We seek to determine the optimal amount of the insurer’s investment in all types of assets for a small and closed economy. The goal is to detect the implications and contributions the risk seeker and risk aversion insurer commonly make and the effectiveness in the investment decision. Also, finding the optimum portfolio for each is the main goal of the present study. To this end, we adopted the...

A model for decision making that generalizes Expected Utility Maximization is presented. This model, Expected Qualitative Utility Maximization, encompasses the Maximin criterion. It relaxes both the Independence and the Continuity postulates. Its main ingredient is the definition of a qualitative order on nonstandard models of the real numbers and the consideration of nonstandard utilities. Exp...

Multiagent planning has seen much progress with the development of formal models such as DecPOMDPs. However, the complexity of these models—NEXP-Complete even for two agents— has limited scalability. We identify certain mild conditions that are sufficient to make multiagent planning amenable to a scalable approximation w.r.t. the number of agents. This is achieved by constructing a graphical mo...

We investigate the ergodic problem of growth-rate maximization under a class of risk constraints in the context of incomplete, Itô-process models of financial markets with random ergodic coefficients. Including value-at-risk (VaR), tail-value-at-risk (TVaR), and limited expected loss (LEL), these constraints can be both wealth-dependent (relative) and wealth-independent (absolute). The optimal ...

While influence maximization in social networks has been studied extensively in computer science community for the last decade the focus has been on the progressive influence models, such as independent cascade (IC) and Linear threshold (LT) models, which cannot capture the reversibility of choices. In this paper, we present the Heat Conduction (HC) model which is a non-progressive influence mo...

It is important to approach negotiations in a way that ensures privacy. So far, research has focused on securely solving restricted classes of negotiation techniques, mainly the (M+1)-st-price auctions. Here we show how these results can be adapted to more general problems. This paper extends our previous results on how distributed finite discrete problems can be solved securely. Such problems ...

This paper re-examines research that studies economic rationality using experimental data generated by nonhuman animals (e.g. rats, pigeons, monkeys, etc.). The standard methodology to elicit choices from allows a researcher test three types of rationality: deterministic utility maximization, average choice rationality, and random maximization. Most the has evaluated whether satisfy rationality...

Many decision models in marketing science and psychology assume that a consumer chooses by proceeding sequentially through a checklist of desirable properties. These models are contrasted to the utility maximization model of rationality in economics. We show on the contrary that the two approaches are nearly equivalent. Moreover, the length of the shortest checklist as a proportion of the numbe...