Document Type
Discussion Paper
Publication Date
11-1-2004
CFDP Number
1492
CFDP Pages
20
Abstract
A decision maker is asked to express her beliefs by assigning probabilities to certain possible states. We focus on the relationship between her database and her beliefs. We show that, if beliefs given a union of two databases are a convex combination of beliefs given each of the databases, the belief formation process follows a simple formula: beliefs are a similarity-weighted average of the beliefs induced by each past case.
Recommended Citation
Billot, Antoine; Gilboa, Itzhak; Samet, Dov; and Schmeidler, David, "Probabilities as Similarity-Weighted Frequencies" (2004). Cowles Foundation Discussion Papers. 1774.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1774