Opening book details…
Can I read An Axiomatization of Learning Rules when Counterfactuals are not Observed on EtoBox?
An Axiomatization of Learning Rules when Counterfactuals are not Observed by Friederike Mengel; Javier Rivas is a Economics, Econometrics and Finance article available to read on EtoBox.
What is An Axiomatization of Learning Rules when Counterfactuals are not Observed about?
In this paper we study learning procedures when counterfactuals (payoffs of not chosen actions) are not observed. The decision maker reasons in two steps: First, she updates her propensities for choosing each action after every payoff experience, where propensities can be interpreted as preferences. Then, she transforms these propensities into choice probabilities. We introduce a set of axioms on how propensities are updated and on how these propensities are translated into choices and study the decision marker's behavior when such axioms are in place. Our characterization includes the linear reinforcement learning rule from Roth and Erev (1995).
Who reads An Axiomatization of Learning Rules when Counterfactuals are not Observed?
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Friederike Mengel; Javier Rivas
- Publisher
- Walter de Gruyter GmbH
- Published
- 2012
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)