Ambiguity aversion in multi-armed bandit problems

In multi-armed bandit problems, information acquired from experimentation is valuable because it tells the agent whether to select a particular option again in the future. This article tests whether people undervalue this information because they are ambiguity averse, or have a distaste for uncertainty about the average quality of each alternative. It is shown that ambiguity averse agents have lower than optimal Gittins indexes, appearing to undervalue information from experimentation, but are willing to pay more than ambiguity neutral agents to learn the true mean of the payoff distribution, appearing to overvalue objectively given information. This prediction is tested with a laboratory experiment that elicits a Gittins index and a willingness to pay on six two-armed bandits. Consistent with the predictions of ambiguity aversion, the Gittins indexes are significantly lower than optimal and willingnesses to pay are significantly higher than optimal.     

Coloring vertices of claw-free graphs in three colors

We study the computational complexity of the vertex 3-colorability problem in the class of claw-free graphs. Both the problem and the class received much attention in the literature, separately of each other. However, very little is known about the 3-colorability problem restricted to the class of claw-free graphs beyond the fact the problem is NP-complete under this restriction. In this paper we first strengthen this negative fact by revealing various further restrictions under which the problem remains NP-complete. Then we derive a number of positive results that deal with polynomially solvable cases of the problem in the class of claw-free graphs.     

Stochastic metafrontiers

ABSTRACT

We consider the case of production units arranged into a number of groups. All units within a group choose output–input combinations from the same production possibilities set that is represented by a stochastic frontier model. The metafrontier is the envelope of the group-specific frontiers. We are interested in the metafrontier distance, which is the amount by which the group-specific frontier lies below the metafrontier.

Previous work has measured the metafrontier distance using the deterministic portion of the frontier. In a stochastic frontier model, this is not appropriate. We show how to evaluate the metafrontier distance, and we demonstrate the empirical relevance of this issue.     

A Tiered Framework for Risk‐Relevant Characterization and Ranking of Chemical Exposures: Applications to the National Children's Study (NCS)

A challenge for large‐scale environmental health investigations such as the National Children's Study (NCS), is characterizing exposures to multiple, co‐occurring chemical agents with varying spatiotemporal concentrations and consequences modulated by biochemical, physiological, behavioral, socioeconomic, and environmental factors. Such investigations can benefit from systematic retrieval, analysis, and integration of diverse extant information on both contaminant patterns and exposure‐relevant factors. This requires development, evaluation, and deployment of informatics methods that support flexible access and analysis of multiattribute data across multiple spatiotemporal scales. A new “Tiered Exposure Ranking” (TiER) framework, developed to support various aspects of risk‐relevant exposure characterization, is described here, with examples demonstrating its application to the NCS. TiER utilizes advances in informatics computational methods, extant database content and availability, and integrative environmental/exposure/biological modeling to support both “discovery‐driven” and “hypothesis‐driven” analyses. “Tier 1” applications focus on “exposomic” pattern recognition for extracting information from multidimensional data sets, whereas second and higher tier applications utilize mechanistic models to develop risk‐relevant exposure metrics for populations and individuals. In this article, “tier 1” applications of TiER explore identification of potentially causative associations among risk factors, for prioritizing further studies, by considering publicly available demographic/socioeconomic, behavioral, and environmental data in relation to two health endpoints (preterm birth and low birth weight). A “tier 2” application develops estimates of pollutant mixture inhalation exposure indices for NCS counties, formulated to support risk characterization for these endpoints. Applications of TiER demonstrate the feasibility of developing risk‐relevant exposure characterizations for pollutants using extant environmental and demographic/socioeconomic data.     

An Examination of the Communication Styles Associated with Psychopathy and Their Influence on Observer Impressions

Psychopathic individuals are characterized as “intra-species predators”—callous, impulsive, aggressive, and proficient at interpersonal manipulation. For example, despite their high risk for re-offending, psychopathic offenders often receive early release on parole. While reputed to be social chameleons, research suggests that even naive observers can accurately infer high levels of psychopathic traits in others with very brief exposures to behavior, but accuracy degrades with extended observation. We utilized a lens model approach to examine the communication styles (emotional facial expressions, body language, and verbal content) of offenders varying in levels of psychopathic traits using “thin slice” video clips of psychological assessment interviews and to reveal which cues observers use to inform their evaluations of psychopathy. Psychopathic traits were associated with more (a) Duchenne smiles, (b) negative (angry) emotional language, and (c) hand gestures (illustrators). Further, psychopathy was associated with a marked behavioral incongruence; when individuals scoring high in psychopathic traits engaged in Duchenne smiles they were also more likely to use angry language. Naïve observers relied on each of these valid behavioral signals to quickly and accurately detect psychopathic traits. These findings provide insight into psychopathic communication styles, opportunities for improving the detection of psychopathic personality traits, and may provide an avenue for understanding successful psychopathic manipulation.     

Life Satisfaction in Australia: Evidence from Ten Years of the HILDA Survey

Employing data from the Household, Income and Labour Dynamics in Australia survey, this paper examines the level, determinants and distribution of self-reported life satisfaction, as well as the prevalence and severity of dissatisfaction in Australia over the period 2001–2010. Against most objective measures Australia’s economic performance during this period was exemplary. Yet our results indicate a steady decline in life satisfaction from 2003 onwards, as well as a diminishing gap between the life satisfaction of males and females. Results also suggest that inequality in life satisfaction has generally declined. Geographic heterogeneity in the distribution of life satisfaction is apparent, and a number of socio-economic and demographic factors are found to serve an important role in determining an individual’s level of life satisfaction. Measures of the extent of dissatisfaction reveal an encouraging downward trend and provide policy makers with an alternative perspective from which to assess societal welfare.