UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

Modeling Players with Random "Data Access"

Spiegler, R; (2022) Modeling Players with Random "Data Access". Journal of Economic Theory , 198 , Article 105374. 10.1016/j.jet.2021.105374.

[thumbnail of BNGT12oct2021.pdf] Text
BNGT12oct2021.pdf - Accepted Version
Access restricted to UCL open access staff until 28 October 2022.

Download (308kB)

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"
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
Downloads since deposit
0Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item