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A Theory of Rational Random Behavior

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Part of the Advanced Studies in Theoretical and Applied Econometrics book series (ASTA, volume 25)

Abstract

It is shown that, under general conditions, rational random behavior (appropriately defined) is equivalent to large-sample maximum-likelihood estimation of the theoretically optimal decision. Some supporting evidence, based on Dutch and American consumption data, is presented. The approach can also be used as a statistical basis for the delegation of authority.

Keywords

Decision Maker Covariance Matrix Maximum Likelihood Estimator Criterion Function Planning Stage 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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Copyright information

© Springer Science+Business Media Dordrecht 1992

Authors and Affiliations

  1. 1.University of ChicagoChicagoUSA

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