Ignorance and Uncertainty
Olivier Compte · Andrew Postlewaite
Des 2018 · Econometric Society Monographs Kitabu cha 61 · Cambridge University Press
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Born of a belief that economic insights should not require much mathematical sophistication, this book proposes novel and parsimonious methods to incorporate ignorance and uncertainty into economic modeling, without complex mathematics. Economics has made great strides over the past several decades in modeling agents' decisions when they are incompletely informed, but many economists believe that there are aspects of these models that are less than satisfactory. Among the concerns are that ignorance is not captured well in most models, that agents' presumed cognitive ability is implausible, and that derived optimal behavior is sometimes driven by the fine details of the model rather than the underlying economics. Compte and Postlewaite lay out a tractable way to address these concerns, and to incorporate plausible limitations on agents' sophistication. A central aspect of the proposed methodology is to restrict the strategies assumed available to agents.
Kuhusu mwandishi
Olivier Compte is a Professor at the Paris School of Economics and École des Ponts ParisTech.
Andrew Postlewaite is the Harry P. Kamen Professor of Economics and a Professor of Finance at the University of Pennsylvania.
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