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Shrinkage Priors For Isotonic Probability Vectors And Binary Data Modeling, Philip S. Boonstra, Daniel R. Owen, Jian Kang

The University of Michigan Department of Biostatistics Working Paper Series

This paper outlines a new class of shrinkage priors for Bayesian isotonic regression modeling a binary outcome against a predictor, where the probability of the outcome is assumed to be monotonically non-decreasing with the predictor. The predictor is categorized into a large number of groups, and the set of differences between outcome probabilities in consecutive categories is equipped with a multivariate prior having support over the set of simplexes. The Dirichlet distribution, which can be derived from a normalized cumulative sum of gamma-distributed random variables, is a natural choice of prior, but using mathematical and simulation-based arguments, we show that …