Learning in a Small/Big World
@article{Leung2020LearningIA, title={Learning in a Small/Big World}, author={Benson Tsz Kin Leung}, journal={ArXiv}, year={2020}, volume={abs/2009.11917} }
This paper looks into how learning behavior changes with the complexity of the inference problem and the individual's cognitive ability, as I compare the optimal learning behavior with bounded memory in small and big worlds. A learning problem is a small world if the state space is much smaller than the size of the bounded memory and is a big world otherwise. I show that first, optimal learning behavior is almost Bayesian in small worlds but is significantly different from Bayesian in big…
Figures and Tables from this paper
References
SHOWING 1-10 OF 45 REFERENCES
Unrealistic Expectations and Misguided Learning
- Economics
- 2017
We explore the learning process and behavior of an individual with unrealistically high expectations (overconfidence) when outcomes also depend on an external fundamental that affects the optimal…
On Learning With Finite Memory
- Economics, MathematicsIEEE Transactions on Information Theory
- 2013
It is shown that for any value of K, for any equilibrium of the associated Bayesian game, and under the assumption that each private signal has bounded information content, learning in probability fails to obtain.
On interim rationality , belief formation and learning in decision problems with bounded memory ∗
- Economics
- 2015
We study the process of decision-making and inference by a single, boundedly rational, economic agent. The agent chooses either a safe or a risky alternative in each period after receiving a signal…
Reasoning the fast and frugal way: models of bounded rationality.
- Computer SciencePsychological review
- 1996
The authors have proposed a family of algorithms based on a simple psychological mechanism: one-reason decision making, and found that these fast and frugal algorithms violate fundamental tenets of classical rationality: they neither look up nor integrate all information.
Learning under Diverse World Views: Model-Based Inference
- EconomicsAmerican Economic Review
- 2019
People reason about uncertainty with deliberately incomplete models. How do people hampered by different, incomplete views of the world learn from each other? We introduce a model of “ model-based…
The value of (bounded) memory in a changing world
- Economics
- 2014
The decision problem faced by an agent with bounded memory who receives a sequence of signals from a partially observable Markov decision process is examined and the marginal value of additional memory states need not be positive and may even be negative in the absence of free disposal.
Thinking, Fast and Slow
- Psychology
- 2011
Daniel Kahneman, recipient of the Nobel Prize in Economic Sciences for his seminal work in psychology challenging the rational model of judgment and decision making, is one of the world's most…
Bounded Memory and Biases in Information Processing
- Economics
- 2014
Before choosing among two actions with state‐dependent payoffs, a Bayesian decision‐maker with a finite memory sees a sequence of informative signals, ending each period with fixed chance. He…