In dmi3kno/deals: Dealing with uncertainty. The choice is yours!

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deals

The purpose of deals is to faclitiate operations with and presentation of decisions under uncertainty.

Installation

You can install the released version of deals from Github with:

remotes::install_github("dmi3kno/deals")

Example

This is a basic example which shows you how to solve a common problem:

library(deals)
library(magrittr)
## basic example code

Transparent deals

Leland, Schneider, & Wilcox (2019) introduced definition of "transparent frames" for decisions under uncertainty (hereafter, "deals"). In this package a deal is a list of two dataframes, each with two columns p (probability of a given outcome) and x (the outcome itself). Decision maker is offered a choice between two uncertain prospects and can choose one of them.

# Allais paradox
a1 <- list(
  data.frame(
    x=c(5e5), 
    p=c(1),
    stringsAsFactors = FALSE),
  data.frame(
    x=c(2.5e6, 5e5, 0), 
    p=c(0.1, 0.89, 0.01),
    stringsAsFactors = FALSE)
)

a1 %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL)

deal_is_transparent(a1)

deal_make_transparent(a1) %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(deal_make_transparent(a1))

a2 <- list(
  data.frame(
    x=c(5e5,0), 
    p=c(0.11,0.89),
    stringsAsFactors = FALSE),
  data.frame(
    x=c(2.5e6,0), 
    p=c(0.10,0.90),
    stringsAsFactors = FALSE)
)
a2 %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(a2)

deal_make_transparent(a2) %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(deal_make_transparent(a2))

a3 <- list(
  data.frame(
    x=c(0,  45, 30, -15, -15), 
    p=c(0.9, 0.06, 0.01, 0.01, 0.02),
    stringsAsFactors = FALSE),
  data.frame(
    x=c(0,  45, 45, -10, -15), 
    p=c(0.9, 0.06, 0.01, 0.01, 0.02),
    stringsAsFactors = FALSE)
)

a3 %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

# this one is transparent
deal_is_transparent(a3)

deal_make_transparent(a3) %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(deal_make_transparent(a3))

a4 <- list(
  data.frame(
    x=c(0,  45, 30, -15), 
    p=c(0.9, 0.06, 0.01, 0.03),
    stringsAsFactors = FALSE),
  data.frame(
    x=c(0,  45, -10, -15), 
    p=c(0.9, 0.07, 0.01, 0.02),
    stringsAsFactors = FALSE)
)
a4 %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(a4)

deal_make_transparent(a4) %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(deal_make_transparent(a4))

a5 <- list(
  data.frame(
    x=c(2500,  2400, 0), 
    p=c(0.33, 0.66, 0.01),
    stringsAsFactors = FALSE),
  data.frame(
    x=c(2400,  2400, 2400), 
    p=c(0.33, 0.66, 0.01),
    stringsAsFactors = FALSE)
)
a5 %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(a5)
deal_make_transparent(a5) %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(deal_make_transparent(a5))

a6 <- list(
  data.frame(
    x=c(2500, 0), 
    p=c(0.33, 0.67),
    stringsAsFactors = FALSE),
  data.frame(
    x=c(2400, 0), 
    p=c(0.34, 0.66),
    stringsAsFactors = FALSE)
)
a6 %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(a6)

deal_make_transparent(a6) %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(deal_make_transparent(a6))

The following pair of deals constitute Allais Paradox. Second deal is proportionate copy of the first one.

a7 <- list(
  data.frame(
    x=c(4000, 0), 
    p=c(0.8, 0.2),
    stringsAsFactors=FALSE),
  data.frame(
    x=c(3000), 
    p=c(1),
    stringsAsFactors = FALSE)
)
a7 %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(a7)

deal_make_transparent(a7) %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(deal_make_transparent(a7))

a8 <- list(
  data.frame(
    x=c(4000, 0), 
    p=c(0.2, 0.8),
    stringsAsFactors=FALSE),
  data.frame(
    x=c(3000, 0), 
    p=c(0.25, 0.75),
    stringsAsFactors = FALSE)
)
a8 %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(a8)

deal_make_transparent(a8) %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(deal_make_transparent(a8))

The following pair of deals exemplify Ellsberg Paradox.

a9r <- list(
  data.frame(
    x=c(8, 0), 
    p=c(0.1, 0.9),
    stringsAsFactors=FALSE),
  data.frame(
    x=c(20, 0),
    p=c(0.05, 0.95),
    stringsAsFactors = FALSE)
)
a9r %>%
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(a9r)

deal_make_transparent(a9r) %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(deal_make_transparent(a9r))

a9b <- list(
  data.frame(
    x=c(8, 0), 
    p=c(0.6, 0.4),
    stringsAsFactors=FALSE),
  data.frame(
    x=c(20, 0),
    p=c(0.3, 0.7),
    stringsAsFactors = FALSE)
)
a9b %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(a9b)

deal_make_transparent(a9b) %>% 
  deal_to_textdf() %>% 
  knitr::kable(col.names = NULL) 

deal_is_transparent(deal_make_transparent(a9b))