Statistical Inference as a Bargaining Game
This paper extends the analogy, previously established by Learner (1978a), between a Bayesian inference problem and an economics allocation problem to show 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).
|Date of creation:||20 May 2002|
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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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