Artikel
Equilibrium in misspecified Markov decision processes
We provide an equilibrium framework for modeling the behavior of an agent who holds a simplified view of a dynamic optimization problem. The agent faces a Markov Decision Process, where a transition probability function determines the evolution of a state variable as a function of the previous state and the agent's action. The agent is uncertain about the true transition function and has a prior over a set of possible transition functions; this set reflects the agent's (possibly simplified) view of her environment and may not contain the true function. We define an equilibrium concept and provide conditions under which it characterizes steady-state behavior when the agent updates her beliefs using Bayes' rule.
- Language
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Englisch
- Bibliographic citation
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Journal: Theoretical Economics ; ISSN: 1555-7561 ; Volume: 16 ; Year: 2021 ; Issue: 2 ; Pages: 717-757 ; New Haven, CT: The Econometric Society
- Classification
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Wirtschaft
Optimization Techniques; Programming Models; Dynamic Analysis
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- Subject
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Misspecified model
Markov decision process
equilibrium
- Event
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Geistige Schöpfung
- (who)
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Esponda, Ignacio
Pouzo, Demian
- Event
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Veröffentlichung
- (who)
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The Econometric Society
- (where)
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New Haven, CT
- (when)
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2021
- DOI
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doi:10.3982/TE3843
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Esponda, Ignacio
- Pouzo, Demian
- The Econometric Society
Time of origin
- 2021
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