The Wisdom of Crowds describes the fact that aggregating a group’s estimate regarding unknown values is often a better strategy than selecting even an expert’s opinion. The efficacy of this strategy, however, depends on biases being nonsystematic and everyone being able to make a meaningful assessment. In situations where these conditions do not hold, expertise seems more likely to produce the ...

Practical reasoning, reasoning about what actions should be chosen, is highly dependent both on the individual values of the agent concerned and on what others choose to do. We discuss how value based argumentation about what to do can be performed without making assumptions about the preferences of the other agents. We then show how expected utility calculations relate to the valuebased argume...

In addition to purely practical values, there are cognitive values which figure in scientific deliberations. One way of introducing cognitive values is to consider the cognitive value that accrues to the act of accepting a hypothesis. Although such values may have a role to play in the matter of theory acceptance, this does not exhaust their significance in scientific decision-making. This pape...

We consider an investor maximizing his expected utility from terminal wealth with portfolio decisions based on the available information flow. This investor faces the opportunity to acquire some additional initial information G. His subjective fair value of this information is defined as the amount of money that he can pay for G such that this cost is balanced out by the informational advantage...

We analyze a symmetric Bayesian game in which two players individually contribute to fund a discrete public good; contributions are refunded if they do not meet a threshold set by the seller of the good. We provide a general characterization of symmetric equilibrium strategies that are continuous and nonconstant over the set of values for which the good has a positive chance of provision. Piece...

In credit risk management, migration or transition matrices are major inputs for risk management, Credit Value-at-Risk or derivative pricing. After reviewing distance measures for migration matrices we propose some new directed difference indices to measure changes in migration behavior in a more risk-sensitive way. We quantify the changes of the classical distance measures and the new distance...

There are interdependences between the market economy and more general values in modern European societies. In this article, I will discuss the contribution of both theory and more practical morals of the market. Another source of influence on values is the unselfishness demanded by religion and honored by most philosophers. I will discuss whether this demand is positive. There is a danger of t...

An adequate representation and a feasible aggregation procedure of evidence represents a challenging problem in many disciplines. The right representation can help scientists discuss and present the results of their findings and, if it is simple enough, it can be useful for practitioners to base their decisions on improvement implementations. The aggregation strengthens confidence in comparison...

In a Markovian stochastic volatility model, we consider financial agents whose investment criteria are modelled by forward exponential performance processes. The problem of contingent claim indifference valuation is first addressed and a number of properties are proved and discussed. Special attention is given to the comparison between the forward exponential and the backward exponential utilit...

Transaction Utility theory was propounded by Thaler to explain that the value derived by a customer from an exchange consists of two drivers: Acquisition Utilities and Transaction utilities. Acquisition utility represents the economic gain or loss from the transaction. Where as transaction utility is associated with purchase or (sale) and represents the pleasure (or displeasure) of the financia...