糖心TV

"Learning the Krepsian State: Exploration Through Consumption" (joint work with Evan Piermont and Norio Takeoka)

In this paper, we axiomatize an infinite-horizon subjective state space model. In contrast to many subjective state space models, the resolution of uncertainty regarding the true state is an endogenous process that depends on the decision maker's past consumption. In addition, there need not be full resolution of uncertainty between periods.

When a decision maker consumes outcomes, she learns her relative preference between them; after each consumption history, the decision maker's state space is a refinement of the previous state space. We identify the (set of possible) conditional preferences induced by each series of consumption.