The Human Behavioral Response to Automated Trading

2017 ◽  
pp. 206-237
Author(s):  
Roumen Vragov
Keyword(s):  
Theoretical Model ◽  
Human Behavior ◽  
Behavioral Response ◽  
Laboratory Experiments ◽  
Human Subjects ◽  
Commodity Markets ◽  
Computer Algorithms ◽  
Behavioral Biases ◽  
Attitudes Towards Technology ◽  
Electronic Agents

The use of computer algorithms by human traders in markets has been steadily increasing. These electronic agents or proxies vary in terms of purpose and complexity, however, most of them first require some input on the part of the human trader and then perform the rest of the trading task autonomously. This paper proposes a theoretical model of human behavior that can be used to detect behavioral biases in commodity markets populated by humans and electronic proxies. The model's predictions are tested with the help of laboratory experiments with economically-motivated human subjects. Results suggests that the usefulness of automated trading is initially diminished by behavioral biases arising from attitudes towards technology. In some cases, the biases disappear with experience and in others they do not.

Detecting Behavioral Biases in Mixed Human-Proxy Online Auction Markets

2013 ◽  
Vol 4 (4) ◽  
pp. 60-79
Author(s):  
Roumen Vragov
Keyword(s):  
Theoretical Model ◽  
Human Behavior ◽  
Software Agents ◽  
Online Auction ◽  
Electronic Market ◽  
Auction Markets ◽  
Behavioral Biases ◽  
Bid Price

Currently many auction websites directly or indirectly provide support for the use of automated proxies or agents. Buyers can use proxies to monitor auctions and bid at the appropriate time and with the appropriate bid price, sellers can use proxies to set prices or negotiate deals. Proxy complexity varies, however most proxies first require some input on the part of the human trader and then perform the trading task autonomously. This paper proposes and tests a theoretical model of human behavior that can be used to detect behavioral biases in electronic market environments populated by humans and software agents. The paper also quantifies the effect of these biases on individual and business profits.

A Generic Model of Clinical Practice

2003 ◽  
Vol 42 (03) ◽  
pp. 203-211 ◽  
Author(s):  
J. L. G. Dietz ◽  
A. Hasman ◽  
P. F. de Vries Robbé ◽  
H. J. Tange
Keyword(s):  
Clinical Practice ◽  
Theoretical Model ◽  
Action Theory ◽  
Human Subjects ◽  
Shared Care ◽  
Patient Record ◽  
Generic Model ◽  
Problem Solver ◽  
Record Keeping ◽  
Process View

Summary Objectives: Many shared-care projects feel the need for electronic patient-record (EPR) systems. In absence of practical experiences from paper record keeping, a theoretical model is the only reference for the design of these systems. In this article, we review existing models of individual clinical practice and integrate their useful elements. We then present a generic model of clinical practice that is applicable to both individual and collaborative clinical practice. Methods: We followed the principles of the conversation-for-action theory and the DEMO method. According to these principles, information can only be generated by a conversation between two actors. An actor is a role that can be played by one or more human subjects, so the model does not distinguish between inter-individual and intra-individual conversations. Results: Clinical practice has been divided into four actors: service provider, problem solver, coordinator, and worker. Each actor represents a level of clinical responsibility. Any information in the patient record is the result of a conversation between two of these actors. Connecting different conversations to one another can create a process view with meta-information about the rationale of clinical practice. Such process view can be implemented as an extension to the EPR. Conclusions: The model has the potential to cover all professional activities, but needs to be further validated. The model can serve as a theoretical basis for the design of EPR-systems for shared care, but a successful EPR-system needs more than just a theoretical model.

Physics-Based Friction Model With Potential Application in Numerical Models for Tire-Road Traction

2017 ◽  
Author(s):  
Anahita Emami ◽  
Seyedmeysam Khaleghian ◽  
Chuang Su ◽  
Saied Taheri
Keyword(s):  
Theoretical Model ◽  
Friction Coefficient ◽  
Numerical Models ◽  
Surface Profile ◽  
Viscoelastic Behavior ◽  
Numerical Results ◽  
Experimental Results ◽  
Real Contact Area ◽  
Computer Algorithms ◽  
Road Surfaces

