We introduce a learning model in which the decision maker does not know how recommendations are generated, called the contraction rule. We present behavioral postulates that characterize it. The contraction rule can be uniquely identified and reveals how the decision maker interprets and how much she trusts the recommendation. In a dynamic stationary setting, we show that the contraction rule is not dominated by completely following recommendations and is incompatible with a property called compliance with balanced recommendations. Following this negative result, we demonstrate that the contraction rule may generate and reinforce recency bias and disagreement.
Prof. Chen ZHAO
经济学
Assistant Professor
2857 8564
KK 924
Academic & Professional Qualification
- Ph.D., M.A., Princeton University
- B.Econ., The University of Hong Kong
Biography
Chen ZHAO received his Ph.D. and M.A. in economics from Princeton University. He also holds a B.Econ. from HKU. Chen joined HKU, his alma mater, in 2017 as an assistant professor. His main research field is axiomatic decision theory.
Research Interest
- Microeconomic Theory
- Decision Theory
- Behavioral Economics
Selected Publications
- “Logic-based updating,” Journal of Economic Theory, 2024, 221, 105901.
- “Learning from a Black Box,” Journal of Economic Theory, 2024, 221, 105886.
- “Cheap talk with prior-biased inferences,” Games and Economic Behavior, 2023, 138, 254-280.
- “Pseudo-Bayesian Updating,” Theoretical Economics, 2022, 17(1), 253-289.
Recent Publications
1Oct
1 Oct 2024
Journal of Economic Theory