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Learning under Ambiguity - A Note on the Belief Dynamics of Epstein and Schneider (2007)
2014
Epstein and Schneider (2007) develop a framework of learning under ambiguity, generalizing maxmin preferences of Gilboa and Schmeidler (1989) to intertemporal settings. The specific belief dynamics in Epstein and Schneider (2007) rely on the rejection of initial priors that have become implausible over the learning process. I demonstrate that this feature of ex-post rejection of theories gives rise to choices that are in sharp contradiction with ambiguity aversion. Concrete, the intertemporal
doi:10.11588/heidok.00017512
fatcat:kskcqz2w3bgq5min2rk43qmd3e