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- W1620797935 abstract "An agent needs to determine a belief over potential outcomes for a new problem based on pastobservations gathered in her database (memory). There is a rich literature in cognitive scienceshowing that human minds process and order information in categories, rather than piece by piece.We assume that agents are naturally equipped (by evolution) with a efficient heuristic intuitionhow to categorize. Depending on how available categorized information is activated and processed,we axiomatize two different versions of belief formation relying on categorizations. In one approachan agent relies only on the estimates induced by the single pieces of information contained in socalled target categories that are activated by the problem for which a belief is asked for. Anotherapproach forms a prototype based belief by averaging over all category-based estimates (so calledprototypical estimates) corresponding to each category in the database. In both belief formationsthe involved estimates are weighted according to their similarity or relevance to the new problem.We impose normatively desirable and natural properties on the categorization of databases. On thestage of belief formation our axioms specify the relationship between different categorized databasesand their corresponding induced (category or prototype based) beliefs. The axiomatization of abelief formation in Billot et al. (Econometrica, 2005) is covered for the situation of a (trivial)categorization of a database that consists only of singleton categories and agents basically do notprocess information categorical." @default.
- W1620797935 created "2016-06-24" @default.
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- W1620797935 date "2014-01-01" @default.
- W1620797935 modified "2023-09-23" @default.
- W1620797935 title "Categorization Based Belief Formations" @default.
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- W1620797935 doi "https://doi.org/10.2139/ssrn.2490435" @default.
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