Search Results - subject:"bayesian updating"

Functional rational expectations equilibria in market games

Shorish, Jamsheed - 2006

The rational expectations equilibrium has been criticized as an equilibrium concept in market game environments. Such an equilibrium may not exist generically, or it may introduce unrealistic assumptions about an economic agent's knowledge or computational ability. We define a rational...

Persistent link: https://www.econbiz.de/10010293735

Identifying the True Willingness-To-Pay of Bayesian Respondents in a Dichotomous Choice Contingent Valuation Methodology

Czajkowski, Jeffrey - Department of Economics, Florida International University - 2006

This paper develops a respondent model of Bayesian updating for a double-bound dichotomous choice (DB-DC) contingent …-to-pay (WTP) may often fail given this respondent Bayesian updating context. Further simulations demonstrate that a simple … extension of current DB-DC identifications derived explicitly from our Bayesian updating behavioral model can correct for much …

Persistent link: https://www.econbiz.de/10005636495

Functional Rational Expectations Equilibria in Market Games

Shorish, Jamsheed - Department of Economics and Finance Research and … - 2006

Persistent link: https://www.econbiz.de/10005247721

Updating Choquet Beliefs.

Eichberger, Jurgen; Grant, Simon; Kelsey, David - Business School, University of Exeter - 2006

We apply Pires’s coherence property between unconditional and conditional preferences that admit a CEU representation. In conjunction with consequentialism (only those outcomes on states which are still possible can matter for conditional preference) this implies that the conditional...

Persistent link: https://www.econbiz.de/10008852516

AGM-consistency and perfect Bayesian equilibrium. Part I: definition and properties

Bonanno, Giacomo - In: International Journal of Game Theory 42 (2013) 3, pp. 567-592

We provide a general notion of perfect Bayesian equilibrium which can be applied to arbitrary extensive-form games and is intermediate between subgame-perfect equilibrium and sequential equilibrium. The essential ingredient of the proposed definition is the qualitative notion of AGM-consistency,...

Persistent link: https://www.econbiz.de/10010993390

Cheap money and risk taking: Opacity versus fundamental risk

Drees, Burkhard; Eckwert, Bernhard; Várdy, Felix - In: European Economic Review 62 (2013) C, pp. 114-129

We explore the effect of interest rates on risk taking and find that it depends on the type of risk involved. In a Bayesian setting, investments can be risky either because payoff-relevant signals are noisy or because the dispersion of the prior is high. While both types of risk contribute...

Persistent link: https://www.econbiz.de/10011048540

The Effects of Experience on Preference Uncertainty: Theory and Empirics for Public and Quasi-Public Environmental Goods

Czajkowski, Mikołaj; Hanley, Nick; LaRiviere, Jacob - Scottish Institute for Research in Economics (SIRE) - 2013

to learn about their preferences through consumption experiences. We develop a theoretical model of Bayesian updating …

Persistent link: https://www.econbiz.de/10011075637

Combining Statistical Evidence From Several Studies

Kuiper, Rebecca M.; Buskens, Vincent; Raub, Werner; … - In: Sociological Methods & Research 42 (2013) 1, pp. 60-81

might differ, while they do measure the same theoretical concepts. In this article, we present a Bayesian updating method …

Persistent link: https://www.econbiz.de/10010614753

Preference for Flexibility and Dynamic Consistency

Riella, Gil - In: Journal of Economic Theory 148 (2013) 6, pp. 2467-2482

Dekel, Lipman, and Rustichini [3] characterize preferences over menus of lotteries that can be represented by the use of a unique subjective state space and a prior. We investigate what would be the appropriate version of Dynamic Consistency in such a setup. The condition we find, which we call...

Persistent link: https://www.econbiz.de/10010719006

Preference for flexibility and dynamic consistency

Riella, Gil - In: Journal of economic theory 148 (2013) 6, pp. 2467-2482

Persistent link: https://www.econbiz.de/10010257924