Probabilities in Economic Modeling
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 UCLA Department of Economics in its series Levine's Bibliography with number 843644000000000357.
Date of creation: 10 Aug 2007
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Other versions of this item:
- Itzhak Gilboa & Andrew Postlewaite & David Schmeidler, 2008. "Probabilities in Economic Modelling," Levine's Working Paper Archive 122247000000001976, David K. Levine.
- 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.
- B4 - Schools of Economic Thought and Methodology - - Economic Methodology
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-27 (All new papers)
- NEP-CBE-2007-08-27 (Cognitive & Behavioural Economics)
- NEP-HPE-2007-08-27 (History & Philosophy of Economics)
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