Dynamics of inductive inference in a unified framework

A-Tier
Journal: Journal of Economic Theory
Year: 2013
Volume: 148
Issue: 4
Pages: 1399-1432

Authors (3)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

We present a model of inductive inference that includes, as special cases, Bayesian reasoning, case-based reasoning, and rule-based reasoning. This unified framework allows us to examine how the various modes of inductive inference can be combined and how their relative weights change endogenously. For example, we establish conditions under which an agent who does not know the structure of the data generating process will decrease, over the course of her reasoning, the weight of credence put on Bayesian vs. non-Bayesian reasoning. We illustrate circumstances under which probabilistic models are used until an unexpected outcome occurs, whereupon the agent resorts to more basic reasoning techniques, such as case-based and rule-based reasoning, until enough data are gathered to formulate a new probabilistic model.

Technical Details

RePEc Handle
repec:eee:jetheo:v:148:y:2013:i:4:p:1399-1432
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25