Publications in Journal of Mathematical Economics
In the Editor's view, the formal mathematical expression of economic ideas is of vital importance to economics. Such expression can determine whether a loose economic intuition has a coherent, logical meaning. Also, a full formal development of economic ideas can itself suggest new economic concepts and intuitions. The primary objective of the Journal is to provide a forum for work in economic theory which expresses economic ideas using formal mathematical reasoning. For work to add to this primary objective, it is not sufficient that the mathematical reasoning be new and correct. The work must have real economic content. The economic ideas must be interesting and important. These ideas may pertain to any field of economics or any school of economic thought.
Published on
December 9, 2022
NOMIS Researcher
Carlos Alós-FerrerPublished in
Journal of Mathematical Economics An Axiomatic Characterization of Bayesian Updating
We provide an axiomatic characterization of Bayesian updating, viewed as a mapping from prior beliefs and new information to posteriors, which is disentangled from any reference to preferences. Bayesian updating is characterized by Non-Innovativeness (events considered impossible in the prior remain impossible in the posterior), Dropping (events contradicted by new evidence are considered impossible in the posterior), and Proportionality (for other events, the posterior simply rescales the prior’s probabilities proportionally). The result clarifies the differences between the normative Bayesian benchmark, alternative models, and actual human behavior.
Research Fields
Economics
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