Estimating Bayesian Decision Problems with Heterogeneous Priors

Stephen Hansen and Michael McMahon

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: In many areas of economics there is a growing interest in how expertise and preferences drive individual and group decision making under uncertainty. Increasingly, we wish to estimate such models to quantify which of these drive decision making. In this paper we propose a new channel through which we can empirically identify expertise and preference parameters by using variation in decisions over heterogeneous priors. Relative to existing estimation approaches, our \Prior-Based Identiffication" extends the possible environments which can be estimated, and also substantially improves the accuracy and precision of estimates in those environments which can be estimated using existing methods.

Keywords: Bayesian decision making; expertise; preferences; estimation. (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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http://www2.warwick.ac.uk/fac/soc/economics/resear ... 127_2013_mcmahon.pdf

Related works:
Working Paper: Estimating Bayesian Decision Problems with Heterogeneous Priors (2015)
Working Paper: Estimating Bayesian Decision Problems with Heterogeneous Priors (2013)
Working Paper: Estimating Bayesian Decision Problems with Heterogeneous Priors (2013)
Working Paper: Estimating Bayesian Decision Problems with Heterogeneous Priors* (2013)
Working Paper: Estimating Bayesian decision problems with heterogeneous priors (2013)
Working Paper: Estimating Bayesian decision problems with heterogeneous priors (2013)
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