Mean and variance responsive learning

B-Tier
Journal: Games and Economic Behavior
Year: 2012
Volume: 75
Issue: 2
Pages: 855-866

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Decision makers are often described as seeking higher expected payoffs and avoiding higher variance in payoffs. We provide some necessary and some sufficient conditions for learning rules, that assume the agent has little prior and feedback information about the environment, to reflect such preferences. We adopt the framework of Börgers, Morales and Sarin (2004, Econometrica) who provide similar results for learning rules that seek higher expected payoffs. Our analysis reveals that a concern for variance leads to quadratic transformations of payoffs to appear in the learning rule.

Technical Details

RePEc Handle
repec:eee:gamebe:v:75:y:2012:i:2:p:855-866
Journal Field
Theory
Author Count
2
Added to Database
2026-01-26