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Modelplasticity and Abductive Decision Making

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  • Subhadeep

    (DEEP)

  • Mukhopadhyay

Abstract

`All models are wrong but some are useful' (George Box 1979). But, how to find those useful ones starting from an imperfect model? How to make informed data-driven decisions equipped with an imperfect model? These fundamental questions appear to be pervasive in virtually all empirical fields -- including economics, finance, marketing, healthcare, climate change, defense planning, and operations research. This article presents a modern approach (builds on two core ideas: abductive thinking and density-sharpening principle) and practical guidelines to tackle these issues in a systematic manner.

Suggested Citation

  • Subhadeep & Mukhopadhyay, 2022. "Modelplasticity and Abductive Decision Making," Papers 2203.03040, arXiv.org, revised Mar 2023.
    • Handle: RePEc:arx:papers:2203.03040
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    References listed on IDEAS

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    7. Subhadeep Mukhopadhyay, 2021. "Density Sharpening: Principles and Applications to Discrete Data Analysis," Papers 2108.07372, arXiv.org, revised Aug 2021.
    8. James J. Heckman & Burton Singer, 2017. "Abducting Economics," American Economic Review, American Economic Association, vol. 107(5), pages 298-302, May.
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