Spiegler, R;
(2022)
Modeling Players with Random "Data Access".
Journal of Economic Theory
, 198
, Article 105374. 10.1016/j.jet.2021.105374.
Preview |
Text
BNGT12oct2021.pdf - Accepted Version Download (308kB) | Preview |
Abstract
I present an approach to static equilibrium modeling with non-rational expectations, which is based on enriching players’ typology. A player is characterized by his “data access”, consisting of: (i) “news access”, which corresponds to a conventional signal in the Harsanyi model, and (ii) “archival access”, a novel component representing the player’s piecemeal knowledge of steady-state correlations. Drawing on prior literature on correlation neglect and coarse reasoning, I assume the player extrapolates a well-specified probabilistic belief from his “archival data” according to the maximum-entropy criterion. I show with a series of examples how this formalism extends our ability to represent and analyze strategic interactions without rational expectations.
| Type: | Article |
|---|---|
| Title: | Modeling Players with Random "Data Access" |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.jet.2021.105374 |
| Publisher version: | https://doi.org/10.1016/j.jet.2021.105374 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher's terms and conditions. |
| Keywords: | Non-rational expectations, Non-standard type space, Archival information, Maximum entropy, Limited data access |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10136744 |
Archive Staff Only
 |
View Item |
