A testable theory of imperfect perception

Andrew Caplin, Daniel Martin

    Research output: Contribution to journalArticle

    Abstract

    We provide a characterisation of choice behaviour generated by a Bayesian expected utility maximiser. The observable signature of this standard model is the impossibility of raising utility by switching wholesale from one action to another. We provide applications to robustness, to the recovery of utility from choice data and to model classification.

    Original languageEnglish (US)
    Pages (from-to)184-202
    Number of pages19
    JournalEconomic Journal
    Volume125
    Issue number582
    DOIs
    StatePublished - Feb 1 2015

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    Expected utility
    Robustness
    Choice behavior
    Impossibility

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    A testable theory of imperfect perception. / Caplin, Andrew; Martin, Daniel.

    In: Economic Journal, Vol. 125, No. 582, 01.02.2015, p. 184-202.

    Research output: Contribution to journalArticle

    Caplin, A & Martin, D 2015, 'A testable theory of imperfect perception', Economic Journal, vol. 125, no. 582, pp. 184-202. https://doi.org/10.1111/ecoj.12130
    Caplin, Andrew ; Martin, Daniel. / A testable theory of imperfect perception. In: Economic Journal. 2015 ; Vol. 125, No. 582. pp. 184-202.
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