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Upon observing a signal, a Bayesian decision maker updates her probability distribution over the state space, chooses an action, and receives a payoff that depends on the state and the action taken. An information structure determines the set of possible signals and the probability of each...
Persistent link: https://www.econbiz.de/10005550947
of the new integral is concavity, which might be interpreted as uncertainty aversion. The integral is then extended to …
Persistent link: https://www.econbiz.de/10005550967