Utility Research Articles

HUSM: High utility subgraph mining in single graph databases

Frequent subgraph mining (FSM) is a crucial research area with diverse applications. However, traditional FSM treats all subgraphs as equally important. In practical applications, some subgraphs may be frequent but not very valuable, while others may be infrequent but highly valuable. To address this issue, we introduce utility pattern mining into single graph mining, enabling the discovery of meaningful patterns based on user's interest rather than relying solely on support. We define a utility function in single graph databases and formally define the problem of high utility subgraph mining (HUSM). In the face of several challenges posed by this new problem, such as the absence of downward closure property and a large number of candidates, we design several utility upper bounds that satisfy the downward closure property. We then develop a HUSM algorithm to efficiently mine all high utility subgraphs in single graph databases. Additionally, we design a lossless concise representation for high utility subgraphs, which has fewer instances than the total number of high utility subgraphs and can derive all of them, making the mining results more representative. The experimental results demonstrate that our method exhibits excellent performance, and the concise representation plays a significant role in simplifying the mining results.

Calculating premium principles from the mode of a unimodal weighted distribution

Abstract The theory of utility is a well-known method of constructing insurance premiums (see e.g., Newton et al. (1986) Actuarial Mathematics. Itasca, Illinois: The Society of Actuaries.). Furman and Zitikis ((2008) Insurance: Mathematics and Economics, 42, 459–465.) proposed an alternative method using the mean value of a weighted random variable. According to this approach, for various choices of weighting, popular premiums such as net premium, modified variance premium, Esscher premium, and Kamps premium are obtained. On the other hand, some premiums cannot be obtained with this method, such as the premium of the exponential principle. In this paper, we provide a complementary theory by introducing a family of unimodal weighted distributions for which the mode is a premium principle.

Industry 4.0 and Lean Manufacturing, using the MAUT Method

Industry 4.0 covers a wide range of areas, such as production processes, efficiency, data management, consumer relationships, and competitiveness. It is also becoming a topic of academic study, with researchers and scholars exploring various questions related to this revolution. Furthermore, the text mentions the Toyota Production System, which promotes efficiency and effective communication in production operations and introduces the concept of Lean Manufacturing, which aims to reduce costs and increase efficiency. The integration of Industry 4.0 with Lean Manufacturing is referred to as “Lean 4.0”. The method used in this article was a questionnaire sent to manufacturing companies in southern Brazil and analyzed the data obtained through the Multi-Attribute Utility Theory (MAUT), which is presented as a decision-making tool that allows comparing alternatives taking into account multiple criteria. The conclusions of this study show that both the views of senior management and those surveyed consider that the companies involved in this research will be in 5 years, with their Industry 4.0 well developed. On the Lean Manufacturing side, considering only the view of those surveyed, they consider that the companies involved in this study will be in 5 years, with Lean Manufacturing quite developed. The practical contribution of this study shows that the companies participating in the study are committed to adopting advanced manufacturing technologies and practices. This conclusion is important because it indicates that companies are aware of the opportunities and challenges of Industry 4.0 and Lean Manufacturing.

WHEN NO PRICE IS RIGHT

Abstract In this paper, we show how to represent a non-Archimedean preference over a set of random quantities by a nonstandard utility function. Non-Archimedean preferences arise when some random quantities have no fair price. Two common situations give rise to non-Archimedean preferences: random quantities whose values must be greater than every real number, and strict preferences between random quantities that are deemed closer in value than every positive real number. We also show how to extend a non-Archimedean preference to a larger set of random quantities. The random quantities that we consider include real-valued random variables, horse lotteries, and acts in the theory of Savage. In addition, we weaken the state-independent utility assumptions made by the existing theories and give conditions under which the utility that represents preference is the expected value of a state-dependent utility with respect to a probability over states.

