Bayesian Identification: A Theory for State-Dependent Utilities

S-Tier
Journal: American Economic Review
Year: 2019
Volume: 109
Issue: 9
Pages: 3192-3228

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We provide a revealed preference methodology for identifying beliefs and utilities that can vary across states. A notion of comparative informativeness is introduced that is weaker than the standard Blackwell ranking. We show that beliefs and state-dependent utilities can be identified using stochastic choice from two informational treatments, where one is strictly more informative than another. Moreover, if the signal structure is known, then stochastic choice from a single treatment is enough for identification. These results illustrate novel identification methodologies unique to stochastic choice. Applications include identifying biases in job hiring, loan approvals, and medical advice.

Technical Details

RePEc Handle
repec:aea:aecrev:v:109:y:2019:i:9:p:3192-3228
Journal Field
General
Author Count
1
Added to Database
2026-01-25