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We suggest a model of categorization based on prototypes. A set of entities, identified with some finite dimensional Euclidian space, is partitioned into a finite number of categories. Such a categorization is said to be generated by extended prototypes if there is a set of distinguished...
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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...
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