we analyze a sequential decision making process, in which at each stepthe decision is made in two stages. in the rst stage a partially optimalaction is chosen, which allows the decision maker to learn how to improveit under the new environment. we show how inertia (cost of changing)may lead the process to converge to a routine where no further changesare made. we illustrate our scheme with som...

Enabling autonomous systems to comply with an ethical theory is critical given their accelerating deployment in domains that impact society. While many theories have been studied extensively moral philosophy, they are still challenging implement by developers who build systems. This paper proposes a novel approach for building ethically compliant optimize completing task while following framewo...

We analyze a sequential decision making process, in which at each stepthe decision is made in two stages. In the rst stage a partially optimalaction is chosen, which allows the decision maker to learn how to improveit under the new environment. We show how inertia (cost of changing)may lead the process to converge to a routine where no further changesare made. We illustrate our scheme with some...

Article history: Received 21 March 2013 Received in revised form 14 November 2013 Accepted 15 November 2013 Available online 19 December 2013

The Basel II Accord pointed out benefits of credit risk management through internal models to estimate Probability of Default (PD). Banks use default predictions to estimate the loan applicants’ PD. However, in practice, PD is not useful and banks applied credit scorecards for their decision making process. Also the competitive pressures in lending industry forced banks to use profit scorecards...