19 citations · 19 across the 3 of their papers we have counts for
6 papers
Learning and Equilibrium under Model Misspecification
Ignacio Esponda, Demian Pouzo
This chapter develops a unified framework for studying misspecified learning situations in which agents optimize and update beliefs within an incorrect model of their environment.…
Berk-Nash Rationalizability
Ignacio Esponda, Demian Pouzo
We introduce Berk--Nash rationalizability, a set-valued counterpart to Berk--Nash equilibrium for environments in which agents may hold misspecified models. A set of behaviors is s…
Asymptotic Behavior of Bayesian Learners with Misspecified Models
Ignacio Esponda, Demian Pouzo, Yuichi Yamamoto
We consider an agent who represents uncertainty about the environment via a possibly misspecified model. Each period, the agent takes an action, observes a consequence, and uses Ba…
The Industry Supply Function and the Long-Run Competitive Equilibrium with Heterogeneous Firms
Ignacio Esponda, Demian Pouzo
In developing the theory of long-run competitive equilibrium (LRCE), Marshall (1890) used the notion of a representative firm. The identity of this firm, however, remained unclear.…
Equilibrium in Misspecified Markov Decision Processes
Ignacio Esponda, Demian Pouzo
We study Markov decision problems where the agent does not know the transition probability function mapping current states and actions to future states. The agent has a prior belie…
Berk-Nash Equilibrium: A Framework for Modeling Agents with Misspecified Models
Ignacio Esponda, Demian Pouzo
We develop an equilibrium framework that relaxes the standard assumption that people have a correctly-specified view of their environment. Each player is characterized by a (possib…