Search results for "reference point"
showing 10 items of 14 documents
The role of «perceived loss» aversion on credit screening: an experiment
2013
A major characteristic of credit markets is information asymmetry.To combat its problems, as credit rationing, principals can use a menu of contracts to screen clients with different risk level. We conduct a laboratory experiment to address an important question for such settings —does the framing of the offered menu of contracts interfere with the self-selection mechanism? The answer is yes. We find subjects' choices shift when the same (positive) outcomes of the same menu of contracts are presented in two different frames. Subjects exhibit loss aversion in their perception of the positive outcomes below the reference point, and self-selection fails to occur. Uno de los mayores problemas a…
Minimal Learning Machine: Theoretical Results and Clustering-Based Reference Point Selection
2019
The Minimal Learning Machine (MLM) is a nonlinear supervised approach based on learning a linear mapping between distance matrices computed in the input and output data spaces, where distances are calculated using a subset of points called reference points. Its simple formulation has attracted several recent works on extensions and applications. In this paper, we aim to address some open questions related to the MLM. First, we detail theoretical aspects that assure the interpolation and universal approximation capabilities of the MLM, which were previously only empirically verified. Second, we identify the task of selecting reference points as having major importance for the MLM's generaliz…
How Long-Term Contracts can Mitigate Inefficient Renegotiation Arising Due to Loss Aversion
2021
A loss-averse buyer and seller face an uncertain environment. Should they write a long-term contract or wait until the state of the world is realized? I show that simple long-term contracts perform better than insinuated in Herweg and Schmidt (2015), even though loss aversion makes renegotiation sometimes inefficient. During renegotiation, the outcome induced by the long-term contract constitutes the reference point to which the parties compare gains and losses induced by the renegotiated transaction. Whereas Herweg and Schmidt consider that the long-term contract is always performed, it should not in "bad" states. This alters the threat point in renegotiation, making it easier to renegotia…
IRA-EMO : Interactive Method Using Reservation and Aspiration Levels for Evolutionary Multiobjective Optimization
2019
We propose a new interactive evolutionary multiobjective optimization method, IRA-EMO. At each iteration, the decision maker (DM) expresses her/his preferences as an interesting interval for objective function values. The DM also specifies the number of representative Pareto optimal solutions in these intervals referred to as regions of interest one wants to study. Finally, a real-life engineering three-objective optimization problem is used to demonstrate how IRA-EMO works in practice for finding the most preferred solution. peerReviewed
Multi-scenario multi-objective robust optimization under deep uncertainty: A posteriori approach
2021
This paper proposes a novel optimization approach for multi-scenario multi-objective robust decision making, as well as an alternative way for scenario discovery and identifying vulnerable scenarios even before any solution generation. To demonstrate and test the novel approach, we use the classic shallow lake problem. We compare the results obtained with the novel approach to those obtained with previously used approaches. We show that the novel approach guarantees the feasibility and robust efficiency of the produced solutions under all selected scenarios, while decreasing computation cost, addresses the scenario-dependency issues, and enables the decision-makers to explore the trade-off …
An Interactive Evolutionary Multiobjective Optimization Method: Interactive WASF-GA
2015
In this paper, we describe an interactive evolutionary algorithm called Interactive WASF-GA to solve multiobjective optimization problems. This algorithm is based on a preference-based evolutionary multiobjective optimization algorithm called WASF-GA. In Interactive WASF-GA, a decision maker (DM) provides preference information at each iteration simple as a reference point consisting of desirable objective function values and the number of solutions to be compared. Using this information, the desired number of solutions are generated to represent the region of interest of the Pareto optimal front associated to the reference point given. Interactive WASF-GA implies a much lower computational…
CEO satisfaction and intended strategic changes
2018
How do CEOs react to attainment discrepancies in their organizations' performance? Scholars have generally argued that (only) when performance falls below a certain aspiration level do CEOs intend to change the organization's strategy. However, empirical evidence on this issue is ambiguous and inconclusive. We address this puzzle directly by studying how CEOs' cognitive interpretations of performance (their satisfaction with the firm's performance) affect the magnitude of intended strategic changes, and we explore the moderating effect of the context (performance compared to the industry) on this relationship. Using a sample of medium-sized organizations, we find that CEOs' satisfaction wit…
DECORIN EFFECTS ON PROTEOMIC PROFILING OF BREAST CANCER CELLS: AN UPDATED STUDY
2015
The malignant carcinomas are characterized by several capabilities acquired by the neoplastic cells, among which the ability to invade the extracellular matrix (ECM) and to establish a crosstalk with several ECM components. Under this respect, the extracellular microenvironment is an entity extraordinarily rich of information with opposite signals. Our group has long undertaken the study of the effects of ECM molecules on the behavior of cancer cells in vitro. Among the studied molecules, the decorin was found to exert a non-permissive effect on the growth and motility of the transfected tumor cells. The decorin, belongs to the family of small leucine-rich proteoglycans (SLRP) and is involv…
Why farmers consider pesticides the ultimate in crop protection: economic and behavioral insights
2018
International audience; The observed dependence of current crop production on chemical crop protection is largely due to economic and technological factors. High yield and specialized cropping systems require high crop protection levels and pesticides allow achieving such protection levels at reasonable (private) costs. The main aim of this article is to show that behavioral factors may reinforce the effects of these economic and technological factors on farmers considering pesticides the ultimate in crop protection. Choice mechanisms described by K?szegi and Rabin (2007) imply that individual attitudes toward a given risk are endogenous in the sense that they depend on the best available m…
Goals and guesses as reference points: a field experiment on student performance
2022
In this paper, we study overconfidence and goal-setting in academic performance, with and without monetary incentives. Students enrolled in a microeconomics course were offered the possibility of setting their own target grade before taking part in the final exam. They were also asked to guess their grade immediately after they had taken the exam (“post-diction”). In general, students overestimated their performance, both at the goal-setting and at the post-diction stages. Controlling for several sources of this bias (cognitive abilities, academic record and self-reported academic confidence), we find that the use of monetary rewards mitigates the overestimation of potential achievements an…