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Preference Parameters (preference + parameter)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting50%

Selected Abstracts

Competitive flow control in general multi-node multi-link communication networks

INTERNATIONAL JOURNAL OF COMMUNICATION SYSTEMS, Issue 2 2008
Ismet Sahin
Abstract In this paper, we consider the flow control in a general multi-node multi-link communication network with competing users. Each user has a source node, a destination node, and an existing route for its data flow over any set of links in the network from its source to its destination node. The flow rate for each user is a control variable that is determined by optimizing a user-specific utility function which combines maximizing the flow rate and minimizing the network congestion for that user. A preference parameter in the utility function allows each user to adjust the trade-off between these two objectives. Since all users share the same network resources and are only interested in optimizing their own utility functions, the Nash equilibrium of game theory represents a reasonable solution concept for this multi-user general network. The existence and uniqueness of such an equilibrium is therefore very important for the network to admit an enforceable flow configuration. In this paper, we derive an expression for the Nash equilibrium and prove its uniqueness. We illustrate the results with an example and discuss some properties and observations related to the network performance when in the Nash equilibrium. Copyright © 2007 John Wiley & Sons, Ltd. [source]

THE ROLE OF NONCOGNITIVE SKILLS IN EXPLAINING COGNITIVE TEST SCORES

ECONOMIC INQUIRY, Issue 1 2008
LEX BORGHANS
This article examines whether noncognitive skills,measured both by personality traits and by economic preference parameters,influence cognitive tests' performance. The basic idea is that noncognitive skills might affect the effort people put into a test to obtain good results. We experimentally varied the rewards for questions in a cognitive test to measure to what extent people are sensitive to financial incentives. To distinguish increased mental effort from extra time investments, we also varied the questions' time constraints. Subjects with favorable personality traits such as high performance motivation and an internal locus of control perform relatively well in the absence of rewards, consistent with a model in which trying as hard as you can is the best strategy. In contrast, favorable economic preference parameters (low discount rate, low risk aversion) are associated with increases in time investments when incentives are introduced, consistent with a rational economic model in which people only invest when there are monetary returns. The main conclusion is that individual behavior at cognitive tests depends on noncognitive skills. (JEL J20, J24) [source]

A cohort study to examine whether time and risk preference is related to smoking cessation success

ADDICTION, Issue 6 2009
Rei Goto
ABSTRACT Aim To identify whether time and risk preference predicts relapse among smokers trying to quit. Design A cohort study of smokers who had recently started to quit. Time and risk preference parameters were estimated using a discrete choice experiment (DCE). Participants A total of 689 smokers who began quitting smoking within the previous month. Measurements Time discount rate, coefficient of risk-aversion measured at study entry and duration of smoking cessation measured for 6 months. Findings In the unadjusted model, Cox's proportional hazard regression showed that those with a high time discount rate were more likely to relapse [hazard ratio: 1.18, 95% confidence interval (CI): 1.11,1.25]. A high coefficient of risk-aversion reduced the hazard of relapse (0.96, 0.96,0.97). When adjusted for other predictors of relapse (age, gender, self-efficacy of quitting, health status, mood variation, past quitting experience, the use of nicotine replacement therapy, nicotine dependence), the hazard ratios of time discount rate and the coefficient of risk-aversion is 1.17 (95% CI: 1.10,1.24) and 0.98 (95% CI: 0.97,0.99), respectively. Conclusions Those who emphasize future rewards (time,patient preference) and those who give more importance to rewards that are certain (higher risk-aversion) were significantly more likely to continue to abstain from smoking. [source]

PARTIAL IDENTIFICATION OF COUNTERFACTUAL CHOICE PROBABILITIES,

INTERNATIONAL ECONOMIC REVIEW, Issue 4 2007
Charles F. Manski
This article shows how to predict counterfactual discrete choice behavior when the presumed behavioral model partially identifies choice probabilities. The simple, general approach uses observable choice probabilities to partially infer the distribution of types in the population and then applies the results to predict behavior in unrealized choice settings. Two illustrative applications are given. One assumes only that persons have strict preferences. The other assumes strict preferences and utility functions that are linear in attribute bundles, with no restrictions on the shape of the distribution of preference parameters. [source]

Preference solutions of probability decision making with rim quantifiers

INTERNATIONAL JOURNAL OF INTELLIGENT SYSTEMS, Issue 12 2005
Xinwang Liu
This article extends the quantifier-guided aggregation method to include probabilistic information. A general framework for the preference solution of decision making under an uncertainty problem is proposed, which can include decision making under ignorance and decision making under risk methods as special cases with some specific preference parameters. Almost all the properties, especially the monotonicity property, are kept in this general form. With the generating function representation of the Regular Increasing Monotone (RIM) quantifier, some properties of the RIM quantifier are discussed. A parameterized RIM quantifier to represent the valuation preference for probabilistic decision making is proposed. Then the risk attitude representation method is integrated in this quantifier-guided probabilistic decision making model to make it a general form of decision making under uncertainty. © 2005 Wiley Periodicals, Inc. Int J Int Syst 20: 1253,1271, 2005. [source]

International dynamic risk sharing

JOURNAL OF APPLIED ECONOMETRICS, Issue 1 2008
Giuseppe Cavaliere
In this paper we examine the implications of international risk sharing among a set of countries in the presence of market frictions which complicate the instantaneous adjustment to the first-order conditions. We suggest approximating the consumption streams of countries belonging to the risk sharing coalition in terms of a disequilibrium dynamic model embodying forward-looking adjustment. Econometric methods for estimating and testing the model are discussed. Empirical analysis of a set of core European countries suggests that once preference parameters are allowed to vary across countries, we are able to identify a group of nations that share risks against idiosyncratic permanent income shocks. The equilibrium position, however, is reached after a long adjustment period. Copyright © 2008 John Wiley & Sons, Ltd. [source]