A rational logit dynamic for decision-making under uncertainty: well-posedness, vanishing-noise limit, and numerical approximation

Fuente: arXiv
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Auteurs principaux: Yoshioka, Hidekazu, Tsujimura, Motoh, Yoshioka, Yumi
Format: Preprint
Publié: 2024
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author Yoshioka, Hidekazu
Tsujimura, Motoh
Yoshioka, Yumi
author_facet Yoshioka, Hidekazu
Tsujimura, Motoh
Yoshioka, Yumi
contents The classical logit dynamic on a continuous action space for decision-making un-der uncertainty is generalized to the dynamic where the exponential function for the softmax part has been replaced by a rational one that includes the former as a special case. We call the new dynamic as the rational logit dynamic. The use of the rational logit function implies that the uncertainties have a longer tail than that assumed in the classical one. We show that the rational logit dynamic admits a unique measure-valued solution and the solution can be approximated using a fi-nite difference discretization. We also show that the vanishing-noise limit of the rational logit dynamic exists and is different from the best-response one, demon-strating that influences of the uncertainty tail persist in the rational logit dynamic. We finally apply the rational logit dynamic to a unique fishing competition data that has been recently acquired by the authors.
format Preprint
id arxiv_https___arxiv_org_abs_2402_13453
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle A rational logit dynamic for decision-making under uncertainty: well-posedness, vanishing-noise limit, and numerical approximation
Yoshioka, Hidekazu
Tsujimura, Motoh
Yoshioka, Yumi
Dynamical Systems
Systems and Control
The classical logit dynamic on a continuous action space for decision-making un-der uncertainty is generalized to the dynamic where the exponential function for the softmax part has been replaced by a rational one that includes the former as a special case. We call the new dynamic as the rational logit dynamic. The use of the rational logit function implies that the uncertainties have a longer tail than that assumed in the classical one. We show that the rational logit dynamic admits a unique measure-valued solution and the solution can be approximated using a fi-nite difference discretization. We also show that the vanishing-noise limit of the rational logit dynamic exists and is different from the best-response one, demon-strating that influences of the uncertainty tail persist in the rational logit dynamic. We finally apply the rational logit dynamic to a unique fishing competition data that has been recently acquired by the authors.
title A rational logit dynamic for decision-making under uncertainty: well-posedness, vanishing-noise limit, and numerical approximation
topic Dynamical Systems
Systems and Control
url https://arxiv.org/abs/2402.13453