory in Economics

A Measurement-Based Algorithm to Maximize the Utility of Wireless Networks

A behavioral departure time choice model with latent arrival time preference and rewards for peak-hour avoidance

Game Theory Video Streaming

Neurophysiological evidence on perception of reward and risk: Implications for trading under time pressure

Discrete Choice Models for Static Facial Expression Recognition

Recent methodological developments in discrete choice models

Benchmarking of hydroelectric stochastic risk management models using financial indicators

Event Risk, Contingent Claims and the Temporal Resolution of Uncertainty

Different Weighting Schemes in the Full Combination Subbands Approach for Noise Robust ASR