The generalized stochastic preference choice model

We propose a new discrete choice model that generalizes the random utility model (RUM). We show that this model, called the \emph{Generalized Stochastic Preference} (GSP) model can explain several choice phenomena that can't be represented by a RUM. In particular, the model can easily (and also exactly) replicate some well known examples that are not RUM, as well as controlled choice experiments carried out since 1980's that possess strong regularity violations. One such regularity violation is the \emph{decoy effect} in which the probability of choosing a product increases when a similar, but inferior product is added to the choice set. An appealing feature of the GSP is that it is non-parametric and therefore it has very high flexibility. The model has also a simple description and interpretation: it builds upon the well known representation of RUM as a stochastic preference, by allowing some additional consumer types to be non-rational

Bargaining Mechanisms for One-Way Games

We introduce one-way games, a framework motivated by applications in large-scale power restoration, humanitarian logistics, and integrated supply-chains. The distinguishable feature of the games is that the payoff of some player is determined only by her own strategy and does not depend on actions taken by other players. We show that the equilibrium outcome in one-way games without payments and the social cost of any ex-post efficient mechanism, can be far from the optimum. We also show that it is impossible to design a Bayes-Nash incentive-compatible mechanism for one-way games that is budget-balanced, individually rational, and efficient. To address this negative result, we propose a privacy-preserving mechanism that is incentive-compatible and budget-balanced, satisfies ex-post individual rationality conditions, and produces an outcome which is more efficient than the equilibrium without payments. The mechanism is based on a single-offer bargaining and we show that a randomized multi-offer extension brings no additional benefit.Comment: An earlier, shorter version of this paper appeared in Proceedings of the Twenty-Fourth International joint conference on Artificial Intelligence (IJCAI) 201

Optimizing Expected Utility in a Multinomial Logit Model with Position Bias and Social Influence

Motivated by applications in retail, online advertising, and cultural markets, this paper studies how to find the optimal assortment and positioning of products subject to a capacity constraint. We prove that the optimal assortment and positioning can be found in polynomial time for a multinomial logit model capturing utilities, position bias, and social influence. Moreover, in a dynamic market, we show that the policy that applies the optimal assortment and positioning and leverages social influence outperforms in expectation any policy not using social influence

Measuring and Optimizing Cultural Markets

Social influence has been shown to create significant unpredictability in cultural markets, providing one potential explanation why experts routinely fail at predicting commercial success of cultural products. To counteract the difficulty of making accurate predictions, "measure and react" strategies have been advocated but finding a concrete strategy that scales for very large markets has remained elusive so far. Here we propose a "measure and optimize" strategy based on an optimization policy that uses product quality, appeal, and social influence to maximize expected profits in the market at each decision point. Our computational experiments show that our policy leverages social influence to produce significant performance benefits for the market, while our theoretical analysis proves that our policy outperforms in expectation any policy not displaying social information. Our results contrast with earlier work which focused on showing the unpredictability and inequalities created by social influence. Not only do we show for the first time that dynamically showing consumers positive social information under our policy increases the expected performance of the seller in cultural markets. We also show that, in reasonable settings, our policy does not introduce significant unpredictability and identifies "blockbusters". Overall, these results shed new light on the nature of social influence and how it can be leveraged for the benefits of the market

Order, implicit recurrence

El orden pareciera ser la preexistencia necesaria de todo lo existente, desde lo inanimado hasta la conciencia humana, con la subyacente estructura biológica. Tal vez se trate de una lectura compulsivamente antropocéntrica, de ser así, debiera tratarse de la más objetiva, si esta presunción cabe entre los hombres. A tal orden no le podemos exigir una misión o función moral ni moralizante, al preexistir y extender su existencia hasta cualquier presente histórico, lo fundamenta aun a costa del sufrimiento humano. Las consecuencias de estas características son las que investiga el ensayo donde el autor intenta, por todos los medios intelectuales a su alcance, evadir los planteos ideologizantes para su comprensión y desarrollo.It would appear that order must necessarily pre-exist everything which exists, from the inanimate to human consciousness with its underlying biological structure. This may be a compulsively anthropocentric reading, and if so perhaps an attempt should be made at greater objectivity, if men are capable of such. Of such an order we cannot demand a moral or moralizing mission or function; if it pre-exists, and extends its existence into any historical present, it is the basis for that present even at the cost of human suffering. The consequences of these characteristics are investigated in this essay, in which the author tries, by all the intellectual means at his command, to understand and develop them without positing any ideology