In this paper it is shown how false operator responses due to missing or uncertain data can be sig-niicantly reduced or eliminated. Perhaps the most well-known of such eeects are the variousèdge eeects' which invariably occur at the edges of the input data set. Further, it is shown how operators having a higher degree of selectivity and higher tolerance against noise can be constructed using si...

The relation between L 2 ?gain and nite dimensional nonlinear observers is investigated. It is shown that suitable choices of supply rates render nite dimensional minimum energy, minimum energy certainty-equivalence, and minmax observers for nonlinear systems. The gains of these observers are analogous of the error covariance of the Kalman-Filter. They are derived by solving explicitly Hamilton...

At least since Keynes (1935), many economists have had the intuition that the marginal propensity to consume out of wealth declines as wealth increases. Nonetheless, standard perfect-certainty and certainty equivalent versions of intertemporal optimizing models of consumption imply a marginal propensity to consume that is unrelated to the level of household wealth. We show that adding income un...

We present a generic framework to model and solve real-world constraint problems with incomplete or inconsistent data. Such problems are often simplified at present to tractable deterministic models, in order to find a solution; so doing, however, can lead us to solve the wrong problem or to introduce unsatisfiability because of the approximations made. The certainty closure framework addresses...

Many violations of the Independence axiom of Expected Utility can be traced to subjects’ attraction to risk-free prospects. The key axiom in this paper, Negative Certainty Independence (Dillenberger, 2010), formalizes this tendency. Our main result is a utility representation of all preferences over monetary lotteries that satisfy Negative Certainty Independence together with basic rationality ...

in this paper we consider a resource allocation problem for a satellite network, where variations of fading conditions are added to those of traffic load. Since the capacity of the system is finite and divided in finite portions, the resource allocation problem reveals to be a discrete stochastic programming problem one, which is typically NP-Hard. We propose a new approach based on the minimiz...

The optimized certainty equivalent (OCE) is a decision theoretic criterion based on a utility function, that was first introduced by the authors in 1986. This paper re-examines this fundamental concept, studies and extends its main properties, and put it in perspective to recent concepts of risk measures. We show that the negative of the OCE naturally provides a wide family of risk measures tha...

Attitude toward risk is an important factor determining patient preferences. Risk behavior has been shown to be strongly dependent on the perception of the outcome as either a gain or a loss. According to prospect theory, the reference point determines how an outcome is perceived. However, no theory on the location of the reference point exists, and for the health domain, there is no direct evi...