Bayesian Model Selection and Prior Calibration for Structural Models in Economic Experiments: Some Guidance for the Practitioner
“Bayesian estimates from experimental data can be influenced by highly diffuse or “uninformative” priors. This paper discusses how practitioners can use their own expertise to critique and select a prior that (i) incorporates our knowledge as experts in the field, and (ii) achieves favorable sampling properties. I demonstrate these techniques using data from eleven experiments […]
New Stochastic Orders and Monotone Comparative Statics of Changes in Risk under Risk Aversion
“We… apply two stochastic orders to some classic decision problems in economics and finance including a portfolio problem, two insurance problems, and four management decision problems and present a simple sufficient condition for monotone comparative statics of changes in risk under risk aversion.” Lire