Dynamic asset allocation and consumption with the indirect utility function

Articles about asset allocation rely on the direct utility as a primitive to model the risk appetite of investors and to derive optimal asset allocation and consumption. In a simple setting, we show that the same problem can be solved where the indirect utility function is used as a primitive. Our approach offers various advantages. The indirect utility function measures the satisfaction at optimum and perfectly describes the risk appetite of investors. It is a function of wealth whereas the direct utility function depends on consumption.

Multistep short‐term wind speed prediction with rank pooling and fast Fourier transformation

AbstractShort‐term wind speed prediction is essential for economical wind power utilization. The real‐world wind speed data are typically intermittent and fluctuating, presenting great challenges to existing shallow models. In this paper, we present a novel deep hybrid model for multistep wind speed prediction, namely, LR‐FFT‐RP‐MLP/LSTM (linear fast Fourier transform rank pooling multiple‐layer perceptron/long short‐term memory). Our hybrid model processes the local and global input features simultaneously. We leverage RP for the local feature extraction to capture the temporal structure while maintaining the temporal order. Besides, to understand the wind periodic patterns, we exploit FFT to extract global features and relevant frequency components in the wind speed data. The resulting local and global features are, respectively, integrated with the original data and are fed into an MLP/LSTM layer for the initial wind speed predictions. Finally, we leverage a linear regression layer to collaborate these initial predictions to produce the final wind speed prediction. The proposed hybrid model is evaluated using real wind speed data collected from 2010 to 2020, demonstrating superior forecasting capabilities when compared with state‐of‐the‐art single and hybrid models. Overall, this study presents a promising approach for improving the accuracy of wind speed forecasting.

Impact of the Local Dynamics on Exit Choice Behaviour in Evacuation Model

This study investigated the interplay between exit selection models and local pedestrian movement patterns within floor field frameworks. Specifically, this investigation analysed the performance of a multinomial logit exit choice model, incorporating both expected utility theory and cumulative prospect theory frameworks when coupled with three distinct local-level pedestrian movement models (FF-Von Neumann, FF-Moore, and NSFF). The expected utility theory framework considers the deterministic component as a linear relationship, while the cumulative prospect theory framework further considers the decision-maker’s risky attitudes by transforming objective terms into subjective terms using a power value function. The core objective was to comprehend how local movement dynamics, as represented by the floor field models, influence decision-making during exit selection. Comparative analyses revealed intriguing variations between the three local models, despite their shared expected utility theory-based exit choice framework. These discrepancies stemmed from the diverse pedestrian trajectory behaviours generated by each model. Consequently, these local dynamics impacted the decision-maker’s assessment of critical factors, such as the number of evacuees close to the decision-maker (NCDM) and the number of evacuees close to an exit (NCE), which the exit choice model incorporates. These assessments, in turn, significantly affected higher-level decision-making. The integration of the three models with the multinomial logit exit choice model, using either cumulative prospect theory and expected utility theory frameworks, further strengthened the observed bilateral relationship. While the specific nature of this relationship varied depending on the chosen framework and its implementation details, these consistent findings demonstrate the robustness of the results. This reinforced the influence of local-level pedestrian dynamics on higher-level exit selection, highlighting the importance of accurate crowd dynamics modelling, especially when advanced exit choice models consider local movement factors.

Navigating Risk Aversion and Regret

This study investigates the distinctive modeling of regret utility when compared with common utility. I also introduce the interplay between common utility and regret utility. Using this model, I examine the differences in decision making, which encompasses issues such as risk sharing and principal–agent dilemmas. Regret utility is set so that its risk aversion shows common utility’s prudence (i.e., downside risk aversion). This paper reveals, both qualitatively and quantitively and with a concrete model, that regret utility leads to a more balanced and optimal ratio of agent payouts to outputs compared with common utility, meaning when major outputs are kept by principal, there are relatively larger agent payouts, and when major outputs are kept by the agent, there are relatively smaller agent payouts. This means that regret makes a more balanced distribution, and regret utility is more conservative (not biased). In addition, preliminary empirical research was performed in which people were asked risk preference or averseness questions, and their risk averseness was calculated by using the CRRA (Constant Relative Risk Aversion) utility function. The regret condition leads to a more conservative attitude. Furthermore, the regret model can be used in other areas, like in conservative investment portfolio optimization.

