2015
Nov
29

# Game Theory & Math Economics: Ran Spiegler (Tel Aviv University and University College London) - "On the "Limited Feedback" Foundation of Boundedly Rational Expectations"

4:00pm to 5:00pm

## Location:

Elath Hall, 2nd floor, Feldman Building, Edmond Safra Campus

A common justification for boundedly rational expectations is that agents receive partial feedback about the equilibrium distribution. I formalize this idea in the context of the "Bayesian network" representation of boundedly rational expectations, presented in Spiegler (2015). According to this representation, the decision maker forms his beliefs as if he Öts a subjective causal model - captured by a directed acyclic graph (DAG) over the set of variables - to the objective distribution.