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Profiling Problems With Partially Identified Structure

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Author Info
William A. Brock
Abstract

This article studies two classes of profiling problems where the relevant structural inputs to the problems may be only partially identified: that where profilees are not 'strategic' in altering their characteristics and that where profilees strategically alter their characteristics at a cost. The analysis is unified by assuming there is a utilitarian planner that attempts to optimise the sum of welfare. We compare maximin solutions and minimax-regret solutions in two contexts. An unexpected feature of the minimax-regret solution is that a minimax-regret planner may end up learning unknown features of the population it faces rather quickly relative to a maximin planner. Copyright 2006 The Author(s). Journal compilation Royal Economic Society 2006.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0297.2006.01130.x
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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 116 (2006)
Issue (Month): 515 (November)
Pages: F427-F440
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Handle: RePEc:ecj:econjl:v:116:y:2006:i:515:p:f427-f440

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  1. William A. Brock & Steven N. Durlauf & James M. Nason & Giacomo Rondina, 2007. "Simple versus optimal rules as guides to policy," Working Paper 2007-07, Federal Reserve Bank of Atlanta. [Downloadable!]
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This page was last updated on 2008-8-19.


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