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Harel, Matan; Mossel, Elchanan; Strack, Philipp; Tamuz, Omer - 2018

We study how effectively long-lived rational agents learn from repeatedly observing each others’ actions. We find that in the long run, information aggregation fails, and the fraction of private information transmitted goes to zero as the number of agents gets large. With Normal signals, in...

Persistent link: https://www.econbiz.de/10014036576

The Speed of Rational Learning

Sandroni, Alvaro; Smorodinsky, Rann - 1999

A central result in the rational learning literature is that if the true measure is absolutely continuous with respect to the beliefs then, given enough data, the updated beliefs merge with the true distribution. In this paper, we show that, under absolute continuity, weak merging occurs fast...

Persistent link: https://www.econbiz.de/10014192725

The Rationality of Public Policies - An Analytical Approach

Matei, Ani I.; Dogaru, Tatiana Camelia - 2012

this approach both in key papers of political and administrative sciences, as well as in those concerning the theory of … policies and the theory of rational choice. The context of that relationship holds a great structural and functional complexity … public administration in the context of incorporating the theory of rational choice. The first three chapters have a …

Persistent link: https://www.econbiz.de/10014040927

Rational Inattention Via Ignorance Equivalence

Armenter, Roc; Muller-Itten, Michele; Stangebye, Zachary - 2021

We present a novel approach to finite Rational Inattention (RI) models based on the ignorance equivalent, a fictitious action with state-dependent payoffs that effectively summarizes the optimal learning and conditional choices. The ignorance equivalent allows us to recast the RI problem as a...

Persistent link: https://www.econbiz.de/10014048696

Chapter 2. Rationality and Dynamic Consistency Under Risk and Uncertainty

Hammond, Peter J.; Zank, Horst - In: Handbook of the economics of risk and uncertainty : volume 1, (pp. 41-97). 2014

For choice with deterministic consequences, the standard rationality hypothesis is ordinality, i.e., maximization of a …

Persistent link: https://www.econbiz.de/10014025530

Chapter 4. Rational Inattention and Monetary Economics

Sims, Christopher A. - In: Handbook of monetary economics : volume 3, (pp. 155-181). 2010

Rational inattention theory is economic theory that recognizes that people have finite information-processing capacity …, in the sense of Shannon and engineering information theory. This approach is still in the early stages of development … macroeconomics and finance. In this chapter we introduce the basic ideas of information theory, show how it can be introduced …

Persistent link: https://www.econbiz.de/10014025676

What Does Matter in Economy Today : Between Rationality and Animal Spirits

Dhaoui, Abderrazak - 2011

. Using a data for five international capital markets in developed countries we find that the hypothesis of rationality losses …

Persistent link: https://www.econbiz.de/10013118228

Soros's Reflexivity Concept in a Complex World : Cauchy Distributions, Rational Expectations, and Rational Addiction

Davis, John B. - 2013

George Soros makes an important analytical contribution to understanding the concept of reflexivity in social science by explaining reflexivity in terms of how his cognitive and manipulative causal functions are connected to one another by a pair of feedback loops (Soros, 2013). Here I put aside...

Persistent link: https://www.econbiz.de/10013074308

Rationality's Reach

Badawi, Adam B. - 2014

In Seduction by Contract, Oren-Bar Gill carefully and systematically analyzes how firms may be able to design contracts that exploit the behavioral biases of consumers. He argues that firms can use complexity and deferred costs to induce consumers into agreements that impose excessive penalties,...

Persistent link: https://www.econbiz.de/10013054933

Necessary Condition for Rationality and Adaptive Expectations Schemes

Gallegati, Mauro - 2014

agents' behavior (Chow, 2011). Unfortunately, this expectation scheme may not satisfy the necessary rationality condition …

Persistent link: https://www.econbiz.de/10013058221