Commonsense Explanations of Sparsity, Zipf Law, and Nash's Bargaining Solution

Authors

Olga Kosheleva, The University of Texas at El PasoFollow
Vladik Kreinovich, The University of Texas at El PasoFollow
Kittawit Autchariyapanitkul, Maijo UniversityFollow

Publication Date

5-2020

Comments

Technical Report: UTEP-CS-20-39

Abstract

As econometric models become more and more accurate and more and more mathematically complex, they also become less and less intuitively clear and convincing. To make these models more convincing, it is desirable to supplement the corresponding mathematics with commonsense explanations. In this paper, we provide such explanation for three economics-related concepts: sparsity (as in LASSO), Zipf's Law, and Nash's bargaining solution.