Tesfatsion, Leigh

Theory and Decision Vol. 14 (1982): 177-194.

This article surveys results established to date for the "criterion filtering" approach to adaptive control. Criterion filtering bypasses the usual preliminary updating of probability distributions via transitional probability assessments (Bayes' rule) and focuses instead on the direct updating of the criterion function, itself, via transitional return assessments. Annotated pointers to related work can be accessed here: http://www.econ.iastate.edu/tesfatsi/cfhome.htm

JEL Classification: C6, D03

Keywords: behavioral economics, Learning, Bayes' rule, criterion filtering