Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/150169
Authors: 
Samuelson, Larry
Gilboa, Itzhak
Year of Publication: 
2012
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 7 [Year:] 2012 [Issue:] 2 [Pages:] 183-215
Abstract: 
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. The basic intuition is that agents who invoke no subjective considerations are doomed to "overfit" the data and therefore engage in ineffective learning. The analysis places no computational or memory limitations on the agentshe role for subjectivity emerges in the presence of unlimited reasoning powers.
Subjects: 
Inductive inference
simplicity
prediction
learning
JEL: 
C1
D8
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Article

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