On equilibrium determinacy in overlapping generations models with money

This paper provides a detailed analysis of the local determinacy of monetary and non-monetary steady states in Tirole (1985)’s classical two-period overlapping generations model with capital and production. We show that the sufficient condition for local determinacy in endowment economies provided by Scheinkman (1980) does not generalize to models with production: there are robust examples with arbitrary utility functions in which the non-monetary steady state is locally determinate or indeterminate. In contrast, the monetary steady state is locally determinate under fairly weak conditions.

An optimized cooperative data transmission scheme in relay‐enabled cellular communication networks

SummaryCooperative transmission is of great significance in data transmission and resource schedule in mobile cellular communication networks. To attain the desired network transmission performance objectives over the whole cellular network system, we propose an appropriate cooperative data transmission scheme to optimize the data delivery efficiency in terms of the transmission time consumption for each and every transmission group. The proposed transmission optimization scheme includes the tasks of determining the transmission group, allocating the channel rate resource, specifying the cooperative transmission mechanism, and performing resource allocation and schedule as well. Firstly, we propose a utility function based rate allocation scheme to optimize the channel rate resource utilization for all those transmission groups over the cellular communication network. Based on it, we further present a cooperative data transmission scheme to deal with the data delivery and reception for all those subgroups with high efficiency over the whole network system. Particularly, we propose a resource efficiency function‐based coordination scheduling (EFCS) scheme to conduct the cooperative data transmission and resource schedule as well for each transmission group within the network. The EFCS scheme facilitates to determine the subgroups for schedule over each scheduling cycle, which can produce the best data transmission efficiency across both the direct and cooperative transmission hop. Both the theoretical analysis and the simulation evaluation results verify the superior performance of our proposed cooperative data transmission scheme.

Eliciting risk preferences in an artefactual field experiment via replication and an alternative approach

AbstractThis paper investigates risk preferences using an artefactual field experiment conducted with a non-standard subject pool of farmers in Ghana. I introduce an alternative methodology for studying preferences following replication of a seminal risk elicitation procedure by Binswanger (Am J Agric Econ 62(3):395407, 1980). An important feature of both approaches is that they are easy to understand and, hence, are particularly suitable for eliciting preferences among subjects with low levels of formal education. I successfully replicate Binswanger’s study, documenting how his original result of the moderate level of risk aversion for an average farmer can be generalized to a different country. However, using my alternative approach, whereby lotteries are presented in the loss domain, I find that half of my experimental subjects violated expected utility theory. This approach is of relevance to the current literature on studying risk preferences among subjects with poor literacy skills.

The substitution effect of financial and non-financial incentives at different income levels in physician recruitment: evidence from medical students in China

