We present an anytime algorithm which computes policies for decision problems represented as multi-stage influence diagrams. Our algorithm constructs policies incrementally, starting from a policy which makes no use of the available information. The incremental process constructs policies which includes more of the information available to the decision maker at each step. While the process conv...

This paper documents some stylized facts on evolving UK Phillips curves, and shows how these differ from their US versions. We interpret UK Phillips curve dynamics in a positive theory of monetary policy—how policy-maker attitudes on the Phillips curve have evolved since the 1950s—rather than, more traditionally, as interaction between exogenous demand and supply disturbances. Combining this fr...

We analyze a dynamic model of agenda formation in which players compete in each period to place their ideal policies on the agenda. In each period, with some probability, a decision maker takes an action from the agenda. We show that in any markov equilibrium of this game, players with extreme ideal policies will always compete to be in the agenda. On the other hand, there is a positive probabi...

This paper examines the impact of Knightian uncertainty upon optimal climate policy through the prism of a continuous-time real option modelling framework. We analytically determine optimal intertemporal climate policies under ambiguous assessments of climate damages. Additionally, numerical simulations are provided to illustrate the properties of the model. The results indicate that increasing...

Reversals of policy recommendations occur in risk management when the social decision maker aggregates individuals’ subjective utilities for the outcomes of a risky policy measure. The level of detail with which these outcomes are described can significantly affect the resulting policy recommendation. The choice of the level of detail on which we conduct an analysis therefore amounts to an impl...

Traditionally, inventory models with trade credit policy deal with contain demand or merely dependent on the retailing price. Therefore, this paper tries to incorporate the retailer’s inventory-dependent demand and storage space limited in the retailer’s inventory model, which will make the decision-maker of inventory system to know whether to rent RW and how to order. Two easy-touse theorems a...

We consider a dynamical approach to game in extensive forms. By restricting the convertibility relation over strategy profiles, we obtain a semi-potential (in the sense of Kukushkin), and we show that in finite games the corresponding restriction of better-response dynamics will converge to a Nash equilibrium in quadratic (finite) time. Convergence happens on a per-player basis, and even in the...

A standard result in the literature on environmental economics is that efficient environmental policies regulating transboundary pollution will be adopted only if there is interjurisdictional coordination. Efficient policies can be adopted as a result of interregional treaties or mandated by a central authority. The present paper demonstrates that if there is perfect population mobility between...

By policy, we mean a decision maker (Agent) that decide on an action based on some parameterized rules given an input observation of environment (State). The policy can be a set of weight that linearly combine the features in a state or different structured Neural Network. The environment in Reinforcement Learning context provide the agent a new state and reward immediately after the agent take...

We examine the strategic interaction between interconnection and competition in the Internet backbone market. Networks asymmetric in size choose among different interconnection regimes, IP-Transit, Bill-and-Keep Peering, and Paid Peering, and compete for end-users. We show that sufficiently symmetric networks enter a Peering agreement while otherwise use an intermediary network for exchanging t...