An incomplete ignorance state in repeated-play decision making: A note on Bayesian decision-theoretical framework

Yohei Kobayashi and Takemi Fujikawa ()

MPRA Paper from University Library of Munich, Germany

Abstract: There has been much reported on decisions from experience, also referred to as decisions in a complete ignorance fashion. This note lays out a Bayesian decision-theoretical framework that provides a computable account for decisions from experience. To make the framework more tractable, this note sets up and examines decisions in a incomplete ignorance fashion. The current discussion asserts that well-known behavioural effects, such as the hot stove effect, and the Bayesian framework may lead to different predictions.

Keywords: Bayesian updating; complete ignorance; decisions from experience; incomplete ignorance (search for similar items in EconPapers)
JEL-codes: C11 D03 D81 (search for similar items in EconPapers)
Date: 2010-12-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/28265/1/MPRA_paper_28265.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:28265

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().