BackgroundUnderstanding how medical students respond to financial and non-financial incentives is crucial for recruiting health workers and attracting health talents in medical education. However, both incentives are integrated in working practice, and existing theoretical studies have suggested that various income levels may influence the substitution effect of both incentives, while the empirical evidence is lacking. Furthermore, little attention has been paid to the intrinsic motivation. This study aimed to explore the substitution effect of extrinsic incentives at different income levels, also taking intrinsic altruism into account.MethodsWe used the behavioral data from Zhang et al.’s experiments, which involved discrete choice experiments (DCEs) to assess the job preferences of medical students from six teaching hospitals in Beijing, China. The incentive factors included monthly income, work location, work environment, training and career development opportunities, work load, and professional recognition. Additionally, a lab-like experiment in the medical decision-making context was conducted to quantify altruism based on utility function. Furthermore, we separated the choice sets based on the actual income and distinguished the medical students on altruism. The willingness to pay (WTP) was used to estimate the substitution effect of incentives through conditional logit model.ResultsThere was a significant substitution effect between non-financial and financial incentives. As income increased, non-financial incentives such as an excellent work environment, and sufficient career development became relatively more important. The impact of the increase in income on the substitution effect was more pronounced among individuals with higher altruism. Concerning the non-financial incentive work environment, in contrast to the growth of 546 CNY (84 USD) observed in the low-altruism group, the high-altruism group experienced a growth of 1040 CNY (160 USD) in the substitution effect.ConclusionsThe increase in the income level exerted an influence on the substitution effect of non-financial incentives and financial incentives, especially in high-altruism medical students. Policymakers should attach importance to a favorable environment and promising career prospects on the basis of ensuring a higher income level. Medical school administrations should focus on promoting altruistic values in medical education, enhancing talent incentives and teaching strategies to encourage medical students to devote themselves to the medical professions.

Bayesian reliability acceptance sampling plans under interval censoring

. This work considers Bayesian reliability acceptance sampling plan (RASP) under interval censoring. It is considered that the consumer and manufacturer agree on a common lifetime distribution of the product. However, they differ in their assessment of the prior distributions and utility functions because of the adversarial nature of the consumer and manufacturer, but the manufacturer knows the consumer’s utility and prior. The consumer accepts or rejects a lot of products based on his/her own priors about the quality of the product and a utility function. If the consumer rejects the lot, the manufacturer gives additional information on lifetime based on a life test to update the consumer’s belief. The consumer decides on accepting or rejecting the lot based on updated information. The life test is conducted under an interval censoring scheme, where the decision on acceptance or rejection of the lot can be taken sequentially at pre-specified inspection times. The manufacturer’s task is to determine the optimal interval-censoring life testing plan which maximizes his/her utility. Last, we discuss a methodology where the manufacturer does not require knowledge of the consumer’s utility function and prior distribution for planning the life test.

Methodological bases for balanced development of the food supply of the population

A retrospective analysis of the economic theories of marginal utility, general economic equilibrium, spatial economics, production factors, and organization theory was carried out from the position of forming the methodological basis for the emergence of the theory of balanced development of food supply for the population. The substantive aspects of the critical concepts of the identified theories are detailed in their influence on the formation and formation of the methodology for food supply to the population, including maintaining a balanced and equilibrium state in the conditions of continuous influence of external factors on food systems. For each identified theory, provisions have been established that determine the relationship with the methodology of the area under study. It has been established that the emergence of the theory and methods of balanced development of food supply for the population is a natural stage in the evolution of economic science in the context of increasing the role and importance of man in the modern economy. The methodological grounds identified are the need to achieve and maintain a balanced human diet, ensure coordination and maintain a balance of social and economic interests of consumers and food producers, ensure a balanced state of food production and consumption, maintain a balance of resource capabilities and future food needs of people, prevent the emergence of imbalances in the food sector. The work results can be used to develop new conceptual frameworks for developing the domestic agro-industrial complex and allow us to form a more holistic and detailed understanding of the specifics and features of achieving balanced agri-food sector development.

Less work and higher tax can raise wellbeing

AbstractWorktime has been falling slowly though real wages have risen dramatically. We show that in a general equilibrium model with CES utility and production functions, worktime falls with real wages if and only if the elasticity of substitution between consumption and leisure is less than that between capital and labour, but always rises with labour's income share and concerns with relative income. While a falling labour share may not reduce worktime due to market inflexibility, stronger income comparison increases inefficient overwork. Hence, more flexibility, higher income taxes and a basic income are needed to reduce working hours and raise social welfare.

