Many real-world reinforcement learning problems have a hierarchical nature, and often exhibit some degree of partial observability. While hierarchy and partial observability are usually tackled separately (for instance by combining recurrent neural networks and options), we show that addressing both problems simultaneously is simpler and more efficient in many cases. More specifically, we make ...

We consider series solutions for the location of the optimal exercise boundary of an American option close to expiry. By using Monte Carlo methods, we compute the expected value of an option if the holder uses the approximate location given by such a series as his exercise strategy, and compare this value to the actual value of the option. This gives an alternative method to evaluate approximat...

This paper studies optimal relational contracts when the value of the relationship between contracting parties is not commonly known. I consider a principal-agent setting where the principal has persistent private information about her outside option. I show that if the principal has the bargaining power, she wants to understate her outside option to provide strong incentives and then renege on...

In this study, we propose that the ability to recycle may lead to increased resource usage compared to when a recycling option is not available. Supporting this hypothesis, our first experiment shows that consumers used more paper while evaluating a pair of scissors when the option to recycle was provided (vs. not provided). In a follow-up field experiment, we find that the per person restroom ...

results all the frames that were examined leaded to significant framing effects: when the asia disease problem was described in a positive frame, the participants preferred the conservative frame than the risky one, while if in a negative frame, the preference reversed (p < 0.01). if the drug effect was described as “of 100 patients taking this kind of medicine, 70 patients became better”, peop...

Multiple-choice items are a mainstay of achievement testing. The need to adequately cover the content domain to certify achievement proficiency by producing meaningful precise scores requires many high-quality items. More 3-option items can be administered than 4or 5-option items per testing time while improving content coverage, without detrimental effects on psychometric quality of test score...

This article reports the findings of an experiment designed to evaluate the effect of four questionnaire formats on the willingness of drivers convicted of drunken driving to admit to this socially undesirable behaviour. Four samples of convicted drunk drivers each received a different version of a mail questionnaire about driving behaviour and attitudes. Two versions of the questionnaire inclu...