This paper provides a new way to understand the concept of a utility function. By looking into the cognitive processes of information acquisition, I demonstrate how a utility function can be derived from deeper first principles. Crucially, assuming that humans possess only a minimal set of cognitive tools ordinal comparison and proportion (or frequency-of-occurrence) estimation, I show that the...

This paper examines the methods used by the Bank of Japan for the estimation of the output gap. Attention is paid to the real-time estimation problem. After reviewing the evolution of output gap estimation at the Bank, I discuss advantages and disadvantages of the various output gap measures. First, I examine the usefulness of the output gap for inflation forecasting and show that the real-time...

Metal price is one of the most important parameters in the calculation of cut- off grade. The cut- off grade has the main role in determination of mine layout. Mine layout actuates mineable reserve, mine life and economic profitability. Not considering the uncertainty in metal prices can lead to a non-optimal layout. In this paper optimum underground mine layout is determined by expected utilit...

Methodologies related with information theory have been increasingly used in studies in economics and management. In this paper we use Generalized Maximum Entropy as an alternative to the Ordinary Least Squares in the estimation of utility functions. We estimated linear, logarithmic and power utility functions as well as confidence intervals and in order to compare both methodologies. Results p...

Classic decision-theory is based on the maximum expected utility (MEU) principle, but crucially ignores the resource costs incurred when determining optimal decisions. Here we propose an axiomatic framework for bounded decision-making that considers resource costs. Agents are formalized as probability measures over input-output streams. We postulate that any such probability measure can be assi...

We consider two semiparametric models for the weight function in a biased sample model. The object of our interest parametrizes the weight function, and it is either Euclidean or non Euclidean. One of the models discussed in this paper is motivated by the estimation the mixing distribution of individual utility functions in the DAX market.

Background and Objectives: The selection of the sustainable supplier is important for any industry. Medical centers are not an exception in this case, and selecting the best sustainable supplier is a major step towards increasing their productivity. This paper, using the Data Envelopment Analysis and then using Multi-Attributed Utility Theory as a backup approach to fix errors, attempts t...

Warranty is a powerful implement for marketing strategy that is used by manufacturersand creates satisfaction for consumers by ensuring to compensate for incorrect operation of the product. Warranty serviceresults ina cost named warranty cost for a manufacturer.This cost is a function of warranty policy, regions, and product failures pattern. Since this service coversthe cost of uncertain failu...

We consider the problem of population density estimation based on location data crowdsourced from mobile devices, using kernel (KDE). In a conventional, centralized setting, KDE requires users to upload their server, thus raising privacy concerns. Here, we propose Federated framework for estimating user density, which not only keeps devices but also provides probabilistic guarantees against mal...

Data sanitization is a process that is used to promote the sharing of transactional databases among organizations and businesses, it alleviates concerns for individuals and organizations regarding the disclosure of sensitive patterns. It transforms the source database into a released database so that counterparts cannot discover the sensitive patterns and so data confidentiality is preserved ag...