We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
PROBABILITIES AS SIMILARITY-WEIGHTED FREQUENCIES.
- Authors
Billot, Antoine; Gilboa, Itzhak; Samet, Dov; Schmeidler, David
- Abstract
A decision maker is asked to express her beliefs by assigning probabilities to certain possible states. We focus on the relationship between her database and her beliefs. We show that if beliefs given a union of two databases are a convex combination of beliefs given each of the databases, the belief formation process follows a simple formula: beliefs are a similarity-weighted average of the beliefs induced by each past case.
- Subjects
PROBABILITY theory; DATABASES; STATISTICAL correlation; MATHEMATICAL combinations; MATHEMATICS; CHANCE
- Publication
Econometrica, 2005, Vol 73, Issue 4, p1125
- ISSN
0012-9682
- Publication type
Article
- DOI
10.1111/j.1468-0262.2005.00611.x