Statistical Inference as a Bargaining Game
AbstractThis paper extends the analogy previously established by Leamer (1978a), between a Bayesian inference problem and an economics allocation problem, and shows that posterior modes can be interpreted as optimal outcomes of a bargaining game. This bargaining game, over a parameter value, is played between two players: the researcher, with preferences represented by the prior, and the data, with preferences represented by the likelihood.
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Bibliographic InfoPaper provided by EconWPA in its series Econometrics with number 0110001.
Date of creation: 05 Oct 2001
Date of revision: 16 Nov 2001
Note: Forthcoming in Economics Letters.
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Social Welfare Function; Social Information Function; Contract Curve; Nash bargaining solution; Bayesian Inference; Posterior Mode;
Other versions of this item:
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
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"John Nash and the Analysis of Strategic Behavior,"
University of California at San Diego, Economics Working Paper Series
qt4r56g8kd, Department of Economics, UC San Diego.
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- Sen, Amartya, 1970. "Interpersonal Aggregation and Partial Comparability," Econometrica, Econometric Society, vol. 38(3), pages 393-409, May.
- Ken Binmore, 1998. "Game Theory and the Social Contract - Vol. 2: Just Playing," MIT Press Books, The MIT Press, edition 1, volume 2, number 0262024446, December.
- Walter N. Thurman & Tyler J. Fox & Tayler H. Bingham, 2001. "Imposing Smoothness Priors In Applied Welfare Economics: An Application Of The Information Contract Curve To Environmental Regulatory Analysis," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 511-522, August.
- Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
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