Please use this identifier to cite or link to this item: http://hdl.handle.net/2381/8301
Title: Learning without Counterfactuals
Authors: Mengel, Friederike
Rivas, Javier
First Published: Feb-2010
Publisher: Dept. of Economics, University of Leicester
Abstract: In this paper we study learning procedures when counterfactuals (payo s of not-chosen actions) are not observed. The decision maker reasons in two steps: First, she updates her propensities for each action after every payo experience, where propensity is de ned as how much she prefers each action. Then, she transforms these propensities into choice probabilities. We introduce natural axioms in the way propensities are updated and the way propensities are translated into choice, and study the decision marker's behavior when such axioms are in place.
Series/Report no.: Papers in Economics
10/15
Links: http://www.le.ac.uk/economics/research/discussion/papers2010.html
http://hdl.handle.net/2381/8301
Type: Report
Appears in Collections:Reports, Dept. of Economics

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