Advanced Decision Theory

Harvard FAS

We will focus on three areas: (1) Stochastic Choice Theory: random utility models used in discrete choice econometrics and IO, as well as models of random perception and cognition used in psychology and behavioral economics. (2) Statistical Decision Theory: the Wald’s model, admissibility, minimax regret and Bayesian regret, the potential outcome model, with connections to the ambiguity literature and model misspecification literature. (3) Non-Bayesian Updating: We will discuss axioms for…