Highly Influenced

# Anticipated Utility and Rational Expectations as Approximations of Bayesian Decision Making ∗

@inproceedings{Cogley2005AnticipatedUA, title={Anticipated Utility and Rational Expectations as Approximations of Bayesian Decision Making ∗}, author={Timothy Cogley and Thomas J. Sargent}, year={2005} }

- Published 2005

For a Markov decision problem in which unknown transition probabilities serve as hidden state variables, we study the quality of two approximations to the decision rule of a Bayesian who each period updates his subjective distribution over the transition probabilities by Bayes’ law. The first is the usual rational expectations approximation that assumes that the decision maker knows the transition probabilities. The second approximation is a version of Kreps’ (1998) anticipated utility model in… CONTINUE READING

Highly Influential

This paper has highly influenced 11 other papers. REVIEW HIGHLY INFLUENTIAL CITATIONS

Highly Cited

This paper has 63 citations. REVIEW CITATIONS

#### From This Paper

##### Figures, tables, and topics from this paper.

#### Citations

##### Publications citing this paper.

#### Citation Statistics

#### 64 Citations

Citations per Year

Semantic Scholar estimates that this publication has

**64**citations based on the available data.See our **FAQ** for additional information.