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Using belief elicitation, the paper investigates the formation and the evolution of beliefs in a signalling game in … which a common prior on Sender's type is not induced. Beliefs are elicited about the type of the Sender and about the … strategies of the players. The experimental subjects often start with diffuse uniform beliefs and update them in view of …
Persistent link: https://www.econbiz.de/10009535526
This paper extends several existing learning models to investigate their fixed points (their long run predictions of play). The fixed points of the model are not necessarily at the Nash equilibria of the payoff matrices but are a function of both the Nash equilibria and the parameters of the...
Persistent link: https://www.econbiz.de/10005677865
Experimental data is used to test a variety of learning models using a model that extends several of the existing learning models. Generally, the parameter estimate are in the expected ranges. Individual agent parameter estimates indicate that there is considerable individual heterogeneity....
Persistent link: https://www.econbiz.de/10005677870
different beliefs about how policy choices will map into future economic outcomes. We show that when the incumbent party can …-serving behavior by political parties, but rather stems from their differing beliefs about the consequences of their actions. …
Persistent link: https://www.econbiz.de/10010791257
different beliefs about how policy choices will map into future economic outcomes. We show that when the incumbent party can … having conflicting objectives, but rather stems from their differing beliefs about the consequences of their actions. …
Persistent link: https://www.econbiz.de/10011117645
distortion, or if information asymmetries are captured through beliefs over the state of a finite Markov chain. …
Persistent link: https://www.econbiz.de/10011673206
We analyze a social learning model where the agents' utility depends not only on an unknown common component but also on an unknown idiosyncratic component. Each agent splits a learning budget between the two components. We characterize the optimal learning decisions and find necessary and...
Persistent link: https://www.econbiz.de/10014095582
In the present paper I develop a life-cycle portfolio choice model where agents perceive stock returns to be ambiguous and are ambiguity averse. As in Epstein and Schneider (2005) part of the ambiguity vanishes over time as a consequence of learning over observed returns. The model shows that...
Persistent link: https://www.econbiz.de/10004998382
Persistent link: https://www.econbiz.de/10014551460
Persistent link: https://www.econbiz.de/10014231301