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 Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 07-023.
Length: 18 pages
Date of creation: 02 Aug 2007
Date of revision:
Decision making; Bayesian; Behavioral Economics;
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," Levine's Bibliography 843644000000000357, UCLA Department of Economics.
- 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-2007-08-08 (All new papers)
- NEP-CBE-2007-08-08 (Cognitive & Behavioural Economics)
- NEP-HPE-2007-08-08 (History & Philosophy of Economics)
- NEP-UPT-2007-08-08 (Utility Models & Prospect Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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