Second-Order Induction: Uniqueness and Complexity

@article{Argenziano2018SecondOrderIU,
  title={Second-Order Induction: Uniqueness and Complexity},
  author={Rossella Argenziano and I. Gilboa},
  journal={Econometrics: Econometric \& Statistical Methods - Special Topics eJournal},
  year={2018}
}
Agents make predictions based on similar past cases, while also learning the relative importance of various attributes in judging similarity. We ask whether the resulting "empirical similarity" is unique, and how easy it is to find it. We show that with many observations and few relevant variables, uniqueness holds. By contrast, when there are many variables relative to observations, non-uniqueness is the rule, and finding the best similarity function is computationally hard. The results are… Expand
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Intuitive Beliefs

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