The unpredictability of returns counts as a stylized fact of financial markets. To reproduce this fact, modelers usually implement noise terms - a method with several downsides. Above all, systematic patterns are not eliminated but merely blurred. The present article introduces a model in which...

Making decisions under uncertainty is at the core of human decision-making, particularly economic decision-making. In economics, a distinction is often made between quantifiable uncertainty (risk) and un-quantifiable uncertainty (Knight, Uncertainty and Profit, 1921). However, this distinction...

We analyse the benefits and limitations of the integration of sourcing decisions into the operational route compilation task of a road-haulage company. A trucking company has to supply several customer sides. The demanded quantities are given. The trucking company has to decide which truck...

One of the most important economic strategic sectors in any economy is the electricity market. Its main feature is its oligopolistic character favoured by the returns to scale which act as an entry barrier. As a result, the energy generators can use their power market in order to increase their...

We are interested in forecasting bankruptcies in a probabilistic way. Specifically, we compare the classification performance of several statistical and machine-learning techniques, namely discriminant analysis (Altman's Z-score), logistic regression, least-squares support vector machines and...

This study, using original survey data of 10,000 individuals, analyzes the possible impacts of artificial intelligence (AI) and robotics on employment. The first interest of this study is to ascertain, from the viewpoint of workers, what types of worker characteristics are associated with the...

The information technology revolution has had dramatic effects on jobs and the labor market. Many routine and manual tasks have been automated, replacing workers. By contrast, new technologies complement non-routine, cognitive, and social tasks, making work in such tasks more productive. These...

Rapid technological progress in artificial intelligence (AI) has been predicted to lead to mass unemployment, rising inequality, and higher productivity growth through automation. In this paper we critically re-assess these predictions by (i) surveying the recent literature and (ii)...

This paper offers a comparative analysis of the effectiveness of eight popular forecasting methods: univariate, linear, discriminate and logit regression; recursive partitioning, rough sets, artificial neural networks, and DEA. Our goals are: clarify the complexity-effectiveness balance of each...

Advanced machine learning has achieved extraordinary success in recent years. 'Active' operational risk beyond ex post analysis of measured-data machine learning could provide help beyond the regime of traditional statistical analysis when it comes to the 'known unknown' or even the 'unknown...