Probabilities in Economic Modelling
AbstractEconomic modeling assumes, for the most part, that agents are Bayesian, that is, that they entertain probabilistic beliefs, objective or subjective, regarding any event in question. We argue that the formation of such beliefs calls for a deeper examination and for explicit modeling. Models of belief formation may enhance our understanding of the probabilistic beliefs when these exist, and may also help up characterize situations in which entertaining such beliefs is neither realistic nor necessarily rational.
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Bibliographic InfoPaper provided by David K. Levine in its series Levine's Working Paper Archive with number 122247000000001976.
Date of creation: 05 Mar 2008
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Other versions of this item:
- Itzhak Gilboa & Andrew Postlewaite & David Schmeidler, 2007. "Probabilities in Economic Modeling," PIER Working Paper Archive 07-023, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Itzhak Gilboa & Andrew Postlewaite & David Schmeidler, 2007. "Probabilities in Economic Modeling," Levine's Bibliography 843644000000000357, UCLA Department of Economics.
- B4 - Schools of Economic Thought and Methodology - - Economic Methodology
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
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