A testable theory of imperfect perception

Andrew Caplin; Daniel Martin

doi:10.1111/ecoj.12130

A testable theory of imperfect perception

Andrew Caplin, Daniel Martin

Research output: Contribution to journal › Article › peer-review

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 language	English (US)
Pages (from-to)	184-202
Number of pages	19
Journal	Economic Journal
Volume	125
Issue number	582
DOIs	https://doi.org/10.1111/ecoj.12130
State	Published - Feb 1 2015

ASJC Scopus subject areas

Economics and Econometrics

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10.1111/ecoj.12130

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A testable theory of imperfect perception

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