Vienna University of Economics and Business
We study constrained bi-matrix games, with a particular focus on low-rank games. Our main contribution is a framework that reduces low-rank games to smaller, equivalent constrained games, along with a necessary and sufficient condition for when such reductions exist. Building on this framework, we present three approaches for computing the set of extremal Nash equilibria, based on vertex enumeration, polyhedral calculus, and vector linear programming. Numerical case studies demonstrate the effectiveness of the proposed reduction and solution methods.
We present a novel deep generative semi-supervised framework for credit card fraud detection, formulated as time series classification task. As financial transaction data streams grow in scale and complexity, traditional methods often require large labeled datasets, struggle with time series of irregular sampling frequencies and varying sequence lengths. To address these challenges, we extend conditional Generative Adversarial Networks (GANs) for targeted data augmentation, integrate Bayesian inference to obtain predictive distributions and quantify uncertainty, and leverage log-signatures for robust feature encoding of transaction histories. We introduce a novel Wasserstein distance-based loss to align generated and real unlabeled samples while simultaneously maximizing classification accuracy on labeled data. Our approach is evaluated on the BankSim dataset, a widely used simulator for credit card transaction data, under varying proportions of labeled samples, demonstrating consistent improvements over benchmarks in both global statistical and domain-specific metrics. These findings highlight the effectiveness of GAN-driven semi-supervised learning with log-signatures for irregularly sampled time series and emphasize the importance of uncertainty-aware predictions.
The complexity of black-box algorithms can lead to various challenges, including the introduction of biases. These biases present immediate risks in the algorithms' application. It was, for instance, shown that neural networks can deduce racial information solely from a patient's X-ray scan, a task beyond the capability of medical experts. If this fact is not known to the medical expert, automatic decision-making based on this algorithm could lead to prescribing a treatment (purely) based on racial information. While current methodologies allow for the "orthogonalization" or "normalization" of neural networks with respect to such information, existing approaches are grounded in linear models. Our paper advances the discourse by introducing corrections for non-linearities such as ReLU activations. Our approach also encompasses scalar and tensor-valued predictions, facilitating its integration into neural network architectures. Through extensive experiments, we validate our method's effectiveness in safeguarding sensitive data in generalized linear models, normalizing convolutional neural networks for metadata, and rectifying pre-existing embeddings for undesired attributes.
Neural network representations of simple models, such as linear regression, are being studied increasingly to better understand the underlying principles of deep learning algorithms. However, neural representations of distributional regression models, such as the Cox model, have received little attention so far. We close this gap by proposing a framework for distributional regression using inverse flow transformations (DRIFT), which includes neural representations of the aforementioned models. We empirically demonstrate that the neural representations of models in DRIFT can serve as a substitute for their classical statistical counterparts in several applications involving continuous, ordered, time-series, and survival outcomes. We confirm that models in DRIFT empirically match the performance of several statistical methods in terms of estimation of partial effects, prediction, and aleatoric uncertainty quantification. DRIFT covers both interpretable statistical models and flexible neural networks opening up new avenues in both statistical modeling and deep learning.
Macroeconomic data is characterized by a limited number of observations (small T), many time series (big K) but also by featuring temporal dependence. Neural networks, by contrast, are designed for datasets with millions of observations and covariates. In this paper, we develop Bayesian neural networks (BNNs) that are well-suited for handling datasets commonly used for macroeconomic analysis in policy institutions. Our approach avoids extensive specification searches through a novel mixture specification for the activation function that appropriately selects the form of nonlinearities. Shrinkage priors are used to prune the network and force irrelevant neurons to zero. To cope with heteroskedasticity, the BNN is augmented with a stochastic volatility model for the error term. We illustrate how the model can be used in a policy institution by first showing that our different BNNs produce precise density forecasts, typically better than those from other machine learning methods. Finally, we showcase how our model can be used to recover nonlinearities in the reaction of macroeconomic aggregates to financial shocks.
Ontology engineering (OE) in large projects poses a number of challenges arising from the heterogeneous backgrounds of the various stakeholders, domain experts, and their complex interactions with ontology designers. This multi-party interaction often creates systematic ambiguities and biases from the elicitation of ontology requirements, which directly affect the design, evaluation and may jeopardise the target reuse. Meanwhile, current OE methodologies strongly rely on manual activities (e.g., interviews, discussion pages). After collecting evidence on the most crucial OE activities, we introduce \textbf{OntoChat}, a framework for conversational ontology engineering that supports requirement elicitation, analysis, and testing. By interacting with a conversational agent, users can steer the creation of user stories and the extraction of competency questions, while receiving computational support to analyse the overall requirements and test early versions of the resulting ontologies. We evaluate OntoChat by replicating the engineering of the Music Meta Ontology, and collecting preliminary metrics on the effectiveness of each component from users. We release all code at this https URL.
