Koray, Semih and Saglam, Ismail (2005): Learning in Bayesian Regulation. Published in: Economics Bulletin , Vol. 3, No. 12 (2007): pp. 1-10.
This is the latest version of this item.
Download (188kB) | Preview
We examine the issue of learning in a generalized principal-agent model with incomplete information. We show that there are situations in which the agent prefers a Bayesian regulator to have more information about his private type. Moreover, the outcome of the Bayesian mechanism regulating the agent is path-dependent; i.e. the convergence of the regulator's belief to the truth does not always yield the complete information outcome.
|Item Type:||MPRA Paper|
|Original Title:||Learning in Bayesian Regulation|
|Keywords:||Learning; Principle-Agent Model; Bayesian Regulation; Incomplete Information Learning|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief
|Depositing User:||Ismail Saglam|
|Date Deposited:||18. Aug 2007|
|Last Modified:||19. Mar 2014 18:19|
Baron D. and R.B. Myerson (1982): "Regulating a Monopolist with Unknown Costs," Econometrica, 50, 911-930.
Blume, L. and D. Easley (1995): "What has the Rational Learning Literature Taught Us?” in Alan Kirman and Mark Salmon, eds. Learning and Rationality in Economics. Oxford: Blackwell, pp. 12-39.
Cox J.C., Shachat J. and M. Walker (2001): "An Experimental Test of Bayesian Learning in Games," Games and Economic Behavior, 34, 11-33.
Crew M.A. and P.R. Kleindorfer (1986): The Economics of Public Utility Regulation. Cambridge, MA: MIT Press.
Feldman, M. and A. McLennan (1989): "Learning in a Repeated Statistical Decision Problem with Normal Disturbances," Manuscript, University of Illinois, Urbana-Champaign.
Gibbard A. (1973): "Manipulation of Voting Schemes: A General Result," Econometrica, 41, 587-602.
Guesnerie R. and J.J. Laffont (1984): "A Complete Solution to a Class of Principal-Agent Problems with an Application to the Control of a Self-Managed Firm," Journal of Public Economics, 25, 329-369.
Jordan J.S. (1991): "Bayesian Learning in Normal Form Games," Games and Economic Behavior, 3, 60-81.
Kalai E. and E. Lehrer (1993): "Rational Learning Leads to Nash Equilibria," Econometrica, 61, 1019-1045.
Kiefer, N. and Y. Nyarko (1989): "Control of an Unknown Linear Process with Learning," International Economic Review, 30 (3), 571-86.
Koray S. and M.R. Sertel (1990): "Pretend-but-Perform Regulation and Limit Pricing," European Journal of Political Economy, 6, 451-472.
Koray S. and I. Saglam (2005): "The Need for Regulating a Bayesian Regulator," Journal of Regulatory Economics, Springer, vol. 28(1), pages 5-21, 07.
Myerson R.B. (1979): "Incentive Compatibility and the Bargaining Problem," Econometrica, 47, 61-74.
Vogelsang, I. (1988): "A Little Paradox in the Design of Regulatory Mechanisms," International Economic Review, 29, 467-476.
Available Versions of this Item
Learning in Bayesian Regulation. (deposited 25. Feb 2007)
Learning in Bayesian Regulation. (deposited 12. Apr 2007)
- Learning in Bayesian Regulation. (deposited 18. Aug 2007) [Currently Displayed]
- Learning in Bayesian Regulation. (deposited 12. Apr 2007)