Subjectivity in Inductive Inference
AbstractThis paper examines circumstances under which subjectivity enhances the effectiveness of inductive reasoning. We consider a game in which Fate chooses a data generating process and agents are characterized by inference rules that may be purely objective (or data-based) or may incorporate subjective considerations. The basic intuition is that agents who invoke no subjective considerations are doomed to "overfit" the data and therefore engage in ineffective learning. The analysis places no computational or memory limitations on the agents -- the role for subjectivity emerges in the presence of unlimited reasoning powers.
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Bibliographic InfoPaper provided by David K. Levine in its series Levine's Working Paper Archive with number 814577000000000324.
Date of creation: 28 Aug 2009
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- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
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- Itzhak Gilboa & Larry Samuelson & David Schmeidler, 2012. "Dynamics of Inductive Inference in a Unified Framework," Working Papers hal-00712823, HAL.
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