Our society increasingly benefits from Artificial Intelligence (AI). Unfortunately, more and more evidence shows that AI is also used for offensive purposes. Prior works have revealed various examples of use cases in which the deployment of AI can lead to violation of security and privacy objectives. No extant work, however, has been able to draw a holistic picture of the offensive potential of AI. In this SoK paper we seek to lay the ground for a systematic analysis of the heterogeneous capabilities of offensive AI. In particular we (i) account for AI risks to both humans and systems while (ii) consolidating and distilling knowledge from academic literature, expert opinions, industrial venues, as well as laypeople -- all of which being valuable sources of information on offensive AI. To enable alignment of such diverse sources of knowledge, we devise a common set of criteria reflecting essential technological factors related to offensive AI. With the help of such criteria, we systematically analyze: 95 research papers; 38 InfoSec briefings (from, e.g., BlackHat); the responses of a user study (N=549) entailing individuals with diverse backgrounds and expertise; and the opinion of 12 experts. Our contributions not only reveal concerning ways (some of which overlooked by prior work) in which AI can be offensively used today, but also represent a foothold to address this threat in the years to come.
Active Infrared thermography (AIRT) is a widely adopted non-destructive testing (NDT) technique for detecting subsurface anomalies in industrial components. Due to the high dimensionality of AIRT data, current approaches employ non-linear autoencoders (AEs) for dimensionality reduction. However, the latent space learned by AIRT AEs lacks structure, limiting their effectiveness in downstream defect characterization tasks. To address this limitation, this paper proposes a principal component analysis guided (PCA-guided) autoencoding framework for structured dimensionality reduction to capture intricate, non-linear features in thermographic signals while enforcing a structured latent space. A novel loss function, PCA distillation loss, is introduced to guide AIRT AEs to align the latent representation with structured PCA components while capturing the intricate, non-linear patterns in thermographic signals. To evaluate the utility of the learned, structured latent space, we propose a neural network-based evaluation metric that assesses its suitability for defect characterization. Experimental results show that the proposed PCA-guided AE outperforms state-of-the-art dimensionality reduction methods on PVC, CFRP, and PLA samples in terms of contrast, signal-to-noise ratio (SNR), and neural network-based metrics.
Many existing shrinkage approaches for time-varying parameter (TVP) models assume constant innovation variances across time points, inducing sparsity by shrinking these variances toward zero. However, this assumption falls short when states exhibit large jumps or structural changes, as often seen in empirical time series analysis. To address this, we propose the dynamic triple gamma prior -- a stochastic process that induces time-dependent shrinkage by modeling dependence among innovations while retaining a well-known triple gamma marginal distribution. This framework encompasses various special and limiting cases, including the horseshoe shrinkage prior, making it highly flexible. We derive key properties of the dynamic triple gamma that highlight its dynamic shrinkage behavior and develop an efficient Markov chain Monte Carlo algorithm for posterior sampling. The proposed approach is evaluated through sparse covariance modeling and forecasting of the returns of the EURO STOXX 50 index, demonstrating favorable forecasting performance.
In the digital age, data frequently crosses organizational and jurisdictional boundaries, making effective governance essential. Usage control policies have emerged as a key paradigm for regulating data usage, safeguarding privacy, protecting intellectual property, and ensuring compliance with regulations. A central mechanism for usage control is the handling of obligations, which arise as a side effect of using and sharing data. Effective monitoring of obligations requires capturing usage traces and accounting for temporal aspects such as start times and deadlines, as obligations may evolve over times into different states, such as fulfilled, violated, or expired. While several solutions have been proposed for obligation monitoring, they often lack formal semantics or provide limited support for reasoning over obligation states. To address these limitations, we extend GUCON, a policy framework grounded in the formal semantics of SPAQRL graph patterns, to explicitly model the temporal aspects of an obligation. This extension enables the expressing of temporal obligations and supports continuous monitoring of their evolving states based on usage traces stored in temporal knowledge graphs. We demonstrate how this extended model can be represented using RDF-star and SPARQL-star and propose an Obligation State Manager that monitors obligation states and assess their compliance with respect to usage traces. Finally, we evaluate both the extended model and its prototype implementation.
