DIMENSIONALITY AND DISAGREEMENT: ASYMPTOTIC BELIEF DIVERGENCE IN RESPONSE TO COMMON INFORMATION
We provide a model of boundedly rational, multidimensional learning and characterize when beliefs will converge to the truth. Agents maintain beliefs as marginal probabilities instead of joint probabilities, and agents' information is of lower dimension than the model. As a result, for some obs...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Blackwell Publishing Inc.
2019
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| Online Access: | View Fulltext in Publisher |
| LEADER | 01374nam a2200145Ia 4500 | ||
|---|---|---|---|
| 001 | 10.1111-iere.12406 | ||
| 008 | 220511s2019 CNT 000 0 und d | ||
| 020 | |a 00206598 (ISSN) | ||
| 245 | 1 | 0 | |a DIMENSIONALITY AND DISAGREEMENT: ASYMPTOTIC BELIEF DIVERGENCE IN RESPONSE TO COMMON INFORMATION |
| 260 | 0 | |b Blackwell Publishing Inc. |c 2019 | |
| 856 | |z View Fulltext in Publisher |u https://doi.org/10.1111/iere.12406 | ||
| 520 | 3 | |a We provide a model of boundedly rational, multidimensional learning and characterize when beliefs will converge to the truth. Agents maintain beliefs as marginal probabilities instead of joint probabilities, and agents' information is of lower dimension than the model. As a result, for some observations, agents may face an identification problem affecting the role of data in inference. Beliefs converge to the truth when these observations are rare, but beliefs diverge when observations presenting an identification problem are frequent. Robustly, two agents with differing priors who observe identical, unambiguous information may disagree forever, with stronger disagreement the more information received. © (2019) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association | |
| 700 | 1 | |a Loh, I. |e author | |
| 700 | 1 | |a Phelan, G. |e author | |
| 773 | |t International Economic Review | ||