We propose a general framework for the analysis of dynamic optimization with risk-averse agents, extending Whittle's (Whittle, 1990) formulation of risk-sensitive optimal control problems to accommodate time-discounting. We show how, within a Markovian set-up, optimal risk-averse behavior is...

The use of context can considerably facilitate reasoning by restricting the beliefs reasoned upon to those relevant and providing extra information specific to the context. Despite the use and formalization of context being extensively studied both in AI and ML, context has not been much...

Commerce in information goods is one of the earliest emerging applications for intelligent agents in commerce. However, the fundamental characteristics of information goods mean that they can and likely will be offered in widely varying configurations. Participating agents will need to deal with...

Experimental and empirical findings suggest that non-pecuniary motivations play a significant role as determinants of taxpayers’ decision to comply with the tax authority and shape their perceptions and assessment of the tax code. By contrast, the canonical optimal income taxation model...