Ignorance is bliss: rationality, information and equilibrium - Sciences Po Access content directly
Preprints, Working Papers, ... Year :

Ignorance is bliss: rationality, information and equilibrium


An information-theoretic thought experiment is developed to provide a methodology for predicting endowment distributions in the absence of information on agent preferences. The allocation problem is first presented as a stylised knapsack problem. Although this knapsack allocation is intractable, the social planner can nevertheless make precise predictions concerning the endowment distribution by using its information-theoretic structure. By construction these predictions do not rest on the rationality of agents. It is also shown, however, that the knapsack problem is equivalent to a congestion game under weak assumptions, which means that the planner can nevertheless evaluate the optimality of the unobserved allocation.
Fichier principal
Vignette du fichier
wp2011-04.pdf (180.7 Ko) Télécharger le fichier
Origin : Explicit agreement for this submission

Dates and versions

hal-01069478 , version 1 (29-09-2014)



Sylvain Barde. Ignorance is bliss: rationality, information and equilibrium. 2011. ⟨hal-01069478⟩
62 View
230 Download


Gmail Facebook Twitter LinkedIn More