Theoretical and Behavioural Economics Seminar - Jakub Steiner (Zurich/CERGE-EI)
30 April 2024, 4:30 pm–6:00 pm

Constrained data-fitters
Event Information
Open to
- All
Organiser
-
Duarte Gonçalves/Deniz Kattwinkel
Abstract: We explore approximate Bayesian updating and likelihood maximization within a machine learning-inspired framework. We demonstrate that, under certain cognitive constraints, simpler models yield the most effective constrained fit to the actual data-generating process. While more complex models could potentially offer a superior fit, agents facing cognitive constraints may lack the capability to assess this fit accurately.
Location: Physics A1/3