We provide a condition for rationalizability by risk-averse expected utility preference in a demand-based framework with multiple commodities, which is a UNCAF statement in the sense of Chambers et al. (2014). Our test can be viewed as a natural counterpart of a classical test of expected utility, due to Fishburn (1975), in a demand setting.

In this article, an individual’s tax-exempt bond porrfolio decision is investigated. A model capturing the relationship between income uncertainty and optimal portfolio choice is defined when an individual decision-maker has the opportunity to hold higher yielding private-activity bonds. The findings in this article show that in most cases risk-averse individuals will maximize the expected util...

The choice to enter and leave a romantic relationship can be framed as a decision-making problem based on expected utility of the partnership over time, akin to a forager deciding whether to stay in a particular patch based on the amount of resources it provides. We examined the temporal trajectory of three traits that may correspond to resources in romantic relationships—trust, love, and satis...

The objective of this paper is to show how ambiguity, and a decision maker (DM)’s response to it, can be modelled formally in the context of a general decision model. We introduce a relation derived from the DM’s preferences, called ‘‘unambiguous preference’’, and show that it can be represented by a set of probabilities. We provide such set with a simple differential characterization, and argu...

Offline evaluation for information retrieval aims to compare the performance of retrieval systems based on relevance judgments for a set of test queries. Since manual judgments are expensive, selective labeling has been developed to semiautomatically label documents, in the wake of the similarity relationship among retrieved documents. Intuitively, the agreement w.r.t the cluster hypothesis can...

Electronic voting systems are widely used in elections. This paper describes using an e-voting system as the basis for a project in an undergraduate computer security class. The goal of the project was to teach the students how to use the Flaw Hypothesis Methodology to perform a penetration study.

We generalize the classical expected-utility criterion by weakening transitivity to the conjunction of transitive indifference and Suzumura consistency. In the absence of full transitivity, completeness no longer follows as a consequence of the system of axioms employed and a richer class of rankings of probability distributions results. This class is characterized by means of standard expected...

Recent changes in the assessment andmanagement of risks has had the effect that greater importance has been placed on relationships between individuals and within groups to inform decision making. In this paper, we provide the theoretical underpinning for an expected utility approach to decision-making. The approach, which is presented using established evidence support logic (TESLATM), integra...

We address the problem of hedging inventory risk for a short lifecycle or seasonal item when its demand is correlated with the price of a financial asset. We show how to construct optimal hedging transactions that minimize the variance of profit and increase the expected utility for a risk-averse decision-maker. We show that for a wide range of hedging strategies and utility functions, a risk-a...

This article reports on a newly discovered bug in the original simulation argument. Two different ways of patching the argument are proposed, each of which preserves the original conclusion.