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Inductive inference with incompleteness

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  • Alon, Shiri
  • Bavly, Gilad
  • Gayer, Gabrielle

Abstract

We present an axiomatic model of a process wherein likelihoods of eventualities are compared based on data. One eventuality is perceived as more likely than another whenever the data corroborates this conclusion. However, the correct relevance of records to the eventualities under consideration may be impossible to ascertain with any degree of surety due to multiple interpretations of the data, formalized by allowing the evaluator to entertain multiple weighting functions. The evaluator ranks one eventuality as more likely than another whenever its total weight over the entire database is higher, according to all relevance-weighting functions. Otherwise, the comparison is indecisive.

Suggested Citation

  • Alon, Shiri & Bavly, Gilad & Gayer, Gabrielle, 2022. "Inductive inference with incompleteness," Games and Economic Behavior, Elsevier, vol. 132(C), pages 576-591.
    • Handle: RePEc:eee:gamebe:v:132:y:2022:i:c:p:576-591
    DOI: 10.1016/j.geb.2022.01.020
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    References listed on IDEAS

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    1. Itzhak Gilboa & Fabio Maccheroni & Massimo Marinacci & David Schmeidler, 2010. "Objective and Subjective Rationality in a Multiple Prior Model," Econometrica, Econometric Society, vol. 78(2), pages 755-770, March.
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    4. Itzhak Gilboa & David Schmeidler, 1995. "Case-Based Decision Theory," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 605-639.
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    More about this item

    Keywords

    Incompleteness; Inductive inference; Case-based decision theory; Likelihood comparisons;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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