Good understanding of friction in tire-road interaction is of critical importance for vehicle dynamic control systems. Most of the friction models proposed to describe the friction coefficient between tire-treads and road surfaces have been developed based on empirical or semi-empirical relations that are not able to include many effective parameters involved in the tire-road interactions. Therefore, these models are just useful in limited conditions similar to the experiments, and do not accurately represent tire-road traction in numerical tire models. However, in last two decades, a few theoretical models have been developed to calculate the tire-road friction coefficient theoretically by considering both viscoelastic behavior of tire tread compounds and multi-scale interactions between tire treads and rough road surfaces. In this article, a novel physics-based model proposed by Persson has been investigated and used to develop computer algorithms for calculation of sliding friction coefficient between a tire tread compound and a rough substrate. The viscoelastic behavior of tread compound and the surface profile of rough counter surface are the inputs of this physics-based theoretical model. The numerical results of the model have been compared with the experimental results obtained from a dynamic friction tester designed and built in the Center for Tire Research (CenTire). Good agreement between numerical results of theoretical model and experimental results has been found at intermediate range of slip velocities considering the effect of adhesion and shearing in the real contact area in addition to hysteresis friction due to internal energy dissipation in the tire tread compound.

scholarly journals RECOGNIZING BEHAVIOR IN HAND-EYE COORDINATION PATTERNS

2009 ◽  
Vol 06 (03) ◽  
pp. 337-359 ◽  
Author(s):  
WEILIE YI ◽  
DANA BALLARD
Keyword(s):  
Human Behavior ◽  
Human Subjects ◽  
Eye Gaze ◽  
Complex Activity ◽  
Bayes Network ◽  
Human Computer Interfaces ◽  
Hand Eye Coordination ◽  
Constructive Models ◽  
The Moment ◽  
Coordination Patterns

Modeling human behavior is important for the design of robots as well as human-computer interfaces that use humanoid avatars. Constructive models have been built, but they have not captured all of the detailed structure of human behavior such as the moment-to-moment deployment and coordination of hand, head and eye gaze used in complex tasks. We show how this data from human subjects performing a task can be used to program a dynamic Bayes network (DBN) which in turn can be used to recognize new performance instances. As a specific demonstration we show that the steps in a complex activity such as sandwich making can be recognized by a DBN in real time.

Making the Most of Your Regret: Workers’ Relocation Decisions in On-Demand Platforms

2020 ◽  
Author(s):  
Zhong-Zhong Jiang ◽  
Guangwen Kong ◽  
Yinghao Zhang
Keyword(s):  
System Performance ◽  
Financial Incentives ◽  
Laboratory Experiments ◽  
Policy Design ◽  
Working Hours ◽  
Problem Definition ◽  
Analytical Models ◽  
Behavioral Biases ◽  
On Demand ◽  
Regret Aversion

Problem definition: We have witnessed a rapid rise of on-demand platforms, such as Uber, in the past few years. Although these platforms allow workers to choose their own working hours, they have limited leverage in maintaining availability of workers within a region. As such, platforms often implement various policies, including offering financial incentives and/or communicating customer demand to workers in order to direct more workers to regions with shortage in supply. This research examines how behavioral biases such as regret aversion may influence workers’ relocation decisions and ultimately the system performance. Academic/practical relevance: Studies on on-demand platforms often assume that workers are rational agents who make optimal decisions. Our research investigates workers’ relocation decisions from a behavioral perspective. A deeper understanding of workers’ behavioral biases and their causes will help on-demand platforms design appropriate policies to increase their own profit, worker surplus, and the overall efficiency of matching supply with demand. Methodology: We use a combination of behavioral modeling and controlled laboratory experiments. We develop analytical models that incorporate regret aversion to produce theoretical predictions, which are then tested and verified via a series of controlled laboratory experiments. Results: We find that regret aversion plays an important role in workers’ relocation decisions. Regret-averse workers are more willing to relocate to the supply-shortage zone than rational workers. This increased relocation behavior, however, is not sufficient to translate to a better system performance. Platform interventions, such as demand information sharing and dynamic wage bonus, can help further improve the system. We find that workers’ regret-aversion behavior may lead to an increased profit for the platform, a higher surplus for the workers, and an improved demand-supply matching efficiency, thus benefiting the entire on-demand system. Managerial implications: Our research emphasizes the importance and necessity of incorporating workers’ behavioral biases such as regret aversion into the policy design of on-demand platforms. Policies without considering the behavioral aspect of workers’ decision may lead to lost profit for the platform and reduced welfare for workers and customers, which may ultimately hurt the on-demand business.

scholarly journals DOES INFLATION TARGETING MATTER? AN EXPERIMENTAL INVESTIGATION

