Quotes / Decision Maker Protagonist

2020 Papers / Making Decisions Under Model Misspecification Perfology / Statistics Topics / Mathematics Topics / Statistics Authors / Simone Cerreia-Vioglio Authors / Lars Peter Hansen Authors / Fabio Maccheroni Authors / Massimo Marinacci
Making Decisions Under Model Misspecification

The protagonist of our analysis is a decision maker who is able to formulate models – for instance a policy maker having to decide a climate policy based on existing alternative climate models – but is concerned about their misspecification and wants to use a decision criterion which accounts for that. Our axiomatic analysis, which has a normative nature, aims to derive a criterion of this kind to help the decision maker to cope with model misspecification in a principled way.