I apply a prospect theory model of risk preferences with an endogenously determined reference point to propose an alternative objective of maximizing expected outcome rather than maximizing expected utility. I show that an agent can always form a consistent expected outcome for any binary gamble and derive a parametric formula, which can then be used to examine the effects of loss aversion, ris...

Following studies of human decision-making under risk and uncertainty, extensive evidence of loss aversion and asymmetric risk-taking behaviour around a reference point was found. This work presents an investigation of the effect of the reference point value on the stochastic network equilibrium. Prospect Theory, based on empirical experiments, proposes an alternative to the traditional risktak...

In ad hoc wireless mobile networks, the mobility of wireless nodes plays a significant role in evaluating the network’s performance. As the nodes are mobile there is a frequent transition between the connections of nodes from up to down state. It is essential to know th e likeliness of having a connection between different nodes and the parameters on which the connection probability depends in ...

Manuscript accepted 17 August 1999. Fish. Bull. 98:75–85 (2000). Abstract.–For fish populations with an annual breeding cycle, a biological reference point based on the Leslie matrix is presented and compared with percent maximum spawning potential (%MSP) and Fmed reference points. For deterministic population projections, the reference point is defined as the level of fishing mortality (Fst) t...

This paper presents a summary of reference point methodology in vector optimization and decision support. The methodology was developed at IIASA since 1980 and applied in numerous projects, both in IIASA and elsewhere. The paper presents methodological foundations, basic concepts and notation, reference points and achievement functions, neutral and weighted compromise solutions, issues of model...

This paper investigates the relationship between the quasilocal energy of Brown and York and certain spinorial expressions for gravitational energy constructed from the Witten-Nester integral. A key feature of the Brown-York method for defining quasilocal energy is that it allows for the freedom to assign the reference point of the energy. When possible, it is perhaps most natural to reference ...

Newsvendor problem is a fundamental singleitem inventory problem with stochastic demands over a single period. In the traditional newsvendor model, the expected utility theory is introduced to measure the risk attitude of decision-maker. However, behavior of decisionmaker for many practical problems cannot be explained with the expected utility theory. As a result, prospect theory of the behavi...

In a standard Markov decision process (MDP), rewards are assumed to be precisely known and of quantitative nature. This can be a too strong hypothesis in some situations. When rewards can really be modeled numerically, specifying the reward function is often difficult as it is a cognitively-demanding and/or time-consuming task. Besides, rewards can sometimes be of qualitative nature as when the...

This paper proposes a novel approach called the Harris’s Hawk Multi-Objective Optimizer (HHMO), which is used for solving reference point multi-objective problems. This algorithm is based on the grey wolf multi-objective optimization algorithm and motivated by the cooperative hunting behaviors of the Harris’s Hawk. These hawks are known as the wolf pack of the sky. The hunting party consists of...

It is commonly assumed that how individuals identify on the political spectrum-whether liberal, conservative, or moderate-has a universal meaning when it comes to policy stances and voting behavior. But, does political identity mean the same thing from place to place? Using data collected from across the U.S. we find that even when people share the same political identity, those in "bluer" loca...