Series: IMF Working Papers
Author(s): Eduardo Ley
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 20 May 2002
Keywords: Social Welfare Function, Social Information Function, Contract Curve, Nash bargaining solution, Bayesian Inference, Posterior Mode, bargaining, welfare function, social welfare, statistics
This paper extends the analogy, previously established by Learner (1978a), between a Bayesian inference problem and an economics allocation problem to show that posterior modes can be interpreted as optimal outcome...