5 papers
Learning from an Unknown DGP: Experimental Evidence on Belief Updating with AI Recommendations
Matthew Kovach, Daniel Martin, Gerelt Tserenjigmid
We use a controlled experiment to study how beliefs are updated after receiving qualitative information (AI recommendations) from an unknown data-generating process (DGP). Across 6…
The Focal Quantal Response Equilibrium
Matthew Kovach, Gerelt Tserenjigmid
We propose a generalization of Quantal Response Equilibrium (QRE) built on a simple premise: some actions are more focal than others. In our model, which we call the Focal Quantal…
Price Heterogeneity as a Source of Heterogeneous Demand
John K. -H. Quah, Gerelt Tserenjigmid
We explore heterogeneous prices as a source of heterogeneous or stochastic demand. Heterogeneous prices could arise either because there is actual price variation among consumers o…
Robust Testing Of the Allais Paradox By Paired Choices vs. Paired Valuations
Federico Echenique, Gerelt Tserenjigmid
McGranaghan, Nielsen, O'Donoghue, Somerville, and Sprenger [2024] show that standard paired choice tests for the common ratio effect are structurally biased when choice is stochast…
Inertial Updating with General Information
Adam Dominiak, Matthew Kovach, Gerelt Tserenjigmid
We study belief revision when information is represented by a set of probability distributions, or general information. General information extends the standard event notion while…