Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 3 of 3
Full-Text Articles in Social and Behavioral Sciences
A Note On Absolutely Expedient Learning Rules, Carlos Oyarzun
A Note On Absolutely Expedient Learning Rules, Carlos Oyarzun
Carlos Oyarzun
I provide a full characterization of the set of absolutely expedient learning rules introduced in Börgers, Morales, and Sarin (2004) [“Expedient and monotone learning rules,” Econometrica, 72, 383–405]. The expected change in the expected payoff can be written as a quadratic form on the vector of relative expected payoffs of the strategies. This permits use of standard linear algebra arguments to provide a characterization in terms of the matrix defining this quadratic form.
Learning And Risk Aversion, Carlos Oyarzun, Rajiv Sarin
Learning And Risk Aversion, Carlos Oyarzun, Rajiv Sarin
Carlos Oyarzun
Abstract We study the manner in which learning shapes behavior towards risk when individuals are not assumed to know, or to have beliefs about, probability distributions. In any period, the behavior change induced by learning is assumed to depend on the action chosen and the payoff obtained. We characterize learning processes that, in expected value, increase the probability of choosing the safest (or riskiest) actions and provide sufficient conditions for them to converge, in the long run, to the choices of risk averse (or risk seeking) expected utility maximizers. We provide a learning theoretic motivation for long run risk choices, …
Mean And Variance Responsive Learning, Carlos Oyarzun, Rajiv Sarin
Mean And Variance Responsive Learning, Carlos Oyarzun, Rajiv Sarin
Carlos Oyarzun
A learning rule is variance-averse if the expected reduced-distribution of payoffs in the next period has a smaller variance than that of the current reduced-distribution, in every set where all the actions provide the same expected payoff. A learning rule is monotonically variance-averse if it is expected to add probability to the set of actions that have the smallest variance in the set, when all the actions have the same expected payoff. A learning rule is monotonically mean-variance-averse if it is expected to add probability to the set of actions that have the highest expected payoff and smallest variance whenever …