2016 ◽  
Vol 22 (2) ◽  
pp. 362-401 ◽  
Author(s):  
Camille Cornand ◽  
Cheick Kader M'baye
Keyword(s):  
Central Bank ◽  
Economic Activity ◽  
Laboratory Experiments ◽  
Inflation Targeting ◽  
Human Subjects ◽  
New Keynesian ◽  
Macroeconomic Performance ◽  
Inflation Target ◽  
Keynesian Model ◽  
Inflation Stabilization

We use laboratory experiments with human subjects to test the relevance of different inflation-targeting regimes. In particular and within the standard New Keynesian model, we evaluate to what extent communication of the inflation target is relevant to the success of inflation targeting. We find that if the central bank cares only about inflation stabilization, announcing the inflation target does not make a difference in terms of macroeconomic performance compared with a standard active monetary policy. However, if the central bank also cares about the stabilization of economic activity, communicating the target helps to reduce the volatility of inflation, interest rate, and output gap, although their average levels are not affected. This finding is consistent with the theoretical literature and provides a rationale for the adoption of a flexible inflation-targeting regime.

Neural networks as a unifying learning model for random normal form games

2011 ◽  
Vol 19 (6) ◽  
pp. 383-408 ◽  
Author(s):  
Leonidas Spiliopoulos
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Normal Form ◽  
Human Behavior ◽  
Nash Equilibria ◽  
Human Subjects ◽  
Correlation Coefficients ◽  
Normal Form Games ◽  
The Neural Network ◽  
Iterated Dominance

This article models the learning process of a population of randomly rematched tabula rasa neural network agents playing randomly generated 3 × 3 normal form games of all strategic types. Evidence was found of the endogenous emergence of a similarity measure of games based on the number and types of Nash equilibria, and of heuristics that have been found effective in describing human behavior in experimental one-shot games. The neural network agents were found to approximate experimental human behavior very well across various dimensions such as convergence to Nash equilibria, equilibrium selection, and adherence to principles of dominance and iterated dominance. This is corroborated by evidence from five studies of experimental one-shot games, because the Spearman correlation coefficients of the probability distribution over the neural networks’ and human subjects’ actions ranged from 0.49 to 0.89.

Anthropological Concepts and Applied Projects: Influences and Consequences

1980 ◽  
Vol 2 (4) ◽  
pp. 5-22
Author(s):  
David Mandlebaum
Keyword(s):  
Human Behavior ◽  
Small Groups ◽  
Participant Observation ◽  
Human Subjects ◽  
Theory And Practice ◽  
Primary Data ◽  
The People ◽  
Special Quality

The interplay between theory and practice that occurs in all sciences has a special quality in the sciences of human behavior. The human subjects of these studies can be influenced by concepts developed about them: they can interpret and manipulate measures applied to them. This is particularly evident in the work of social-cultural anthropologists who gather their primary data directly from the people studied through participant observation and long interviews. Their close acquaintance with individuals and small groups affords quick feedback from the respondents concerning ideas about them and changes planned for them.

scholarly journals A Cognitive Stylistic Analysis of Catharsis Used by Husseini Preachers

2021 ◽  
Vol 2 (4) ◽  
pp. 523-532
Author(s):  
Basim Jubair Kadhim ◽  
Mujtaba Mohammedali Yahya Al-Hilo
Keyword(s):  
Human Behavior ◽  
Behavioral Response ◽  
Stylistic Analysis ◽  
Loss Of Control ◽  
Prosodic Features ◽  
Emotion Control ◽  
Emotion Model ◽  
Fear And Anxiety ◽  
Control Loss ◽  
Stylistic Device

This study deals with catharsis as a cognitive stylistic device used to expel fear and anxiety for the sake of changing the audience toward better by preachers in Husseini discourse – Hussein is a grand Shiite Muslim leader. It aims to explicate the exploitation of catharsis by Husseini preachers and the conceptualization of such phenomenon by the audience. The study adapts the emotion model developed by Kovecses (2000); five stages are utilized: cause of the emotion, emotion, control, loss of control, and behavioral response. Twenty Husseini sermons are analyzed according to the stages of the model. Consequently, the study has come up with considerable conclusions. Chief among them are: Husseini preachers pragmatically use prosodic features to convey catharsis. A further conclusion is that catharsis is utilized by Husseini preachers as a strategy to teach the audience all the objectives of the Husseini revolution and to connect the objectives to this age for the sake of reform, using the fear that can modulate the human behavior.

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