We thank Daron Acemoglu, Ken Binmore, Arik Roginsky, the editor, and two referees for discussions, comments, and references, as well as the European Research Council (269754), Israel Science Foundation (975/03 and 396/10), and the National Science Foundation (SES-0549946 and SES-0850263) for financial support.
Subjectivity in inductive inference
Article first published online: 18 MAY 2012
Copyright © 2012 Itzhak Gilboa and Larry Samuelson
Volume 7, Issue 2, pages 183–215, May 2012
How to Cite
Gilboa, I. and Samuelson, L. (2012), Subjectivity in inductive inference. Theoretical Economics, 7: 183–215. doi: 10.3982/TE845
- Issue published online: 18 MAY 2012
- Article first published online: 18 MAY 2012
- Submitted 2010-8-9. Final version accepted 2011-4-25. Available online 2011-4-25.
- Inductive inference;
This paper examines circumstances under which subjectivity enhances the effectiveness of inductive reasoning. We consider agents facing a data-generating process who are characterized by inference rules that may be purely objective (or data-based) or may incorporate subjective considerations. Agents who invoke no subjective considerations are doomed to ineffective learning. The analysis places no computational or memory limitations on the agents: the role for subjectivity emerges in the presence of unlimited reasoning powers.