Statistical Inference as a Bargaining Game
This 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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- Crawford, Vincent P., 2000.
"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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