{"title":"Now decision theory","authors":"Dilip B. Madan, Wim Schoutens, King Wang","doi":"10.3934/puqr.2023018","DOIUrl":null,"url":null,"abstract":"The spirit of now in nowcasting suggests expanding the current to include the near future. Decision theory is then developed by incorporating the consequences of actions into the present. With the future falling into the present discounting it is no longer permitted. Value functions are then observed to be determinate only up to scale and shift that are then locked down by fixing values arbitrarily in two selected states, much like declaring water to freeze and boil at zero and a hundred degrees celsius. The locked down value functions associated policy functions are seen to exist in decision contexts in where the only time is now. Examples are studied in univariate and multivariate dimensions for the decision state space and the dimension of shocks delivering state transitions. The policy functions are expanded from realisitic training sets to the full state space using Gaussian Process Regression. They are implemented on real data with reported performances.","PeriodicalId":1,"journal":{"name":"Accounts of Chemical Research","volume":null,"pages":null},"PeriodicalIF":16.4000,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Accounts of Chemical Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.3934/puqr.2023018","RegionNum":1,"RegionCategory":"化学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"CHEMISTRY, MULTIDISCIPLINARY","Score":null,"Total":0}
引用次数: 0
Abstract
The spirit of now in nowcasting suggests expanding the current to include the near future. Decision theory is then developed by incorporating the consequences of actions into the present. With the future falling into the present discounting it is no longer permitted. Value functions are then observed to be determinate only up to scale and shift that are then locked down by fixing values arbitrarily in two selected states, much like declaring water to freeze and boil at zero and a hundred degrees celsius. The locked down value functions associated policy functions are seen to exist in decision contexts in where the only time is now. Examples are studied in univariate and multivariate dimensions for the decision state space and the dimension of shocks delivering state transitions. The policy functions are expanded from realisitic training sets to the full state space using Gaussian Process Regression. They are implemented on real data with reported performances.
期刊介绍:
Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance.
Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.