During the spring semester, in-person concerts, events and lectures that involve outside guests will not be held, per the university’s COVID-19 travel and visitor policy.
Tuesday, April 13, 2021 at 4:15pm to 5:15pmVirtual Event
Shaowei Ke, University of Michigan
Abstract: We provide an axiomatic foundation for a class of neural-network models applied to decision-making under risk, called neural-network expected utility (NEU) models. Motivated by classic experimental findings, we weaken the independence axiom in a novel way. We show how to use simple neurons, referred to as behavioral neurons, in NEU models to capture behavioral effects, such as the certainty effect and reference dependence. Empirically, we show that some simple NEU model with natural interpretation predicts better than existing theories, such as expected utility theory and cumulative prospect theory out of sample, and that behavioral neurons help improve NEU models’ performance.
If you are interested participating in this seminar, please email Ulrike Kroeller at firstname.lastname@example.org for Zoom information.