Search results for "Decision theory"
showing 10 items of 25 documents
When buyers also sell: The implications of pricing policies for customer satisfaction
2002
In certain purchase situations, such as when a new car is purchased and an old vehicle is traded in, individuals simultaneously play the role of buyers and sellers. It is interesting to observe that, when evaluating the purchase and selling prices of the new and old products respectively, such consumers often fail to behave rationally. For example, a discount on the price of the new commodity and an equivalent markup on the old product will be weighted differently. This empirical phenomenon can be analyzed with the aid of the prospect theory - an approach based on the descriptive decision theory. This theory facilitates the elaboration of decision-making rules for determining the optimum pu…
Objective Bayesian point and region estimation in location-scale models.
2007
Point and region estimation may both be described as specific decision problems. In point estimation, the action space is the set of possible values of the quantity on interest; in region estimation, the action space is the set of its possible credible regions. Foundations dictate that the solution to these decision problems must depend on both the utility function and the prior distribution. Estimators intended for general use should surely be invariant under one-to-one transformations, and this requires the use of an invariant loss function; moreover, an objective solution requires the use of a prior which does not introduce subjective elements. The combined use of an invariant informatio…
A fuzzy ranking strategy for portfolio selection applied to the Spanish stock market
2007
In this paper we present a fuzzy ranking procedure for the portfolio selection problem. The uncertainty on the returns of each portfolio is approximated by means of a trapezoidal fuzzy number. The expected return and risk of the portfolio are then characteristics of that fuzzy number. A rank index that accounts for both expected return and risk is defined, allowing the decision-maker to compare different portfolios. The paper ends with an application of that fuzzy ranking strategy to the Spanish stock market.
Shame in decision making under risk conditions: Understanding the effect of transparency.
2017
The role played by the emotion of shame in the area of decision-making in situations of risk has hardly been studied. In this article, we show how the socio-moral emotions and the anticipated feeling of shame associated with different options can determine our decisions, even overriding the cognitive choice tendency proposed by the certainty effect. To do so, we carried out an experiment with university students as participants, dividing them into four experimental conditions. Our findings suggest that people avoid making unethical decisions, both when these decisions are made public to others and when they remain in the private sphere. This result seems to indicate that the main factor in …
Statistical inference and Monte Carlo algorithms
1996
This review article looks at a small part of the picture of the interrelationship between statistical theory and computational algorithms, especially the Gibbs sampler and the Accept-Reject algorithm. We pay particular attention to how the methodologies affect and complement each other.
Notice of Violation of IEEE Publication Principles: Robust Observer Design for Unknown Inputs Takagi–Sugeno Models
2013
This paper deals with the observer design for Takagi-Sugeno (T-S) fuzzy models subject to unknown inputs and disturbance affecting both states and outputs of the system. Sufficient conditions to design an unknown input T-S observer are given in linear matrix inequality (LMI) terms. Both continuous-time and discrete-time cases are studied. Relaxations are introduced by using intermediate variables. Extension to the case of unmeasured decision variables is also given. A numerical example is given to illustrate the effectiveness of the given results.
Portfolio performance evaluation with loss aversion
2011
In this paper we consider a loss-averse investor equipped with a specific, but still quite general, utility function motivated by behavioral finance. We show that, under certain concrete assumptions concerning the form of this utility, one can derive closed-form solutions for the investor's portfolio performance measure. We investigate the effects of loss aversion and demonstrate its important role in performance measurement. The framework presented in this paper also provides a sound theoretical foundation for all known performance measures based on partial moments of the distribution.
Eleccion de variables en regresion lineal un problema de decision
1986
A general structure for the problem of selection of variables in regression is proposed using the decision theory framework. In particular, some results for the choice of the best linear normal homocedastic model are obtained when the main purpose is either to specify the predictive distribution over the response variable or to obtain a point estimate of it. A comparison of our results with the most widespread classical ones is presented
An interactive approach to multiple criteria optimization with multiple decision-makers
1986
In this article we propose a formal man-machine interactive approach to multiple criteria optimization with multiple decision makers. The approach is based on some of our earlier research findings in multiple criteria decision making. A discrete decision space is assumed. The same framework may readily be used for multiple criteria mathematical programming problems. To test the approach two experiments were conducted using undergraduate Business School students as subjects in Finland and in the United States. The context was, respectively, a high-level Finnish labor-management problem and the management-union collective bargaining game developed at the Krannert Graduate School of Management…
How does information technology– based service degradation influence consumers’ use of services? An information technology–based service degradation …
2019
Information technology is crucial for modern services. Service delivery may include a complex mix of information technology and telecommunication providers, global networks and customers’ information technology devices. This research focuses on service failures that are caused by information technology problems, which we conceptualize as information technology-based service degradation (ITSD). When information technology-based service degradation occurs in a modern service, the information technology problem may originate from the service provider, another partner or any information technology equipment involved. But the customer may not be able to pinpoint the source of the problem immedi…