Ambiguity and partial Bayesian updating

B-Tier
Journal: Economic Theory
Year: 2024
Volume: 78
Issue: 1
Pages: 155-180

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

Abstract Models of updating a set of priors either do not allow a decision maker to make inference about her priors (full bayesian updating or FB) or require an extreme degree of selection (maximum likelihood updating or ML). I characterize a general method for updating a set of priors, partial bayesian updating (PB), in which the decision maker (1) utilizes an event-dependent threshold to determine whether a prior is likely enough, conditional on observed information, and then (2) applies Bayes’ rule to the sufficiently likely priors. I show that PB nests FB and ML and explore its behavioral properties.

Technical Details

RePEc Handle
repec:spr:joecth:v:78:y:2024:i:1:d:10.1007_s00199-023-01528-7
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25