Role of Economic Expansion, Energy Utilization and Urbanization on Climate Change in Egypt based on Artificial Intelligence

This study employs machine-learning algorithms (ML), specifically Random Forest (RF) and Gradient Boosting (GB), to assess the impact of various factors, including Gross Domestic Product (GDP) growth, urbanization, and energy consumption, on carbon dioxide emissions (CO2). The research underscores the RF algorithm's superior accuracy in determining independent variables' influence on CO2 emissions compared to GB. Furthermore, the study reveals that natural gas is the most significant contributor to CO2 emissions in Egypt, accounting for 49.7% of the total, followed closely by oil at 46.7%. The effect of other variables on CO2 emissions is relatively minimal. The findings also establish a strong positive correlation between the consumption of natural gas, oil, and coal and CO2 emissions in Egypt. Additionally, a negative relationship is observed between GDP growth, suggesting a positive trend in environmentally friendly economic expansion and urbanization on CO2 emissions in Egypt. This unique scenario, where urban expansion appears to have an inverse relationship with CO2 emissions, sets Egypt apart from many other countries and signifies a favorable environmental outcome.

Rethinking Pliny’s “Sicilian Crocus”: Ecophysiology, Environment, and Classical Texts

AbstractClassical scholars have long held that the saffron in widespread use throughout the ancient Mediterranean was Crocus sativus (Iridaceae), a sterile triploid descendant of the wild Crocus cartwrightianus, and indeed use of Crocus sativus in antiquity has been extensively borne out both by iconographic and phylogenetic studies. Two principal scholars of the Roman world, Dioscorides the physician and Pliny the natural historian, disagreed radically over the virtues and commercial value of saffron crocus from Sicily, with one praising its quality, and the other excoriating it. This study draws on ecophysiology, classical texts, environmental archeology, and phytochemistry to explain this disagreement and its implications. It explores the potential impact of microclimate on crocus cultivation in the ancient Mediterranean and proposes a new species identification for Sicilian crocus: Crocus longiflorus. The identification of Crocus longiflorus as “Sicilian saffron” offers an important corrective to the assumption that Crocus sativus was the sole crocus species of commercial value in the ancient Mediterranean and renews attention to the economic potential and utility of an indigenous southern Italian species overlooked in classical and later scholarship.

Introduction of the Experimental Setup for the Investigation of the Novel Selective Melt Dispersion (SMD): A Directed Energy Deposition (DED) Process

This study focuses on developing an experimental setup to investigate the Selective Melt Dispersion (SMD), a Directed Energy Deposition (DED) process. SMD as a means of in-process joining (IPJ) aims to integrate components and assemblies during additive manufacturing, combining the advantages of various processes for eco-friendly and economical resource utilization. The research initially analyzed DED systems and defined requirements for subsystems and the overall system. Critical subsystems, including the energy source, material feed, and others, were sequentially developed, and a proof of concept involved building 20 stacked welded tracks, validated through micrograph analysis. The study concludes by evaluating and discussing the fulfillment of the defined requirements. The system comprises a centrally arranged vibration-assisted powder feed; a laterally arranged laser incidence at a 45° angle; a kinematic structure where all axes are arranged on the workpiece, so the powder supply does not require movement; and a shield gas supply.

Implications of Context Effects in Consumer Utility Models for Optimal Product Design and Differentiation

Abstract Consumer choice models used in optimal product design typically ignore potential context effects by assuming the utility of each product is independent of the attributes of other products in the choice set. We characterize implications of context effects for profit-optimal designs by deriving the first-order conditions of the design problem under alternative utility formulations, and we propose a utility function that incorporates context effects and has well-defined optimal design solutions for all products in the choice set. We then conduct a discrete choice survey experiment of automobile options and find statistically significant context-effect parameters and superior out-of-sample prediction when context-effect parameters are used in both logit and mixed logit models. These results suggest that context effects can be important in engineering design contexts and have the potential to affect optimal design differentiation.

Preferences, risk neutrality and risk-sensitive MDPs

Preferences, risk neutrality and risk-sensitive MDPs