Fully Bayesian Aggregation

Franz Dietrich

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: Can a group be an orthodox rational agent. This requires the group's aggregate preferences to follow expected utility (static rationality) and to evolve by Bayesian updating (dynamic rationality). Group rationality is possible, but the only preference aggregation rules which achieve it (and are minimally Paretian and continuous) are the linear-geometric rules, which combine individual values linearly and individual beliefs geometrically. Linear-geometric preference aggregation contrasts with classic linear-linear preference aggregation, which combines both values and beliefs linearly, and achieves only static rationality. Our characterisation of linear-geometric preference aggregation implies as corollaries a characterisation of linear value aggregation (Harsanyi's Theorem) and a characterisation of geometric belief aggregation

Keywords: rational group agent; uncertainty; preference aggregation; opinion pooling, static versus dynamic rationality; expected-utility hypothesis; Bayesianism; group rationality versus Paretianism; spurious unanimity; ex-ante versus ex-post Pareto (search for similar items in EconPapers)
JEL-codes: D7 D8 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2020-06, Revised 2021-01
New Economics Papers: this item is included in nep-mic, nep-ore and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Journal of Economic Theory, 194, 2021, 105255

Downloads: (external link)
http://mse.univ-paris1.fr/pub/mse/CES2020/20014R.pdf (application/pdf)
https://halshs.archives-ouvertes.fr/halshs-02905409v3
https://doi.org/10.1016/j.jet.2021.105255

Related works:
Journal Article: Fully Bayesian aggregation (2021)
Working Paper: Fully Bayesian Aggregation (2021)
Working Paper: Fully Bayesian Aggregation (2021)
Working Paper: Fully Bayesian Aggregation (2021)
Working Paper: Fully Bayesian Aggregation (2021)
Working Paper: Fully Bayesian Aggregation (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:20014r

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