We propose a novel variational autoencoder (VAE) architecture that employs a spherical Cauchy (spCauchy) latent distribution. Unlike traditional Gaussian latent spaces or the widely used von Mises-Fisher (vMF) distribution, spCauchy provides a more natural hyperspherical representation of latent variables, better capturing directional data while maintaining flexibility. Its heavy-tailed nature prevents over-regularization, ensuring efficient latent space utilization while offering a more expressive representation. Additionally, spCauchy circumvents the numerical instabilities inherent to vMF, which arise from computing normalization constants involving Bessel functions. Instead, it enables a fully differentiable and efficient reparameterization trick via Möbius transformations, allowing for stable and scalable training. The KL divergence can be computed through a rapidly converging power series, eliminating concerns of underflow or overflow associated with evaluation of ratios of hypergeometric functions. These properties make spCauchy a compelling alternative for VAEs, offering both theoretical advantages and practical efficiency in high-dimensional generative modeling.
Conversational interfaces are likely to become more efficient, intuitive and engaging way for human-computer interaction than today's text or touch-based interfaces. Current research efforts concerning conversational interfaces focus primarily on question answering functionality, thereby neglecting support for search activities beyond targeted information lookup. Users engage in exploratory search when they are unfamiliar with the domain of their goal, unsure about the ways to achieve their goals, or unsure about their goals in the first place. Exploratory search is often supported by approaches from information visualization. However, such approaches cannot be directly translated to the setting of conversational search. In this paper we investigate the affordances of interactive storytelling as a tool to enable exploratory search within the framework of a conversational interface. Interactive storytelling provides a way to navigate a document collection in the pace and order a user prefers. In our vision, interactive storytelling is to be coupled with a dialogue-based system that provides verbal explanations and responsive design. We discuss challenges and sketch the research agenda required to put this vision into life.
Determining the number G of components in a finite mixture distribution is an important and difficult inference issue. This is a most important question, because statistical inference about the resulting model is highly sensitive to the value of G. Selecting an erroneous value of G may produce a poor density estimate. This is also a most difficult question from a theoretical perspective as it relates to unidentifiability issues of the mixture model. This is further a most relevant question from a practical viewpoint since the meaning of the number of components G is strongly related to the modelling purpose of a mixture distribution. We distinguish in this chapter between selecting G as a density estimation problem in Section 2 and selecting G in a model-based clustering framework in Section 3. Both sections discuss frequentist as well as Bayesian approaches. We present here some of the Bayesian solutions to the different interpretations of picking the "right" number of components in a mixture, before concluding on the ill-posed nature of the question.
The International Semantic Web Research School (ISWS) is a week-long intensive program designed to immerse participants in the field. This document reports a collaborative effort performed by ten teams of students, each guided by a senior researcher as their mentor, attending ISWS 2023. Each team provided a different perspective to the topic of creative AI, substantiated by a set of research questions as the main subject of their investigation. The 2023 edition of ISWS focuses on the intersection of Semantic Web technologies and Creative AI. ISWS 2023 explored various intersections between Semantic Web technologies and creative AI. A key area of focus was the potential of LLMs as support tools for knowledge engineering. Participants also delved into the multifaceted applications of LLMs, including legal aspects of creative content production, humans in the loop, decentralised approaches to multimodal generative AI models, nanopublications and AI for personal scientific knowledge graphs, commonsense knowledge in automatic story and narrative completion, generative AI for art critique, prompt engineering, automatic music composition, commonsense prototyping and conceptual blending, and elicitation of tacit knowledge. As Large Language Models and semantic technologies continue to evolve, new exciting prospects are emerging: a future where the boundaries between creative expression and factual knowledge become increasingly permeable and porous, leading to a world of knowledge that is both informative and inspiring.
The financial crisis showed the importance of measuring, allocating and regulating systemic risk. Recently, the systemic risk measures that can be decomposed into an aggregation function and a scalar measure of risk, received a lot of attention. In this framework, capital allocations are added after aggregation and can represent bailout costs. More recently, a framework has been introduced, where institutions are supplied with capital allocations before aggregation. This yields an interpretation that is particularly useful for regulatory purposes. In each framework, the set of all feasible capital allocations leads to a multivariate risk measure. In this paper, we present dual representations for scalar systemic risk measures as well as for the corresponding multivariate risk measures concerning capital allocations. Our results cover both frameworks: aggregating after allocating and allocating after aggregation. As examples, we consider the aggregation mechanisms of the Eisenberg-Noe model as well as those of the resource allocation and network flow models.
