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We estimate a Bayesian learning model with heterogeneity aimed at explaining expert forecast disagreement and its evolution over horizons. Disagreement is postulated to have three components due to differences in: i) the initial prior beliefs, ii) the weights attached on priors, and iii)...
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The problem of coordination between policymakers seems to have created fundamental problems related to economic and social costs, targeted inflation, potential growth, and a high budget deficit. To resolve these problems in this framework, it is important to see the results of the interaction...
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Over a century ago, Oliver Wendell Holmes invited scholars to look at law through the lens of probability theory: ‘The …
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This paper develops a framework for estimating Quantal Response Equilibrium models from experimental data using Bayesian techniques. Bayesian techniques offer some advantages over the more commonly-used maximum likelihood approach: (i) the accuracy of the posterior simulation is limited by...
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set of games than current Nash Equilibrium based games theory, including games with inaccurate observations, games with … games analyzed by the current games theory, it generates far lesser equilibriums and normally generates only a unique … equilibrium. It also resolves inconsistencies in equilibrium results by different solution concepts in current games theory …
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