TY - JOUR
T1 - Making predictions based on data
T2 - Holistic and atomistic procedures
AU - Glazer, Jacob
AU - Rubinstein, Ariel
N1 - Publisher Copyright:
© 2024 Elsevier Inc.
PY - 2024/3
Y1 - 2024/3
N2 - Subjects were asked to predict the choice made by a hypothetical individual, based on a small sample of his past choices in identical situations. Each of the alternatives facing the individual has a number of components. When the data is presented explicitly as a distribution of past choices, most subjects use the holistic procedure according to which the prediction is the most common choice made in the past. Nevertheless, a significant minority of subjects use atomistic procedures, which relate to the various components individually. When the distribution is not explicitly presented but can be derived from the data, subjects apply both atomistic procedures and holistic rules of thumb.
AB - Subjects were asked to predict the choice made by a hypothetical individual, based on a small sample of his past choices in identical situations. Each of the alternatives facing the individual has a number of components. When the data is presented explicitly as a distribution of past choices, most subjects use the holistic procedure according to which the prediction is the most common choice made in the past. Nevertheless, a significant minority of subjects use atomistic procedures, which relate to the various components individually. When the distribution is not explicitly presented but can be derived from the data, subjects apply both atomistic procedures and holistic rules of thumb.
KW - Data-based predictions
KW - Experimental economics
KW - Non-Bayesian beliefs
UR - http://www.scopus.com/inward/record.url?scp=85182773507&partnerID=8YFLogxK
U2 - 10.1016/j.jet.2023.105791
DO - 10.1016/j.jet.2023.105791
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AN - SCOPUS:85182773507
SN - 0022-0531
VL - 216
JO - Journal of Economic Theory
JF - Journal of Economic Theory
M1 - 105791
ER -