Expected Utility Theory for Monitoring-Based Decision-Making
نویسندگان
چکیده
منابع مشابه
One-reason decision-making: Modeling violations of expected utility theory
People violate expected utility theory and this has been traditionally modeled by augmenting its weight-and-add framework by nonlinear transformations of values and probabilities. Yet individuals often use one-reason decision-making when making court decisions or choosing cellular phones, and institutions do the same when creating rules for traffic safety or fair play in sports. We analyze a mo...
متن کاملAn Implementation of Expected Utility Theory in Decision Based Design
The development of a design science rests on the ideal that design is anchored in a set of fundamental axioms similar to the more ‘traditional’ sciences of mathematics and physics. However, the axioms upon which a design science is constructed must reflect that design is a science of the artificial. It is our contention that such axioms may exist in DecisionBased Design as those formulated by v...
متن کاملDynamic decision making without expected utility: An operational approach
Non-expected utility theories, such as rank dependent utility (RDU) theory, have been proposed as alternative models to EU theory in decision making under risk. These models do not share the separability property of expected utility theory. This implies that, in a decision tree, if the reduction of compound lotteries assumption is made (so that preferences at each decision node reduce to RDU pr...
متن کاملExpected Utility and Entropy-Based Decision-Making Model for Large Consumers in the Smart Grid
In the smart grid, large consumers can procure electricity energy from various power sources to meet their load demands. To maximize its profit, each large consumer needs to decide their energy procurement strategy under risks such as price fluctuations from the spot market and power quality issues. In this paper, an electric energy procurement decision-making model is studied for large consume...
متن کاملExpected Uncertain Utility Theory†
We introduce and analyze expected uncertain utility theory (EUU). A prior and an interval utility characterize an EUU decision maker. The decision maker transforms each uncertain prospect into an interval-valued prospect that assigns an interval of prizes to each state. She then ranks prospects according to their expected interval utilities. We define uncertainty aversion for EUU, use the EUU m...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Proceedings of the IEEE
سال: 2016
ISSN: 0018-9219,1558-2256
DOI: 10.1109/jproc.2015.2511540