Division of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 You Won’t Harm Me If You Fool Me

نویسندگان

  • Federico Echenique
  • Eran Shmaya
چکیده

A decision maker faces a new theory of how certain events unfold over time. The theory matters for choices she needs to make, but possibly the theory is a fabrication. We show that there is a test which is guaranteed to pass a true theory, and which is also conservative: A false theory will only pass when adopting it over the decision maker’s initial theory would not cause substantial harm; if the agent is fooled she will not be harmed. We also study a society of conservative decision makers with different initial theories. We uncover pathological instances of our test: a society collectively rejects most theories, be they true or false. But we also find well-behaved instances of our test, collectively accepting true theories and rejecting false. Our tests builds on tests studied in the literature in the context of non-strategic inspectors. JEL classification numbers: C72,D83

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تاریخ انتشار 2007