I am a PhD student in Economics at University College London
You can find my CV [here]
Microeconomic Theory, Bounded Rationality, Behavioural Economics
Proxy Variables and Feedback Effects in Decision Making [Draft Available Here]
When using data, often an analyst only has access to proxies or measurements of the true variables of interest. I propose a framework that models economic decision makers as ‘flawed statisticians’ who assume potentially noisy proxy variables are perfectly measured. Due to feedback from the decision maker’s choices to the distribution over variables, a notion of equilibrium is required to close the model. I illustrate the concept with applications to policing/crime and market entry. In these examples, we see that very small imperfections in the proxy variable can lead to large distortions in beliefs. I characterize all strategies that can arise as equilibria when measurement is arbitrarily close to perfect.