Subjectivity in inductive inference

Larry Samuelson () and Itzhak Gilboa ()
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Larry Samuelson: Department of Economics, Yale University

Theoretical Economics, 2012, vol. 7, issue 2

Abstract: This paper examines circumstances under which subjectivity enhances the effectiveness of inductive reasoning. We consider agents facing a data generating process who are characterized by inference rules that may be purely objective (or data-based) or may incorporate subjective considerations. The basic intuition is that agents who invoke no subjective considerations are doomed to "overfit" the data and therefore engage in ineffective learning. The analysis places no computational or memory limitations on the agents|the role for subjectivity emerges in the presence of unlimited reasoning powers.

Keywords: Inductive inference; simplicity; prediction; learning (search for similar items in EconPapers)
JEL-codes: C1 D8 (search for similar items in EconPapers)
Date: 2012-05-18
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Related works:
Working Paper: Subjectivity in Inductive Inference (2012)
Working Paper: Subjectivity in Inductive Inference (2009)
Working Paper: Subjectivity in Inductive Inference (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:the:publsh:845

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