Less is more for Bayesians, too

Authored by: Gregory Wheeler

Routledge Handbook of Bounded Rationality

Print publication date:  October  2020
Online publication date:  October  2020

Print ISBN: 9781138999381
eBook ISBN: 9781315658353
Adobe ISBN:


 Download Chapter



Lore has it that a fundamental principle of Bayesian rationality is for decision makers to never turn down the offer of free information. Cost-free information can only help you, never hurt you, and in the worst case will leave you at status quo ante. Purported exceptions to this principle are no exceptions at all, but instead involve a hidden cost to learning. Make those costs plain and the problem you face is one of balancing the quality of a choice against the costs to you of carrying it out, a trade-off that Bayesian methods are ideally suited to solve.

Search for more...
Back to top

Use of cookies on this website

We are using cookies to provide statistics that help us give you the best experience of our site. You can find out more in our Privacy Policy. By continuing to use the site you are agreeing to our use of cookies.