Seminar: Carlos Cueva (Universidad de Alicante)

Fri, 02/10/2023 - 16:17
Diversas personas toman nota y atienden desde sus asientos a la exposición de un conferenciante

Title: Measuring the informativeness of decision-making models

Room: E28

Time: 12:30

Abstract: Experimental evidence of systematic deviations from rationality have inspired numerous alternative models of decision-making. Choosing among these models is a non-trivial task, especially since they often do not explicitly account for errors (i.e. they are deterministic) and have varying degrees of flexibility. This paper presents a new measure that can be used to assess the informativeness of different models with respect to a given dataset. Our measure trades off model fit and flexibility in a parsimonious way, allowing for straightforward comparison of non-nested models. We use this measure to evaluate deterministic choice models and infer subjects' preferences in classic decision-making experiments. We show how this measure allows for the recovery of choice correspondences (for example by recovering indifferences) and appears to perform well out of sample.