scholarly journals Optimizing motor-timing decision via adaptive risk-return control

2020 ◽  
Author(s):  
Qirui Yao ◽  
Sakaguchi Yutaka

Human’s ability of optimal motor-timing decision remains debated. The optimality seems context-dependent as the sub-optimality was often observed for tasks with different gain/loss configurations: people achieved optimality with symmetric gain configuration but not with asymmetric configuration. In the current study, we designed a temporal decision-making task where participants could adjust the sensitivity parameter (i.e., risk-return trade-off) of the gain function, in order to testify whether people could optimize the responses for asymmetric gain configuration by adjusting the sensitivity parameter. Participants were asked to click a point within a certain spatial region at a specified timing, where the click timing determined the reward whilst the click position determined the sensitivity parameter. We prepared three types of gain functions (symmetric, risk-after and risk-before conditions) and tested whether or not the participants achieved Bayesian optimality irrespective of gain structure. Most participants’ performance reached optimality not only in the symmetric condition but also in the asymmetric condition, albeit some discrepancies from optimality observed in the risk-before condition. This confirmed that people could achieve Bayesian optimality even for asymmetric gain configuration. We argued that the adaptive risk-return is beneficial for the performance optimality.

CFA Digest ◽  
2005 ◽  
Vol 35 (4) ◽  
pp. 71-72
Author(s):  
Frank T. Magiera
Keyword(s):  

Author(s):  
Bahador Bahrami

Evidence for and against the idea that “two heads are better than one” is abundant. This chapter considers the contextual conditions and social norms that predict madness or wisdom of crowds to identify the adaptive value of collective decision-making beyond increased accuracy. Similarity of competence among members of a collective impacts collective accuracy, but interacting individuals often seem to operate under the assumption that they are equally competent even when direct evidence suggest the opposite and dyadic performance suffers. Cross-cultural data from Iran, China, and Denmark support this assumption of similarity (i.e., equality bias) as a sensible heuristic that works most of the time and simplifies social interaction. Crowds often trade off accuracy for other collective benefits such as diffusion of responsibility and reduction of regret. Consequently, two heads are sometimes better than one, but no-one holds the collective accountable, not even for the most disastrous of outcomes.


Mathematics ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 413
Author(s):  
David Vidal-Tomás ◽  
Ana M. Ibáñez ◽  
José E. Farinós

We analyze the economic efficiency of the cryptocurrency market after the launch of Bitcoin futures by means of the Data Envelopment Analysis and Malmquist Indexes. Our results show that the introduction of Bitcoin futures did not affect the economic efficiency of the cryptocurrency market. However, we observe that Bitcoin obtained the highest risk-return trade-off due to its liquidity compared to the rest of cryptocurrencies. Therefore, our paper underlines the support of investors on Bitcoin to the detriment of the rest of cryptocurrencies.


2020 ◽  
Vol 45 (7) ◽  
pp. 5833-5847 ◽  
Author(s):  
Syed Abou Iltaf Hussain ◽  
Binayak Sen ◽  
Archisman Das Gupta ◽  
Uttam Kumar Mandal

2007 ◽  
Vol 14 (6) ◽  
pp. 971-986 ◽  
Author(s):  
Charlotte Christiansen ◽  
Juanna Schröter Joensen ◽  
Helena Skyt Nielsen

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