The digitization of healthcare presents numerous challenges, including the complexity of biological systems, vast data generation, and the need for personalized treatment plans. Traditional computational methods often fall short, leading to delayed and sometimes ineffective diagnoses and treatments. Quantum Computing (QC) and Quantum Machine Learning (QML) offer transformative advancements with the potential to revolutionize medicine. This paper summarizes areas where QC promises unprecedented computational power, enabling faster, more accurate diagnostics, personalized treatments, and enhanced drug discovery processes. However, integrating quantum technologies into precision medicine also presents challenges, including errors in algorithms and high costs. We show that mathematically-based techniques for specifying, developing, and verifying software (formal methods) can enhance the reliability and correctness of QC. By providing a rigorous mathematical framework, formal methods help to specify, develop, and verify systems with high precision. In genomic data analysis, formal specification languages can precisely (1) define the behavior and properties of quantum algorithms designed to identify genetic markers associated with diseases. Model checking tools can systematically explore all possible states of the algorithm to (2) ensure it behaves correctly under all conditions, while theorem proving techniques provide mathematical (3) proof that the algorithm meets its specified properties, ensuring accuracy and reliability. Additionally, formal optimization techniques can (4) enhance the efficiency and performance of quantum algorithms by reducing resource usage, such as the number of qubits and gate operations. Therefore, we posit that formal methods can significantly contribute to enabling QC to realize its full potential as a game changer in precision medicine.
Accelerating climate-tech innovation in the formative stage of the technology life cycle is crucial to meeting climate policy goals. During this period, competing technologies are often undergoing major technical improvements within a nascent value chain. We analyze this formative stage for 14 climate-tech sectors using a dataset of 4,172 North American firms receiving 12,929 early-stage private investments between 2006 and 2021. Investments in these firms reveal that commercialization occurs in five distinct product clusters across the value chain. Only 15% of firms develop end products (i.e., downstream products bought by consumers), while 59% support these end products through components, manufacturing processes, or optimization products, and 26% develop business services. Detailed analysis of the temporal evolution of investments reveals the driving forces behind the technologies that commercialize, such as innovation spillovers, coalescence around a dominant design, and flexible regulatory frameworks. We identify three patterns of innovation: emerging innovation (e.g., agriculture), characterized by recent growth in private investments across most product clusters and spillover from other sectors; ongoing innovation (e.g., energy storage), characterized by multiple waves of investments in evolving products; and maturing innovation (e.g., energy efficiency), characterized by a dominant end product with a significant share of investments in optimization and services. Understanding the development of nascent value chains can inform policy design to best support scaling of climate-tech by identifying underfunded elements in the value chain and supporting development of a full value chain rather than only end products.
Large language models are deep learning models with a large number of parameters. The models made noticeable progress on a large number of tasks, and as a consequence allowing them to serve as valuable and versatile tools for a diverse range of applications. Their capabilities also offer opportunities for business process management, however, these opportunities have not yet been systematically investigated. In this paper, we address this research problem by foregrounding various management tasks of the BPM lifecycle. We investigate six research directions highlighting problems that need to be addressed when using large language models, including usage guidelines for practitioners.
Event sequence data is increasingly available. Many business operations are supported by information systems that record transactions, events, state changes, message exchanges, and so forth. This observation is equally valid for various industries, including production, logistics, healthcare, financial services, education, to name but a few. The variety of application areas explains that techniques for event sequence data analysis have been developed rather independently in different fields of computer science. Most prominent are contributions from information visualization and from process mining. So far, the contributions from these two fields have neither been compared nor have they been mapped to an integrated framework. In this paper, we develop the Event Sequence Visualization framework (ESeVis) that gives due credit to the traditions of both fields. Our mapping study provides an integrated perspective on both fields and identifies potential for synergies for future research.
We develop a framework to holistically test for and monitor the impact of different types of events affecting a country's housing market, yet originating from housing-external sources. We classify events along three dimensions leading to testable hypotheses: prices versus quantities, supply versus demand, and immediate versus gradually evolving. These dimensions translate into guidance about which data type, statistical measure and testing strategy should be used. To perform such test suitable statistical models are needed which we implement as a hierarchical hedonic price model and a complementary count model. These models are amended by regime and contextual variables as suggested by our classification strategy. We apply this framework to the Austrian real estate market together with three disruptive events triggered by the COVID-19 pandemic, a policy tightening mortgage lending standards, as well as the cost-of-living crisis that came along with increased financing costs. The tests yield the expected results and, by that, some housing market puzzles are resolved. Deviating from the prior classification exercise means that some developments would have been undetected. Further, adopting our framework consistently when performing empirical research on residential real estate would lead to better comparable research results and, by that, would allow researchers to draw meta-conclusions from the bulk of studies available across time and space.
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