On Prior Confidence and Belief Updating

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Tác giả: Kenneth Chan, Gary Charness, Chetan Dave, J. Lucas Reddinger

Ngôn ngữ: eng

Ký hiệu phân loại: 121.6 Nature of inquiry

Thông tin xuất bản: 2024

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Bộ sưu tập: Metadata

ID: 205431

 We investigate the difference between confidence in a belief distribution versus confidence over multiple priors using a lab experiment. Theory predicts that the average Bayesian posterior is affected by the former but is unaffected by the latter. We manipulate confidence over multiple priors by varying the time subjects view a black-and-white grid, of which the relative composition represents the prior. We find that when subjects view the grid for a longer duration, they have more confidence, under-update more, placing more weight on priors and less weight on signals when updating. Confidence within a belief distribution is varied by changing the prior beliefs
  subjects are insensitive to this notion of confidence. Overall we find that confidence over multiple priors matters when it should not and confidence in prior beliefs does not matter when it should.
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