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Publications [#320617] of Philipp Sadowski

Journal Articles

  1. Dillenberger, D; Sadowski, P, Inertial Behavior and Generalized Partition, Economic Research Initiatives at Duke (Erid) Working Paper no. 216 (May, 2016), pp. 26 pages
    (last updated on 2020/02/16)

    Abstract:
    We call behavior inertial if it does not react to the apparent arrival of relevant information. In a context where the precise information content of signals is subjective, we formulate an axiom that captures inertial behavior, and provide a representation that explains such behavior as that of a rational decision maker who perceives a particular type of information structure, which we call a generalized partition. We characterize the learning processes that can be described by a generalized partition. We proceed to assume that there is a true underlying information structure that may not be a generalized partition, and investigate different channels that may lead the decision maker to nonetheless perceive a generalized partition (and thus to display inertial behavior): A cognitive bias referred to as cognitive inertia and a bound on rationality which we term shortsightedness.


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