Bierlaire, M.

Irrational Behavior and Optimization

Speaker: Bierlaire Michel

Seminar of the Department of Mechanical Engineering, TU Delft

October 16, 2024

Choice models are powerful tools for capturing complex types of human behavior, including apparent irrationality. However, this often comes at the expense of increased mathematical complexity. Specifically, these models typically lack properties like closed-form solutions and convexity, which makes it challenging to incorporate them into optimization frameworks. In this talk, we will begin by presenting examples of seemingly irrational behavior that are important to capture. We will then introduce a methodology that allows these models (in fact, almost any choice model) to be integrated into an optimization framework. Additionally, we will offer some strategies for managing the inherent complexity of these models.